“Fixed assets may only be transferred by means of a deed of transfer (deed of sale) duly stamped and registered in accordance with the law. We therefore reiterate that fixed assets can only be transferred and transferred legally and legally by means of a registered deed of transfer. A contract of sale is a contract for the sale of real estate in the future. This agreement defines the conditions under which the property is transferred. The Transfer of Property Act, 1882, which governs matters relating to the sale and transfer of immovable property, defines the contract of sale or a contract of sale as follows: After the transfer of property Act, a contract of sale, with or without ownership, is not a transfer. Section 54 of the Transfer of Ownership Act provides that the sale of immovable property may be made only by a registered instrument and that a contract of sale does not generate interest or charges for its property. By registering the property at the circular rate or guidance value, you can save significant amounts of stamp duty and registration fees. If you register the property @ 1 Cr, you pay 6 lakes as stamp tax and 1 lake as registration fee in Delhi, therefore the total payment is 7 lac for registration. In cases where you have purchased and taken possession of real estate under a contract of sale, title to the property remains in the hands of the developer, unless a certificate of sale has been executed a posteriori and registered under the Indian Registration Act. Thus, it is clear that a title to immovable property can only be transferred by a deed of sale. In the absence of a duly stamped and registered deed of sale, the buyer of the property does not have the right, title or interest in a property.
`Any contract of sale (agreement of sale) which is not a registered deed of assignment (deed of sale) would not satisfy the requirements of sections 54 and 55 of the Transfer of Ownership Act and would not confer title or interest in immovable property (with the exception of the limited right granted under section 53A of the Transfer of Ownership Act).` The only downside to registering real estate at Guidance Value/Circle Rate to save stamp duty is that some mortgage providers like SBI only offer a housing construction loan of up to 80% of the value of the sales contract and not the sale value, for example.B. In this case, if the buyer benefits from a housing loan from SBI, SBI offers a maximum loan of 53.6 lakes, or 80% of 67 lakes (excluding stamp duty and registration fees). While in the case of other lenders such as HDFC, the loan represents 80% of the value of the sales contract, or 80% of 1 Cr = 80 lakes as a mortgage. Remember here that both parties must comply with the conditions set out in the sales contract. Any party that fails to comply with any of the conditions set out in the agreement may be brought before the courts if the other party so wishes. All parties concerned should also ensure that this document can be invoked as legal evidence before the courts of the law and that all those who have agreed to comply with the conditions are legally bound by it. What the sales contract creates is a right for the buyer to purchase the property in question under certain conditions….