Can a property be sold without registration?


The fact is, failure to register a property puts you in high risk. Without Registration you have no legal right over the property even if you have cleared all your dues with the builder. You need to register your property as soon as you have paid the full amount for your property and other charges to the builder.

Stamp duty and registration charges are paid to the government and the property is registered in the name of the owner. This is how ownership right is created for a property. Without registration, a buyer has no legal right over the property so, one cannot sell it to anyone under the Transfer of Property Rights Act.

Wherever one cannot register his property and wants to sell it to some other person, he can approach his builder and request him to make changes in the Builder-Buyer Agreement and transfer the ownership rights in the name of the new buyer. The builder levies processing charges and deducts certain fees and allows the new buyer to register the property in his name.

This way, the original owner can sell his property to the new buyer even before registration is done. The builderÕs consent is required as he holds the property rights till it is registered in the buyerÕs name. Payment terms have to be discussed with other party and to be set amicably keeping in mind the situation of all parties.

Reference: Section. 17, Registration Act, 1908



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