Legal Advice

Can I claim anything on the basis of unregistered sale agreement?

Shivendra Pratap Singh


High Court Lucknow

Civil Law | Property

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Question asked on: 28 Apr, 2022

Question: Unregistered agreement of Rs 60.00 lakhs on 11/01/2022 owner sale the property. Owner has signed an agreement and promised to sell the land to me. That agreement is unregistered but written on stamp paper of rupees sixty. Can I claim anything on the basis of unregistered sale agreement? Can we file the civil suit and what is the remedy?

Asked from: Madhya Pradesh

You cannot enforce this unregistered agreement. Because this document is not conferring any right in your favour. Therefore, you cannot stop the owner from selling this land to another person. 

The court will not admit this unregistered agreement for granting injunction because this document has no legal value in respect of your right or title in the property. 

But it has a legal value for collateral purposes. The owner cannot deny that he signed this unregistered agreement. The court can admit this document to prove that: 

  • Parties were casually agreed to transfer this land.
  • The parties agreed to perform some acts on certain terms and conditions.
  • Owner has received earnest money (if mentioned in the agreement).

Therefore, you can file a civil suit for recovery of money if you have paid in the pursuance of that agreement. In Fide Ali v. Zaffar Hussain AIR 2021 MP 8 the Madhya Pradesh High Court has held that:

Suit for recovery of money advanced under sale agreement….that suit is not for specific performance of contract or for declaration of title, That agreement can be considered in evidence for collateral purpose. Sale agreement to that extent is admissible in evidence. 

Hence, you can file a civil suit if you have paid earnest money to the owner of the land. You cannot claim any right in the property on the basis of unregistered agreement.