When it comes to buying or selling a property, signing a sale agreement is necessary to establish the terms and conditions of the transaction. However, not all sale agreements are registered with the government. Although it may seem like an unnecessary step, there are several advantages to having an unregistered sale agreement that should not be overlooked.
Firstly, an unregistered sale agreement serves as evidence of the transaction taking place. It outlines the terms and conditions of the sale, including the price, payment schedule, and possession date. In case of disputes or disagreements, this document can be used as legal evidence to settle the issue in court. Additionally, having an unregistered sale agreement ensures that both parties are aware of their responsibilities and obligations, reducing the chance of future conflicts and misunderstandings.
Secondly, an unregistered sale agreement can be used as collateral. If the buyer needs to finance the purchase, the unregistered sale agreement can be used as security against the loan. This means that the buyer can obtain a loan based on the agreement, without having to register the property with the government or go through a lengthy legal process. This can be especially beneficial in cases where the buyer needs quick funding or has a low credit score.
Thirdly, having an unregistered sale agreement can save both parties time and money. Registering a property involves paying registration fees and taxes, which can be a significant expense. Additionally, registering a property can be a time-consuming process that involves submitting documents and waiting for approval. By having an unregistered sale agreement, both parties can avoid these expenses and save time spent on registration procedures.
In conclusion, having an unregistered sale agreement can be a valuable asset in the property buying and selling process. It serves as legal evidence of the transaction, provides collateral for financing, and can save both parties time and money. As with any legal document, it is important to consult with a qualified legal professional to ensure that the agreement is valid and legally binding.