Selling an unregistered property meaning one for which the sale deed has not been registered is legally problematic and extremely risky. So,can an unregistered property be sold? Under the Transfer of Property Act, 1882, ownership of an immovable property cannot be transferred without a registered sale deed, especially if the property value exceeds Rs. 100.
The Registration Act, 1908 mandates that transactions involving immovable property of this value must be formally registered; otherwise, the agreement is considered legally ineffective and non-binding.
Even if the buyer has paid the full price and taken possession under an unregistered agreement, their ownership isn't legally validated though Section 53A of the Transfer of Property Act may protect them from being evicted, it does not grant title to the property.
Courts have explicitly ruled that unregistered agreements even if possession is delivered do not convey ownership or create enforceable title.
Due to these legal weaknesses, such agreements are not admissible as evidence to assert ownership, leaving buyers exposed to disputes, fraud, or claims by competing parties.
Furthermore, unregistered properties pose practical difficulties; banks generally reject them for home loan approvals, and subsequent sale or transfer becomes cumbersome or near-impossible.
I hope this was informative!
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Can an Unregistered Property be Sold?
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2025-08-27T15:27:38+00:00 2025-08-27T15:27:40+00:00Comment
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