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A ‘Contract for the sale of immovable property’ refers to a contract by which sale of particular property takes place on the terms settled between the parties.

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It is always recommended that the agreement to sell must be drafted in details without leaving anything to chance. One can safely say that by not getting a written document for sale of immovable property, purchaser takes a serious risk, because normally there appears no reason for non-execution of an agreement for sale. 

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Registration and Other Related Laws (Amendment) Act, 2001, enforced since 24th September, 2001 has inserted section 17(1A) to the Registration Act, 1908, which provides that all documents executed on or after 24th September,2001, which are in the nature  of agreement to sell, under which consideration has been paid and possession of property delivered as per section 53A of Transfer of Property Act,1882 shall require compulsory registration

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If those documents are not registered, then the transferee would not be entitled to protection provided under section 53A of Transfer of Property Act, 1882.

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In sum, agreement to sell without delivery of possession would not require compulsory registration, but the one, coupled with payment of consideration, whether partly or in full, and delivery of possession would require compulsory registration. 

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Proper stamp-duty payable for agreement to sell without delivery of possession of property is governed by Article 5 of Schedule I to Indian Stamp Act, 1899.

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If any agreement is coupled with delivery of possession, then it would be governed by section 53A of the Transfer of Property Act and would require stamp duty to the tune of ninety per cent of what would be payable on a regular conveyance (Sale-Deed) as per Article 23A of Schedule I of Indian Stamp Act, 1899.

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In the National Capital Territory of Delhi, stamp duty on an agreement to sell without delivery of possession, is just Rs. 50 

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In gift, no condition is allowed to be attached as in the case of a gift, the donor is divested of all his interests in the property and the general rule is that a gift to which a condition is attached, the gift is valid, the condition is void.

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The motive or the purpose of making a gift should not be confused with the consideration which is the subject-matter of gift. Love, affection, spiritual benefit and many other factors may enter in the intention of the donor to make a gift but these final considerations cannot be called or held to be legal considerations as understood by law.

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Another element of gift is a “donee” who accepts the gift. Gift must be accepted by the done or somebody else on his behalf and unless a gift is accepted, the gift is not complete and there must be something to show that the gift stands accepted, may be by implication.

Gift of an immovable property must be made by a registered instrument- A document creating rights of immovable property must be registered.

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Other relevant factors which are vital for determining the real market value of an immovable property are the consideration whether the property is a lease-hold or a free-hold property, for what purpose the land can be used, whether the building bye-laws are applicable or not, what is the floor area ratio permitted for the particular property, what is the nature of soil, size of plots, what are the statutory restrictions in the transfer of the particular immovable property, whether the property is occupied by the seller or is occupied by the tenants, and such like factors.

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No thumb rule can be provided which may be reasonably applicable in all circumstances. Last but not the least, the political situation in the country and also international political situation very seriously affects the market value of the immovable property.

 

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Deed Registration, Mutation, freehold Conversion services in Delhi