On 31 October 2020, a 40-year-old man was arrested by Noida police for deceiving a bank of 2 Crores by forging debt and using loans. On the same day, the judge of the main meetings of Madurai, G Ilangovan, granted two sub-registries arrested by the Sanddigul Criminal Police Office, an early bail, on charges of recording documents without prior verification. According to the police, they registered the deed of sale without checking the certificate of charge, as well as the original documents, parental documents, death certificate, etc. As lawyers, we are often asked whether agreements that are not made on stamp paper are invalid and unenforceable. The answer is a simple “NO.” Agreements can be made either on a stamp paper or in a non-buffer document. While agreement has been reached on a document without stamps, certain legal aspects must be respected. This article establishes the validity of unstamped agreements and delves into the legal and technical consequences of unmarked agreements. The purchase contract on stamp paper is valid. Invalid registration fees Validity of agreement for sale What the sales contract creates is the buyer`s right to acquire the property in question by meeting certain conditions. Similarly, the seller obtains the right to obtain the buyer`s consideration in accordance with his part of the terms and conditions. The sale contract may or may not lead to an effective sale of the property in question. Some stamp tax laws, such as the Maharashtra Stamp Act, consider that an agreement to sell a property on the same basis as a proper transport record, as well as a proper transport record, are subject to the same stamp duty as the one in force for the proper sale of a property. Under these provisions, which require the payment of stamp duty on a sales contract, a sale agreement is wrongly considered a good act of sale.
A deed of sale is a legal document that proves that the seller transferred absolute ownership of the property to the buyer. Through this document, the rights and interests of the property are acquired by the new owner. A sales certificate usually consists of the following information – The Indian Registration Act provides for the registration of documents and thus records the contents of the document. Registration is necessary to preserve evidence and titles. There are certain agreements mentioned in Section 17 of the Indian Registration Act, which must be forcibly registered and therefore cannot be made without stamp paper. Some of them are, A deal for sale, is an agreement to sell a property in the future. This agreement sets out the conditions under which the property in question is transferred. The Transfer of Ownership Act of 1882, which governs matters relating to the purchase and transfer of real property, defines the contract of sale or a sales contract as follows: See the unregified sale agreement may be considered evidence of the sale and the unregured sale agreement, since it is a legal action for a specified benefit and it could be permitted to provide evidence Section 49 of the Registration Act.
The non-registered sale agreement can form the basis of the legal action of a defined benefit and serve as evidence of the contractual agreement or partial performance of a contract. Stamp paper is required for all kinds of chords and on this blog we will talk about relevance in real estate. Like contract law in most countries, the Indian Contract Act of 1872 considers that all agreements that meet the essential requirements of free consent, legitimate consideration and lawful purpose are valid and applicable. It is important to note that even oral agreements, which constitute a wide range of contracts in India, are valid contracts under the law, provided they fulfill the essential elements of a contract.