Registration of Agreement to Sell

The Registration Act, 1908 was amended effective September’2011 by adding a new Section 17(1-A) in the Registration Act, which has made Agreement to Sell compulsorily registrable in all cases where possession of the immovable property has been handed over to the vendee/buyer. Section 49 of the Registration Act states that in the absence of the registration of an agreement to sell, the right and interest in the immovable property which are intended to be passed on by the proposed seller to the proposed buyer through the agreement to sell would not so pass. Non registration of an agreement to sell practically makes it redundant. Further, it shall also not be received as evidence of any transaction affecting such property.