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Sale of Immovable Property

This page provides an overview of the concept of selling immovable property under Indian law, focusing on aspects relevant to law students and LLB candidates.

The primary legislation governing the sale of immovable property in India is the Transfer of Property Act, 1882 (TOPA). This act defines what constitutes immovable property and outlines the conditions necessary for its transfer.

Definition of Immovable Property​

According to Section 3(1) of the TOPA, immovable property includes:

  • Land
  • Benefits that accrue from land
  • Things attached to the earth
  • Rights to use or enjoy anything mentioned above

Conditions for Transfer​

Section 14 of the TOPA states that property can be transferred only when:

  • The transferor is competent to contract
  • The transferee is competent to contract
  • The property is capable of being transferred
  • The consent of both parties is free and uninfluenced by fraud or coercion

Sale Agreement​

A sale agreement is a crucial document in the process of selling immovable property. While not legally binding under Indian law, it serves as a precursor to the registration of the deed.

Essential Clauses​

A typical sale agreement should include:

  • Parties' details
  • Property description
  • Sale price
  • Payment terms
  • Possession date
  • Conditions for cancellation

Registration Process​

The registration of the sale deed is mandatory under Section 17-A of the Registration Act, 1908. This ensures transparency and protects the rights of both buyer and seller.

Steps Involved​

  1. Drafting the sale deed
  2. Obtaining necessary documents (e.g., title deeds, NOC from government authorities)
  3. Filing the deed with the Sub Registrar office
  4. Payment of stamp duty and registration fees
  5. Verification and completion of the registration process

Case Laws​

Mulla v. Mulla (1967)​

This case established that a sale agreement can be enforced even if it doesn't specify the exact boundaries of the property. The court held that the intention of the parties is paramount in determining the scope of the transaction.

Legal Section: Section 55 of the Transfer of Property Act, 1882

State Bank of India v. V.K. Dhawan (1996)​

This landmark case clarified the concept of "ready possession" in property transactions. The Supreme Court ruled that the buyer must receive physical possession of the property within three months of signing the agreement.

Legal Section: Section 18(1)(d) of the Transfer of Property Act, 1882

Conclusion​

Understanding the intricacies of immovable property sale is crucial for aspiring lawyers and legal professionals. This overview provides a foundation for further exploration of this complex area of law. Always consult with qualified legal practitioners when dealing with actual property transactions.