Agreement To Sale As Per Rera
A contract for the sale of real estate, which provides that the sale takes place under the conditions agreed between the parties (agreement for the sale or ATS), does not in itself create any interest in the property or burden it. Section 54 of the Transfer of Property Act, 1882 (TPA) defines a sale as a transfer of ownership at a price and provides that, in the case of real estate with a value greater than 100 (cent), the sale may only be made through a registered instrument. It should be noted that, although section 54 provides for the mandatory registration of the instrument of sale, i.e. the instrument for the sale of immovable property, it does not require registration of the ATS. A sales agreement is an agreement by which the seller promises to transfer future ownership of the property to the buyer under certain conditions. Therefore, we can affirm that the provisions of the RERA Act 2016 only take precedence over the Registration Act 2016 with regard to the sales agreement. To understand the conflict between RERA and Registration Act, it is important to understand the difference between the sales agreement and a sales document. The ownership of real estate should be clear and marketable, and it is said that as such it is only at the time of execution of the deed of sale. However, in practice, buyers perform the sales contract as a preventive measure, although they are aware that it does not create title to a property. A deed of sale is considered an authentic deed and also creates a clear title to the property, since it is a document that must be identifiable in accordance with Sec 17(1) of the Registration Act 1908.
However, in accordance with section 13 of the RERA Act 20161, a contract of sale must be registered. However, this is not the case with the Registration Act 1908. Therefore, the validity of the sales agreement always becomes an unresolved conflict. It must therefore be concluded that the RERA Act 2016 classified the Registration Act for the purposes of the sale agreement, given that the sale agreement does not contain a clear title, but can be applied in court in accordance with the provisions of the RERA Act 2016. In addition, an ATS does not require mandatory registration in accordance with section 17 of the Registration Act, 1908 (Registration Act). This can be inferred from the fact that the list of instruments subject to registration in accordance with Article 17 does not contain an ATS. In any event, Article 17(2) excludes certain documents, including an ATS, from the applicability of Article 17(1)(a) and Article 17(1)(b). An ATS is excluded as a class of documents pursuant to Article 17(2) v. In addition, the Explanatory Note to Section 17 also provides that a document that is provided or used to conclude a contract for the sale of immovable property is not considered to be subject to registration or has never been necessary.
If the sales contract is unfounded, another question arises as to whether the buyer can remedy it in the event of a breach of the sales agreement. This response was provided in accordance with Article 18 of the RERA Act, which stipulates that the developer must compensate the buyer if he is unable to complete the project and hand over ownership of the property within the time limit set by the sale or purchase agreement. . . .