Supreme Court Ruling On Sale Deed And Agreement For Sale
«The applicants made a case of alleged non-payment of part of the sales consideration in the complaint and prayed to facilitate the cancellation of the balance of sale for this reason. Section 54 of the Property Transfer Act, 1882, stated: «54. The sale is set. — «The sale» is a transfer of ownership against a promise paid or promised or partially paid and partial promises. The definition of «sale» indicates that a transfer of ownership must take place from one person to another, that is, the transfer of all the rights and interests of the property that the purchaser held to the purchaser. The seller cannot retain some of the shares or property rights, otherwise it would not be a sale. The definition also specifies that the transfer of ownership must be at a price «paid or promised or partially promised and partially promised». Price is therefore an essential part of the sale transaction. In Vidyadhar v.
Manikrao-Anr (1999) 3 CSC 573, the Tribunal found that the terms «promised or partially promised party» indicate that the actual payment of the entire price at the time of the sale is not a sine qua non condition for the conclusion of the sale. Even if the total price is not paid, but the document is executed and subsequently registered, the sale would be complete and the title would be passed on to the purchaser as part of the transaction. Failure to pay part of the sale price would not affect the validity of the sale. Once the title has already elapsed, even if the sale of balances is not paid, the sale could not be cancelled for this reason. To constitute a «sale,» the parties must intend to transfer ownership of the property to the agreement to pay the price either to Praesenti or in the future. The intention is to calculate from the recitals in the sales record, the conduct of the parties and the evidence to be recorded. Given the law of the Court of Justice, even if the applicants` allegations that the entire consideration of sale was not actually paid, this cannot be a reason to quash the termination of the sale. Applicants may have other avenues of recourse to recover the consideration for the balance, but may not benefit from the exemption from the cancellation of the registered loan.» In cases where you have acquired and taken possession of a property under a sale agreement, the title to the land will still remain with the developer, unless a sales record has been subsequently executed and registered under the Indian Registration Act.