I am purchasing a resale flat in Mumbai, the previous flat owner purchased it from builder in 2017 and made an “agreement for sale” and paid stamp duty and registered the property. Now in 2024 I am buying the property, we have agreed for a date to do registration by making an agreement for sale, 1st installment will be paid on the date of registration via online transfer, rest all installment will be paid in 2 months’ time from the date of registration. My question is after 2 months when the entire amount is paid do I have to make a “Sale Deed “again and register that sale deed? Because just making agreement for sale will not transfer the title of property to me. Is it necessary to make Sale deed? or agreement for sale will be sufficient, because the lawyer is saying you don’t have to make sale deed and they will put a clause in "agreement for sale" that on completion of entire amount of payment to the seller the "agreement for sale" will be considered as "sale deed". Can you please tell me the standard practice that is followed in Mumbai.
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Agreement for Sale or Sale Deed
As such your lawyer is correct, subject to possession clause, & society transfer formalities.
Hello Sir,
Thank you very much for your reply, can you please explain about the subject to possession clause and if society can have an issue if it just an agreement for sale? The reason I am asking this is because agreement for sale will not help me transfer the title of property which can be an issue in future if I want to sell the said flat and the future buyer will ask for sale deed and if I don't have the sale deed the transaction won't happen.
Another follow up question is according to you there is no need to do sale deed, if agreement for sale is done, right sir? Is this the standard practice in Mumbai?
Thank you in advance.
@ MRP......
You should have the accountability of the cash amount, being deposited in sav account. It can be income/gift/ loan etc. If you cannot prove its source, it will be treated as income.
@ zzzzz ...
If Sale deed has sufficient clause based on possession and transfer terms, it is equivalent to sale deed. Hence, in Mumbai this is the practice.
Society also transfers the shares based on this Agreement along with duly signed transfer forms.
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