Supreme Court Clarifies Validity of Unregistered Agreements to Sell in Specific Performance Suits
Legal News Update | 24 August 2026
The Supreme Court has clarified the evidentiary position of an unregistered agreement to sell in litigation seeking specific performance, an issue with significant practical importance in property transactions.
Registration and an agreement to sell
An agreement to sell and a completed conveyance are legally distinct instruments. Registration requirements and the evidentiary consequences of non-registration must therefore be examined with reference to the nature of the document and the relief claimed.
Use in a specific performance suit
The statutory framework permits an unregistered document affecting immovable property to be received as evidence of a contract in a suit for specific performance in circumstances recognised by law. That does not mean the document itself operates as a registered conveyance transferring ownership.
Why the distinction matters
Property disputes often involve informal agreements, receipts and possession arrangements. Parties may incorrectly assume either that an unregistered agreement is completely useless or that it itself transfers title. Both propositions can be misleading.
Practical takeaway
Anyone relying on an agreement to sell should preserve the original agreement, payment evidence, correspondence, possession documents and notices demanding completion of the transaction. Registration and stamp-duty issues should be examined at the earliest stage.
Frequently Asked Questions
Does an unregistered agreement to sell transfer ownership?
An agreement to sell does not ordinarily operate as a completed conveyance of title merely because it records an intended sale.
Can it still be used in court?
Depending on the statutory conditions and the relief claimed, an unregistered agreement may be received as evidence of the underlying contract in a specific-performance proceeding.
Source discovery: LiveLaw reported the Supreme Court ruling on 24 August 2026. This article is independently written and does not reproduce the source report.