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Property Law Project
Property Law Project
MS PALLAVI MISHRA
ASSISTANT PROFESSOR, SYMBIOSIS LAW SCHOOL, NOIDA.
AUGUST 2018
CERTIFICATE
The project entitled Sale Deed Of Non-Agricultural Land At Ncr Jurisdiction Of Worth 88,
00 000/- Eighty-Eight Lakhs Only/-) submitted to the Symbiosis Law School, NOIDA for
Property Law as part of internal assessment is my original work carried out under the
guidance of MS PALLAVI MISHRA from JULY 2018 TO DECEMBER 2018.
The research work has not been submitted elsewhere for award of any publication or degree.
The material borrowed from other sources and incorporated in the work has been duly
acknowledged. I understand that I myself could be held responsible and accountable for
plagiarism, if any, detected later on.
Date:
ACKNOWLEDGEMENT
I would like to firstly thank Ms Pallavi Mishra for giving me the opportunity to work on this
specific project. It has enabled me to learn and understand the subject better. I would also like
to thank Dr C.J Rawandale the director of Symbiosis Law School, Noida, for giving me the
opportunity of learning in Symbiosis. Lastly, I would like to thank my friends and family for
the constant support and help they have provided me with.
PROBLEM
The problem which has been assignment to me is ‘Sale deed of Non-Agricultural Land’, the
said deed is worthy of Rs 88,00,000(Eighty – Eight Lakhs). Mr Adhiraj is the seller of the
land located in Asiad Village. The brief description of the property is that it is located in The
Property Is Located in The Frontal Part of The Governmental Colony of Asiad Village. The
Property Is Based in The Commercial Complex of The Same and All Restaurants and Cafes
Are Located in The Same Area. The Area Has Been Fenced by Three Sides One Side Having
a Wall. It Also Has an Open Area Which Can Be Used as Open Space or Terrace Garden.
The Land Was Initially Used as A Restaurant but Is Now Vacant. The Approximate Area of
Land Is 185 Square Meters (1991 Square Foot).
The buyer of the said property is Mr Arjun Verma, and has agreed on the terms and
conditions of the sale deed, and is a willing party. He will be paying half the said
consideration amount of 88,00,000 in Demand Draft and half of the amount will be paid by
cash.
The property is located in the South District of Delhi, with the sub-registrar being Hauz
Khaz. The property is being sold to a party who is a male, therefore, percentage of stamp duty
on the said property will be at ‘6% of 88,00,000, which is 5,28,000 (Five Lakh Twenty- Eight
Thousand). The land/floor value of the property is 42,95,70,000. Stamp duty is calculated to
be Rs 2,36,26,350, and the registration fees is 42,95,700. The land usage is commercial in
nature and is a non agricultural plot. Land rate is Rs 7,74,000.
A sale deed or conveyance deed is a document which is drafted at the time of sale of the
property. The signing of deed signifies that the process of sale has been completed. The seller
transfers the right of ownership to the buyer through sale deed. As soon as the document is
signed, the buyer becomes the complete owner of the property. Usually, a sale deed is
executed only when both sellers and buyers are fully satisfied and are ready to comply with
the terms and conditions as mentioned in sale agreement. The sale deed document is a valid
proof of ownership of the immovable property with all relevant information about the buyer.
The sale deed is drafted on a non-judicial stamp paper of value as set by the state government
in which the property transaction is taking place. Every state has predetermined value of
stamp paper that are used for drafting immovable property. Also, any outstanding amount can
be paid through a challan or stamping for legalising the sale deed. The deed contains the
following information
TRANSFER OF PROPERTY ACT, 1882
The mention of ‘Sale Of Property’ has been described in the Transfer of Property Act, 1882,
it is basically stating what a sale of property is, how a sale can be made, and what are the
basic essentials of a valid sale of property.
The Parties, that is the seller and the purchase, must be competent. They are also
called vendor and vendee, respectively. They must be competent to contract and must
be of sound mind and have attained the age of majority.
There must be a subject-matter of sale. Transfer of Property Act deals with sale of
immovable property.
Immovable property may be either tangible, such as land, house, things attaches to earth, etc.,
or it may be intangible immovable property, such as right of ferry or fisheries, or right to a
mortgage debt etc. But the immovable property must be in existence on the date of execution
of sale.
Price or money consideration: Price or value of a sale deed is an essential ingredient
of a sale. A sale is a transfer of ownership in exchange of money is essential.
Conveyance—In sale, property must be transferred from seller to purchaser.
According to Section 54 there must be a registered conveyance in the case of tangible
immovable property of the value of Rs. 100 and upwards; or a reversion of an
intangible thing of any value.
In case of tangible immovable property of a value less than Rs. 100, there must either be,
a registered conveyance, or
delivery of property.
THE REGISTRATION ACT, 1908
As per Section 17 of the Registration Act, 1908, all transactions that involve the sale of an
immovable property for a value exceeding Rs 100, should be registered. This effectively
means that all the transactions of sale of immovable property have to be registered, as no
immovable property can be purchased for merely Rs 100. Additionally, all transactions of gift
of an immovable property, as well as lease for a period exceeding 12 months, are also
mandatorily required to be registered. Failure to register the purchase agreement of a
property, could put you at a huge risk. Any document that is mandatorily required to be
registered but is not registered, cannot be admitted as evidence in any court of law.
Section 17 basically deals with the documents which are related to a sale, it reads as follows
(d) leases of immovable property from year to year, or for any term exceeding one year, or
reserving a yearly rent;
[(e) non-testamentary instruments transferring or assigning any decree or order of a Court or
any award when such decree or order or award purports or operates to create, declare, assign,
limit or extinguish, whether in present or in future, any right, title or interest, whether vested
or contingent, of the value of one hundred rupees and upwards, to or in immovable property:]
Provided that the 25[State Government] may, by order published in the 26 [Official Gazette],
exempt from the operation of this sub-section any lease executed in any district, or part of a
district, the terms granted by which do not exceed five years and the annual rents reserved by
which do not exceed fifty rupees.
[(1A) The documents containing contracts to transfer for consideration, any immovable
property for the purpose of section 53A of the Transfer of Property Act, 1882 (4 of 1882)
shall be registered if they have been executed on or after the commencement of the
Registration and Other Related laws (Amendment) Act, 2001 and if such documents are not
registered on or after such commencement, then, they shall have no effect for the purposes of
the said section 53A.]
TABLE OF CONTENTS
SERIAL NUMBER TITLE PAGE NUMBER
1. COVER PAGE 1
2. CERTIFICATE 2
3. ACKNOWLEDGEMENT 3
4. APPENDIX 5
5. PROBLEM 6
6. BACKGROUND 6
7. SCREENSHOT OF WEBSITE 7
8. TRANSFER OF PROPERTY 8
ACT
11. SCHEDULE 10
Between :
Mr Adhiraj Singh
S/O Mr Deepak Singh
Aged about 25 years,
Residing at :
Herein after called the first party (which term shall mean and include his heirs, legal
representatives, executors, administrators) on one part and
Mr Arjun Verma
S/O Suresh Verma
Aged about 29 years,
Residing at :
Herein after called the second party (which term shall mean and include his heirs, legal
representatives, executives, administrators).
WHEREAS the First Party, is the sole and absolute owner of the property bearing location of
the property being ‘Plot Number 34, Asiad Village, New Delhi (South Delhi district). Having
possession of property by gift deed by the owners mother namely Mrs Tanya Singh, through
a registered gift deed.
WHEREAS the first party is intended to sell the said scheduled property because of a
financial necessity and the second party intended to purchase the scheduled property for a
consideration of Rs 88,00,000. (Rupees Eighty – Eight Lakhs Only).
1. The first party assures the second party that the scheduled property is free from
encumbrance and he is in peaceful possession and enjoyment of the same, that he
holds no criminal records by himself or in association with the land scheduled.
3. The second party has agreed to purchase the said property for a consideration of Rs
88,00,000/- (Rupees Eighty – Eight Lakh Only), today he has issued a DD bearing no.
2348, for a sum of Rs 44,00,000 (Fourty – Four Lakh Only) drawn on the bank called
‘United State Bank Of India’ and Cash Of Rs 44,00,000 (Fourty – Four Lakh Only)
in the favour of the first party and handed over to the first party for which he has
accepted and acknowledged the receipt of the DD and of the cash Rs 44,00,000. Since
the consideration amount has been covered half by Demand Draft and half by Cash,
no due amount remains.
4. The first party assures the second party that he will produce and hand over all
necessary original documents and original identification along with two passport sized
photographs for verification, the said will be produced for the scheduled property and
will execute a proper and legitimate registered sale deed in the name of the second
party or any person requested by the second party within three months from date of
agreement. Particularly, in the above property, registration fee is for the sum amount
of Rs 42,95,700 (Fourty Two Lakhs, Ninety Five Thousand and Seven Hundred
Rupees Only).
5. The first party agrees that in the event of not registering the said amount of Rs
42,95,000 (Fourty Two Lakhs, Ninety Five Thousand and Seven Hundred Rupees
Only), the second party is entitled to take any legal action against the first party.
6. The first party covenants with the second party shall indemnify the second party
against all loses or damages which the second party may incur or sustain on account
of breach of the covenants of any one or more of them.
SCHEDULE OF PROPERTY
All that piece and parcel of the property bearing item number 22, item number 12. Property
number 34, Located as ’Plot Number 34 Asiad Village in the City of New Delhi, District
South and registrar being Hauz Khaz South Delhi district in the state of Delhi.
IN WITNESS WHEREOF the parties herign have signed this agreement as VENDOR(FIRST
PARTY) and PURCHASER (SECOND PARTY) . In witness where of the VENDOR and the
PURCHASER have set their signatures on the 22nd August 2018
Witnesses:
VENDOR
1) Mr Subhash Singh
2) Mr Vineet Kapoor
THE PURCHASER
APPENDIX
BOOKS
INTERNET SOURCES