Un-Registered Document to sell

Un-Registered Document to sell

Under section 9 of the transfer of the property Act 1908, documents of agreement to sell does not create any legal title but creates a right to obtain another documents for example registered sale deed. Agreement to sell by itself cannot confer any title on the vendee because the same is not a title Deed. Agreement to sell does not require compulsory registration as held by Hon’able Supreme Court in case of Muhammad yousuf versus Munawar HUSSAIN and five others reported in 2000 SCMR 204 which is as under:

“In this view of the matter the right course for the petitioner would have been to institute a suit for specific performance if at all such agreement was executed. The agreement to sell by itself cannot confer any title on the vendee because the same is not a title deed and such agreement does not confer any propriety right and thus it is obvious that the declaratory decree as envisaged by section 42 of the specific Relief Act cannot be awarded because declaration can only be given in respect of legal right or character. The only right arising out of any agreement to sell is to seek its specific performance and in case the vendee has been put in possession the same is protected under section 53-A of the Act.”