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Unregistered Agreement of Sale

When it comes to real estate transactions, an unregistered agreement of sale is a term that often comes up. In simple terms, an unregistered agreement of sale refers to a contract between a buyer and a seller for the sale of a property; however, this contract has not been registered with the appropriate authorities.

In most cases, an agreement of sale needs to be registered with the concerned sub-registrar’s office to make the sale legally valid. However, if the unregistered agreement of sale is executed on stamp papers, it still holds some legal value. The agreement serves as proof of transfer of ownership, as well as the price and terms of the sale.

Now, you might be wondering why some people choose to go for an unregistered agreement of sale instead of registering it. One of the reasons is that property registration involves paying a considerable amount as stamp duty and registration fee which can be quite expensive. Additionally, the registration process may take longer which might not be desirable for some parties.

However, it is important to note that an unregistered agreement of sale has its risks. If the buyer changes his mind and does not purchase the property, the seller cannot take any legal action against the buyer. Similarly, the buyer is also at risk of losing the money he has invested in the property. Moreover, since the agreement is not registered, it does not confer any legal ownership rights to the buyer.

Therefore, it is always advisable to register the agreement of sale to prevent any legal issues from arising in the future. Registration of the agreement of sale ensures that the ownership rights of the property are transferred to the buyer and the seller receives the sale proceeds in a lawful manner.

To register the agreement of sale, both the buyer and the seller need to visit the sub-registrar’s office and submit the requisite documents along with the registration fees. The sub-registrar then verifies the documents and registers the agreement of sale.

In conclusion, while an unregistered agreement of sale might seem like an easy and cost-effective option, it does come with its own set of risks. It is always advisable to register the agreement of sale to ensure a smooth and legally valid real estate transaction.

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