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Registration of Sale Agreement

Once a buyer has found the property that he wants to buy,  it must be ensured that the vendor cannot sell the property to another purchaser.  For this purpose, the buyer and the vendor must sign a contract that binds both the parties. This document is called a Sale Agreement or an Agreement to Sell. 

An Agreement to Sell with delivery of possession of property is a compulsorily registerable document and an unregistered Sale Agreement has no value in the eyes of law. The Agreement must be registered in the office of the Concerned Sub Registrar within whose jurisdiction the property is situated after payment of applicable Stamp Duty and registration fee.

While a Sale Deed is used for the transfer of ownership of freehold properties, a Sale agreement is generally used for the transfer of leasehold properties such as Flats, Plots, Shops etc. allotted by the DDA, L&DO, MCD etc.

After the judgement of the Hon’ble Supreme Court in the Suraj Lamp Case, the registration of Sale Agreement had been stopped by Delhi Government, but in November, 2014, it had been decided to once again allow its registration  along with GPA in the Sub Registrar Offices for the transfer of leasehold properties in Delhi.

Till now, the owners of apartments and offices in multi-storied buildings in areas such as those in Connaught Place, Barakhamba Road, Nehru Place, Netaji Subhash Place, Bhikaji Cama Place, Saket, Janak Puri, Rajendra Place, Pusa Road, Rohini, Dwarka etc were not able to get their lease deeds registered and obtain loans against such property due to the absence of registered builder buyer agreement. But now, the owners of such property can get the Builder Buyer agreement stamped/ registered in the Sub Registrar office after paying the applicable Stamp Duty.

We also provide services for the impounding and stamping of unregistered / notary agreement to sell and Builder Buyer agreements executed in the years 2001, 2002, 2003 or 2004  by getting it impounded from the Collector of Stamps / SDM office for freehold conversion of Leasehold DDA flats or Plots.

Stamping & Registration of Agreement to Sale in Delhi

Following are some of the Important Points to note in relation to Registration of Agreement to Sell  :

1. Stamp Duty equivalent to that payable on the registration of a Sale deed i.e. 6% in case of men and 4% in case of women needs to be paid for the registration.

2. Registration fee shall be payable @ 1% of the value of the Property as per the Circle Rate.

3. Both the parties, and two witnesses alongwith their identification documents need to be present during the presentation of the agreement of sale before the Sub – Registrar.


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