Sale Deed Executed With A Promise To Pay Price In Future

Section 54 of the Transfer of Property Act defines a “Sale “: Sale” is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.

This provision makes it clear that a sale of an immovable property has to be for a price.

The price may be payable in future. It may be partly paid and the remaining part can be made payable in future.

In Kewal Krishan v. Rajesh Kumar 2021 SCC Online SC 1097; the Supreme Court observed that the payment of price is an essential part of a sale covered by section 54 of the TP Act. “If a sale deed in respect of an immovable property is executed without payment of price and if it does not provide for the payment of price at a future date, it is not a sale at all in the eyes of law. It is of no legal effect. Therefore, such a sale will be void. It will not effect the transfer of the immovable property.”, it was held.

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