Real estate laws and numerous Supreme Court decisions have made it mandatory to register the purchase contract, i.e. the builder-buyer contract, but some developers have managed to find loopholes in the legal provisions and exploit home buyers throughout the NCR. It is common for a purchase contract to be valid for three years if time is not the essence of the contract. „A contract for the sale of immovable property is a contract under which the sale of that property is made on the terms agreed between the parties“ – Article 54. Article 54 further states: „It does not in itself constitute an interest or burden on such property.“ Well, the importance of due diligence when it comes to property-related documents becomes pretty clear when we review the incidents mentioned below. It is important to note that if your name is not mentioned in government records as the owner of a particular property, proof of ownership may not be possible. For this reason, registering a property is a must for the buyer. 1) It doesn`t hurt to register a purchase contract for sale Registering a purchase contract is a smart decision as it is also supported by various laws such as the Indian Contracts Act, the Specific Relief Act, and various housing laws enforced by many states. The Uttar Pradesh Apartments Act 2010 also requires that all sales contracts must necessarily be registered in UP.

According to the Indian Registration Act of 1908, any agreement to transfer shares in a property of more than one hundred rupees must be registered. So, if you have purchased a property under a purchase agreement without a subsequent appropriate deed of sale, you will not get any right or interest in the property that is supposed to be transferred under the purchase agreement. .