Advance Agreement For Sale Of Land

In the future, a sale agreement is to be promised that the property will be transferred to the rightful owner, while the value of the sale is the actual transfer of the buyer`s property. Advance payment in a real estate agreement is very common. Just to be clear that I`m not referring to advance or token money to launch a real estate market. It is, must pay a symbolic money or an advance, otherwise there is no financial commitment from the end of the buyer to conclude the real estate agreement. The quantum of money tokens I discussed in my article on the same topic and can vary from base to base. In the idealistic scenario, the buyer, after payment of the money from the tokens, should make a residual payment only at the time of the real estate registration. Unfortunately, we do not live in the idealistic world. In addition to token money, sometimes the seller/bank ask for an additional prepayment in a real estate deal under different minds. The Supreme Court of India in 2012, in the case of Suraj Lamp - Industries Ltd (2) v.

State of Haryana, while dealing with the validity of the sale of real estate by proxy, has as a sub: the deed of sale is the most important legal document by which a seller transfers his property right to the buyer, who then acquires the absolute ownership of the property. The rules on stamp duty and registration fees vary from state to state. In some countries, you can buy stamp papers for stamp duty before registering the property register. The problem is that these papers are not transferable and are not refundable. The validity period is usually 6 months from the date of purchase. Only a few states offer the option of paying stamp duty and registration fees in advance. In short, TDS as a prepayment in a real estate market is a BIG NO, even if it is 1% (in the case of a resident Indian seller). You can ask the bank what the payment date should be in this case on Form 26QB or Challan 281? And who is responsible if the agreement is not reached? In some cases, the sub-registrar insists on a prepayment of TDS for the registration of real estate. TDS or tax deducted at source is the number 1 on the list, the banks in advance consisting of a real estate deal. If you resort to real estate credit, then bank/real estate credit providers will insist that you deposit the TDS in advance. The amount is huge for TDS on NRI under section 195. In almost 99% of cases, the bank insists that the buyer pay the TDS advance before paying the end of the bank and provide the payment receipt.

It`s pretty ridiculous. The rule is that TDS is only due at the time of payment. How can you force a buyer to deposit TDS in advance? The example above was an operational side effect of advance in a real estate business. Now the question of millions of dollars is whether God forbids and after payment payment of TDS payment of the agreement does not pass. How will the buyer recover 20.66 Rs in this case? No one is prepared to answer the same thing. In a practical case, one of the blog readers lost in a similar scenario 15L Rs.

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