This absolute rule is subject to the exception of Section 53A of the Transfer of Ownership Act. Section 53A provides that the seller has no right to disturb the purchaser`s possession if the purchaser has entered into possession of the property that is the subject of the transfer, while fully acquiring its portion of the contractual obligation. It should be noted that Section 53A provides the proposed purchaser with a shield against the seller and prevents the seller from disrupting the purchaser`s property, but it does not cured the buyer`s property. The property`s ownership remains in the hands of the seller. Clearly, these lawsuits are increasing and delaying in litigation and additional business costs, so it is always advisable to enter into agreements on stamp paper by paying the necessary obligation. A purchase agreement is an agreement to sell a property in the future. This agreement sets out the conditions under which the property in question is transferred. The Indian Registration Act provides for the registration of documents and thus records the contents of the document. Registration is necessary to preserve evidence and titles. There are certain agreements mentioned in Section 17 of the Indian Registration Act, which must be forcibly registered and therefore cannot be made without stamp paper. Some of them, as lawyers, often ask us whether agreements that are not made on stamp paper are invalid and unenforceable.
The answer is a simple “NO.” Agreements can be made either on a stamp paper or in a non-buffer document. While agreement has been reached on a document without stamps, certain legal aspects must be respected. This article establishes the validity of unstamped agreements and delves into the legal and technical consequences of unmarked agreements. The Indian Stamp Act, 1899 deals with the registration of agreements/documents in India. The stamp of agreements and documents is desirable because it guarantees legality and validity, applicability and admissibility in the courts, since such agreements can be registered under the 1908 Registration Act, which guarantees its applicability. It is valid, but the value of the stamp paper must be proportional to the value of the plot. You can pay for the undervalued stamp paper later if you have discovered that the stamp paper in question was undervalued. You need a letter from the seller`s mortgage bank. In this letter, it should be said that the bank will unlock the original real estate securities after finalizing the full and final account of the seller`s loan outstanding.