Once an agreement between a buyer and a seller has been made to enter into a property purchase contract, the process follows a specific pattern. The two parties get an initial contract drafted, laying out key details of the deal. Next, a second set of documents is drafted and executed to close this deal. The first set of documents is known as the agreement to sell while the second is known as the sale deed.

 

What is an agreement to sell?

An agreement to sell is a legal document that lays down the terms and conditions of a future property purchase. This document is drafted after the buyer and the seller reach an agreement to enter into a contract.

According to Section 54 of the Transfer of Property Act, 1882, a contract for the sale of immovable property defines that the sale of such property shall take place on the terms settled between the parties. However, the sale agreement does not create any interest in or charge on such property.

See also: What is sale deed? How is it different from agreement to sell?

 

What details are mentioned in the agreement to sell?

The following details are mentioned in an agreement to sell:

1. Name of buyer
2. Name of seller
3. Property details
4. Transaction value
5. Breakup of payment
6. Period within which the sale must be completed
7. Terms and condition of the sale
8. Responsibilities of the buyer
9. Responsibilities of the seller
10. Details of home loan

 

Is registration of agreement to sell necessary?

Just like the sale deed, an agreement to sell must be registered for legal validity. In case you sidestep this process, this document will not have any legal standing in the court of law, especially if a dispute arises in future.

An unregistered agreement to sell is not admissible as evidence in a permanent injunction suit, the Supreme Court ruled in an order delivered on September 23, 2022. The apex court has said that such a document can be used for collateral purposes but not as evidence in a suit seeking specific performance.

 

Can property be transferred with an agreement to sell?

According to a Bench of Justices Vikram Nath and Rajesh Bindal, “The agreement to sell is not a conveyance; it does not transfer ownership rights or confer any title.”

 

Stamp duty, registration fee on agreement to sell

Just like the sale deed, buyers have to pay stamp duty and registration fee to register agreement to sale. While some states charge the same stamp duty on sale deed and sale agreement, others charge a lower fee on the registry of agreement to sell.

 

News update

Sale agreement with minor not valid: Supreme Court

Contracts entered into by minors have no enforceability in the eyes of the law, the Supreme Court has reiterated. The apex court made this observation while upholding an order of the Madurai Bench of the High Court (HC) of Madras, in which the HC had said a sale agreement entered into a minor had no legal sanction.

For the uninitiated, the parties must be competent to contract for an agreement to become a contract under the provisions of the Contract Act, 1872. Under the law, the age of majority is a condition for competency.

While dismissing a plea by one Krishnaveni, the apex court said: “There is no dispute on the contention raised by the defendants in the suit that the appellant was a minor at the time of the said agreement dated 03.09.2007. Therefore, such contract with a minor, was rightly found to be a void contract by the High Court.

 

Agreement for sale sample

 

THIS AGREEMENT FOR SALE is made and executed on this         day of

                  month of                   year at              

 

BETWEEN Smt./Sri.                                                                     W/o. / Sri.  aged          years residing    at                                                          hereinafter called the “SELLER” (which expression shall mean and include her legal heirs, successors, successors-in-interest, executors, administrators, legal representatives, attorneys and assigns) of ONE PART.

 

AND

 

Smt./Sri.                                      W/o. / Sri.                                 aged     years residing at                                                            hereinafter called the “PURCHASER” (represented by his              as power of attorney holder) which expression shall mean and include his heirs, successors, executors, administrators, legal representatives, attorneys and assigns) of the OTHER PART.

 

WHERE AS THE SELLER is the absolute owner in possession and enjoyment of the ¹residential / Commercial property bearing No.                                                     measuring East to West                      feet and North to South         feet which is morefully         described in        the               schedule    hereunder and        hereafter called   the “SCHEDULE PROPERTY”.

 

²WHERE AS the schedule property is the self acquired property of Sri.                 vide registered Sale deed bearing No.   Volume No.      Page to                     dated                     registered at Sub-Registrar’s Office,                          . He having acquired the same without any aid or assistance from his family of any quarters/ built the schedule property entirely with his own earnings.

 

²WHEREAS     said                                      Smt./Sri.  bequeathed     the                    entire schedule property in favour of SELLER                 a will dated

               / a registered will bearing No.  Book III, Volume

Page         to              dated                                      registered         at      Sub-Registrar Office,                                    .

WHEREAS there are no encumbrances, liens, charges, Government dues, attachments, acquisition, or requisition, proceedings and whereas the SELLER has clear and marketable title to the Schedule Property and he/she has absolute power to convey the same.

 

WHEREAS    the         SELLER        being     in   need           of funds        for                  the purpose         of

has decided to sell the schedule property after obtaining consent of his wife/her husband, sons and daughters.

WHEREAS the SELLER offered to sell and transfer the schedule property to the PURCHASER                     for   a                         sale                         consideration  of                    Rs.  (Rupees                     only) and the PURCHASER herein has agreed to purchase the same for the aforesaid consideration on the following terms and conditions:

 

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

 

1. The Sale Value of the Schedule Property is fixed at Rs. (Rupees                                              only).
2. The PURCHASER  has  paid  a  sum  of                            (Rupees                            only)  by  cash/cheque/D.D.  bearing No. drawn on                             dated         as advance, the receipt of which sum the SELLER does hereby acknowledges.
3. The balance        payment       of                             (Rupees                                               only) will be paid by the PURCHASER to the SELLER at the time of execution of the Absolute Sale Deed and thus complete the Sale transaction.
4. The parties herein covenant to complete the Sale transaction and to execute the Absolute Sale Deed by the end of .
5. The SELLER confirms with the PURCHASER that he/she has not entered into any agreement for sale, mortgage or exchange whatsoever with any other person relating to the Schedule Property of this Agreement.
6. ³SELLER agrees to put the purchaser in absolute and vacant possession of the schedule property after executing the sale deed and registering the same in the jurisdictional Sub-Registrar’s office.
7. The SELLER covenants with the purchaser that he/she shall not do any act, deed or thing creating any charge, lien or encumbrance in respect of the schedule property during the subsistence of this Agreement.
8. The SELLER has specifically agreed and covenants with the PURCHASER that he/she shall do all acts, deeds and things which are necessary and requisite to convey absolute and marketable title in respect of the schedule property in favour of the PURCHASER or his nominee.
9. IT IS AGREED between the parties that all expenses towards Stamp Duty and Registration charges shall be borne by the PURCHASER only.

• The SELLER covenant to obtain at her cost necessary permission from the competent Authority, Income Tax Clearance Certificate and such other Certificate / Document as may be required at the time of Registration of Sale Deed in pursuance of this Agreement.

11. The PURCHASER shall have the right to nominate or assign his right under this agreement to any person / persons of his choice and the SELLER shall execute the Sale Deed as per terms and conditions of this Agreement in favour of the PURCHASER or his nominee or assignee.
12. The SELLER has agreed to get consent deed duly executed to this Sale transaction from his wife/her husband, sons and daughters on or before date of registration of Sale Deed and assured that they all join to execute sale deed in favour of the purchaser.
13. It is hereby expressly provided and agreed by the parties here to that both parties are entitled to enforce specific performance of the agreement against each other in case of breach of any conditions mentioned in this Agreement.
14. The original of the “AGREEMENT” signed by both the parties shall be with the PURCHASER and copy of the same similarly signed shall be with the SELLER.

 

SCHEDULE

 

All the piece and parcel of ¹        property bearing No.         situated at                                                             measuring East to West

               feet   (               feet)  and North     to       South            feet (                       feet) in all                         sq.ft. or                            sq.mtrs.  and

bounded on:

 

NORTH            :       By                        

SOUTH            :       By                        

EAST                :       By                        

WEST               :       By                        

 

⁴Details of the Building:

 

1. Plinth area of the building
2. Type of Roof.

• Type of flouring.

1. Type of wood used.
2. Amenities available.
3. Year of construction.

 

IN WITNESS WHEREOF the SELLER and the PURCHASER have signed this Agreement of Sale on the day month and year herein above mentioned in the presence of the following witnesses at          .

 

 

WITNESSES:

 

1. SELLER 

 

2. PURCHASER

 

 

Agreement to sell without possession sample

 

AGREEMENT TO SELL WITHOUT POSSESSION

This AGREEMENT TO SELL WITHOUT POSSESSION is executed on this ____ day of ___________________

 

BETWEEN

 ………. ,PAN NUMBER………. ,EPIC/Passport /OCI/CIO/PIO No………., Adhar No………..  son / wife  / daughter of    ……….  residing at ……………..by faith…………… , by Occupation …………. , by Nationality……………….,

Herein after referred to and called as the “OWNER(S)/ VENDOR(S) ”

AND

 

 

…………..…PAN-………, having place of business at ………, represented by its Partner(s) ……………….son / wife / daughter of ……….,  residing at ……….  by faith

….., by Occupation ….., by Nationality  ….. ,  hereinafter referred to and called as the ‘DEVELOPER ( s) ’

AND

………. PAN No……., EPIC/Passport /OCI/CIO/PIONo………., Adhar No………..    son / wife  / daughter of    ………. residing at ……………..  by faith…………… , by Occupation …………. , by Nationality………………., hereinafter  referred to and called as the “Purchaser(S)

 

(The Vendors/Purchaser(s) is/are being represented by his/her/their Constituted Attorney(s) ….. PAN No……, EPIC/Passport /OCI/CIO/PIO No………., Aadhar No………..   son/ wife/ daughter of ……, residing at ………., by faith ………., by Occupation ………., by Nationality ……….,  by Constituted General/Special Power of Attorney dated ………., /by Authenticated General/Special Power of Attorney  being No …dated ……….of the office of the……..)

 [for and on his/her behalf the representative / nominee / guardian / ward ( as the case may be) (with all additions),  Order or Permission No. ………………..  Date …………………. (as the case may be)] / [Name of the Government  / Organisation / Institution / Company / Firm / Trust / Society (as the case may be) with  place of its headquarters and for and on its behalf the / its …………………………. (Designation of the post held),  …………………………………… (Name of the person holding the post

or having the designation with all additions)]

 

NB: STRIKE OUT WHICH EVER IS NOT APPLICABLE

 

The expression of the terms the ‘OWNER/VENDOR’ , “DEVELOPER” and the ‘PURCHASER’ wherever they occur in the body of this Agreement to Sell, shall mean and include them, their legal heirs, successors, legal representatives, administrators, executors, transferee(s), beneficiary(ies), legatee(s),probatee(s), nominees and assignee(s).

AND WHEREAS the VENDORS/ DEVELOPERS/OR BOTH for his/their bonafide needs and requirements have agreed to sell, convey, transfer and assign to the PURCHASER

And the PURCHASER has agreed to purchase the FLAT along with proportionate, undivided, indivisible and impartible ownership rights in the said Property  with all rights  and interest, easements, privileges and appurtenances thereto, with all fittings, fixtures, electricity and water connections, structure standing thereon, with all rights in common driveway, entrances, passages, staircase and other common facilities and amenities provided therein, hereinafter referred to as “THE SAID PORTION OF THE SAID PROPERTY” for a total sale consideration of Rs. _______________ (Rupees ______________ ____________________________).

 

NOW THIS AGREEMENT TO SELL WITHOUT POSSESSION WITNESSETH AS UNDER :-

1.That in consideration of the sum of Rs. ____________/- (Rupees _____________________________), out of which a sum of Rs. ________/- (Rupees ________ __________________________), as advance money has been received by the VENDOR/DEVELOPER/OR BOTH from the PURCHASER, in the following manner :

1. a) the receipt of which the VENDOR / DEVELOPER/ OR BOTH hereby admits and acknowledges and
2. b) the remaining balance sum of Rs. _________/- (Rupees ____________________________), will be received by the VENDOR/ DEVELOPER/ OR BOTH from the PURCHASER, at the time of registration of the Sale Deed,
3. the VENDOR/ DEVELOPER / OR BOTH do hereby agree to grant, convey, sell, transfer and assign all his rights and interests in the said portion of the said property, fully described IN SCHEDULE B,together with proportionate undivided, indivisible and impartible ownership rights in the freehold land underneath the said building to the PURCHASER, on the terms and conditions herein contained provided that nothing herein stated shall confer or deemed to have conferred upon the PURCHASER exclusively any right or title to the common driveway, passages, staircase, overhead water tanks, sewers, water meters and other common facilities to the exclusion of the VENDOR/ DEVELOPER / OR BOTH and or the PURCHASER or owners or occupants of the other units of the said building.

3.That the actual physical vacant possession of the said portion of the said property will be delivered by the VENDOR/ DEVELOPER / OR BOTH to the PURCHASER, at the time of the registration of the Sale Deed, after receiving the full consideration.

4.That on or before _____________, the VENDOR/ DEVELOPER / OR BOTH will execute and get the Sale Deed of the said portion of the said property registered, in favour of the PURCHASER or his nominee/s, on receipt of the full and final balance amount, failing which either party shall be entitled to get the Sale Deed registered through the court of law by SPECIFIC PERFORMANCE OF THE CONTRACT, at the cost and expenses of the defaulting party.

5. That the VENDOR/ DEVELOPER / OR BOTH hereby assures the PURCHASER that the VENDOR/ DEVELOPER / OR BOTH has neither done nor been party to any act whereby the VENDOR/ DEVELOPER / OR BOTH rights and title to the said portion of the said property may in any way be impaired or whereby the VENDOR/ DEVELOPER / OR BOTH may be prevented from transferring the said portion of the said property.

6.That the VENDOR/ DEVELOPER / OR BOTH hereby declares and represents that the said portion of the said property is not subject matter of any HUF and that no part of the said portion of the said property is owned by any minor.

7.That the VENDOR/ DEVELOPER / OR BOTH assures the VENDOR/ DEVELOPER / OR BOTH that the said portion of the said property is free from all kinds of encumbrances such as prior Sale, Gift, Mortgage, Will, Trust, Exchange, Lease, legal flaw, claims, prior Agreement to Sell, Loan, Surety, Security, lien, court injunction, litigation, stay order, notices, charges, family or religious dispute, acquisition, attachment in the decree of any court, hypothecation, Income Tax or Wealth Tax attachment or any other registered or unregistered encumbrances whatsoever,

8. And if it is ever proved otherwise, or if the whole or any part of the said portion of the said property is ever taken away or goes out from the possession of the PURCHASER on account of any legal defect in the ownership and title of the VENDOR/ DEVELOPER / OR BOTH then the VENDOR/ DEVELOPER / OR BOTH will be liable and responsible to make good the loss suffered by the PURCHASER
9. And keep the PURCHASER saved, harmless and indemnified against all such losses and damages suffered by the PURCHASER.
10. That the house tax, water and electricity charges and other dues and demands if any payable in respect of the said portion of the said property shall be paid by the VENDOR/ DEVELOPER / OR BOTH upto the date of handing over the possession and thereafter the PURCHASER will be responsible for the payment of the same.

11.That no common parts of the building shall be used by the PURCHASER or other owners/occupants of the said building for keeping/chaining pets, dogs, birds or for storage of cycles, motor cycles nor the common passage shall be blocked in any manner.

12. That the proportionate common maintenance charges will be paid by all the occupants/owners of the said building in proportion of the area occupied by them.
13. That the PURCHASER shall have full right of access through staircase to the top terrace at all reasonable times to get the overhead tank repaired/cleaned etc. and to install T.V. Antenna.
14. That the PURCHASER shall have, as a matter of right, right to use all entrances, passages, staircases and other common facilities as are available in the said building.

15.That a separate electric meter and water meter have been provided in the said building for the exclusive use of the owner(s)/occupants of the said portion of the said property.

16. That in the event of the building being damaged or not remaining in existence on any account whatsoever then the PURCHASER shall have the proportionate rights in the land alongwith other owners of the building and shall have the right to raise construction in proportion to the one as now being sold conveyed and being transferred under this Agreement to Sell Without Possession.
17. That the PURCHASER have full right to nominate or assign this Agreement to Sell in favour of any person or persons, be it a firm, body corporate or association of person and the VENDOR/ DEVELOPER / OR BOTH shall have no objection to it.

18.That pending completion of the sale, the VENDOR/ DEVELOPER / OR BOTH neither shall enter into any agreement of sale in respect of the said property or any part thereof nor shall create any charges, mortgage, lien or any arrangement, in respect of the said property in any manner whatsoever.

19. That the photostat copies of all relevant documents in respect of the said property have been delivered by the VENDOR/ DEVELOPER / OR BOTH to the PURCHASER.
20. That all the expenses of the Sale Deed viz. Stamp Duty, Registration charges, etc. shall be borne and paid by the PURCHASER.

21.That this transaction has taken place at ………. As such, HIGH Courts shall have exclusive jurisdiction to entertain any dispute arising out of or in any way touching or concerning this Deed.

THE SCHEDULE “A”

                            (DESCRIPTION OF THE ENTIRE PROPERTY)

 

ALL THAT piece and parcel of ………………… land measuring about ………… Cottahs ……………. Chittacks ………….. sq. ft. more or less land, along with the Complex named ……………having   G + …………..Building lying and situated at Mouza-…………., Pargana–………………., J.L. No………….. , Re Su No.-…………………  Touzi No…………comprising in R.S. Dag No.-……………………, under R.S. Khatian No.-…………….., corresponding to LR Plot No………….   and LR Khatian No……….. , having Municipal Holding No………………….., Road Name ……………… , being Premises No.-……………. ,  PIN-………………, under Ward No.-……………… within the limits of ……………….Municipality / Municipal Corporation, within the office of ………………….. P.S.-………………  District-……….., and butted and bounded by: –

 

ON THE NORTH BY: –

ON THE SOUTH BY: –

ON THE EAST BY: –

ON THE WEST BY: –

 

 

THE SCHEDULE ”B” ABOVE REFERRED TO –

[Description of the Flat/Unit]

ALL THAT piece and parcel of a demarcated self-contained residential / semi commercial /office / commercial  Flat/ covered garage / open garage  being No.………….. on the …………Floor, in Block-…………., having measurement of …………….. sq. ft. Super built up area more or less comprising of ………………………….., with ……. Flooring , from Developer’s Allocation within the G Plus………. Building,  of age years …….,  the property being tenanted / not tenanted , the property being litigated with pending Title suit No ……………for year …….lying in The Court of ………/ not litigated , within the Complex named ……………….. together with undivided proportionate share of underneath land and other common amenities and facilities including easement and quasi-easement rights along with restrictions and reservations as stated aforesaid as attached with the Multi-storied Building  within the said Complex at Municipal Holding No.-………….. , Road , …………………. Being  Premises No.-…………., Road……… , Pin ………, under Ward No.-………. , within the ……………Municipality / Municipal Corporation, under the office of ………. ,under P.S.- ………………., District-………….. fully described “A” SCHEDULE herein above written.

 

Annexed Plan marked with Red Border will be treated as part and parcel of this Deed.

 

– THE SCHEDULE “C”ABOVE REFERRED TO –

[The Common portions]

1.Entrance and exists internal roads, and footpath.

2. Common durwans / caretaker room , Caretaker Room, Security Camera Room, (if any).

3. Boundary walls and main gates.
4. Drainage and sewerage lines and other installations for the same (except only those as are installed within the exclusive are of any unit and/or exclusively for its use).
5. Staircases lobbies on all the floors and vacant area of the ultimate roof of the proposed building (Roof right will not be available for Garage, Shop and Godown owners, but rights attached to the Ground Floor will be available only).
6. Tube well and water supply system, water pumps, water pump rooms, overhead tank, septic tank together with all common plumbing installation for carriage of water (save only those as are

exclusively within for the use of any unit.) , community Hall and two wheeler parking space

7. Lighting fixtures and fittings in common area from common use.

(Special amenities are to be incorporated in query and the amenities that are to be  selected by citizens during filling up of query shall be auto generated  in e deed )

 

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands and seals after understanding the contents of this Deed of conveyance  on the day, month and year first above written.

                                                ______________________________         

          Signature of the Vendor/developer(s)

                                                ______________________________

          Signature of the Purchaser(s)

WITNESSES :

SIGNED, SEALED AND DELIVERED

by the Parties at ___________ in the presence of :

1.

2

Drafted by me:

 

 

MEMO OF CONSIDERATION

 

RECEIVED of and from the Purchaser…………..the sum of Rs……………(Rupees………………..)   herein above towards the full consideration of the property.

 

D.D/Pay Order  No.	Date	Bank	Amount
………..	………	………….	Rs………….
Total :			Rs………….

  

 

                ……………………………………………………….

                     SINGATURE OF DEVELOPER / VENDOR/ CONFIRMING PARTY

( NB: The amount received by Vendor , Developer and confirming party should be mentioned separately)

 

Witnesses:

1.

 

2.

 

Agreement for Sale of Land THIS Agreement is made on this _____           day of______                                 (Name of the Seller), a Company                                                                         and having its Registered office at (address of registered office of the seller), (hereinafter referred to as “Seller “) ONE PART. AND (Name of the Buyer) having its registered office at, (address of registered office of the buyer) a Company                                                                                                     hereinafter referred to as “the Buyer” of the OTHER PART. W H E R E A S: A.      The Seller is the Owner of and in possession of the Property situated at Plot no _______________________________, Distt ________________with a total area admeasuring of _____Acres (here-in-after referred to as ‘Property’ and more fully described in the schedule mentioned at the bottom of this agreement). B.      The Property was purchased by the Seller under the _________________ scheme of ________________________________, as is stated in the Conveyance Deed dated ___ day of ________, _______(“Conveyance Deed”), registered on ____________at _____________ C.       The Buyer has expressed its desire to purchase the above Property at the rate of Rs ___________________per acre(Rupees ________________only) and the Seller has agreed to the sell the Property to the Buyer at the price offered by the Buyer. D.      In the aforesaid premises, the parties have agreed to record the terms and conditions in this Agreement. NOW THIS AGREEMENT WITNESSETH AS FOLLOWS: 1.                  That the Seller has agreed to Sell and the Buyer has agreed to purchase “Property” situated at _________________________, Distt _______________________for a total consideration of Rs _________________(Rupees _____________________________ only) 2.      A sum of Rs. _____________ (Rupees ________________ only) representing 10 % of the sale consideration shall be paid as advance at the time of execution of this agreement to sell vide cheque no. _________ dated _____________ drawn on ____________________ payable at ___________. 3.      A sum of Rs. _____________ (Rupees ________________ only) representing the balance sale consideration, shall be paid by way of demand draft the time of registration of the Sale deed in the Office of Registrar. 4.      The Sellers hereby represent, covenant, warrant, undertake and declare that : i)                    Its title to the said Property is free, clear and     marketable ii)                   it is in physical possession of  the said Property iii)                 that the said Property or any part thereof is not subject matter of any litigation or proceeding and the same is not attached or sold or sought to be sold in whole or in portion in any court or other Civil or Revenue or other proceeding and not subject to any attachment by the process of the Courts or in possession or custody by any Receiver, Judicial or Revenue Court or any officer thereof or there is no any notice of acquisition or requisition in respect of the said Property. iv)                 the Sellers represent and assure that there are no subsisting agreement or arrangement to sell or otherwise for the said Property or any part thereof with anyone else and they have not executed any Power of Attorney in favour of any third party to deal with the said Property or any part thereof. v)                  The Sellers undertake and declare that they shall not enter into negotiations, commit, transfer, charge, mortgage, alienate or transfer possession of the Property to any third parties during the subsistence of this Agreement to sell. vi)                 there are no pending liabilities, liens, charges or encumbrances with regard to the said Property including any government dues, which would affect the title of the Sellers for the said Property and that the Sellers have paid all the taxes, cess, dues etc. to various authorities concerned till the date of execution of this Agreement to Sell and shall continue to pay till the date of registration of the sale deed. vii)               The Sellers have paid all the rates, charges and taxes as also all the rentals, gram panchayat taxes, recurring charges as well as outgoings, electricity bills for the said Property upto date. viii)              The Seller is in the possession of and is not prohibited from handing over quite, vacant and peaceful possession of the said Property to the Buyer as contemplated herein. ix)                 The Seller has purchased the said Property after taking requisite permission from all concerned authorities if any required and till date they have not received any adverse notice from any of the authority in respect of the said property. x)                  The Seller and the buyer have good right, full power and absolute authority to enter into this Agreement to sell. xi)                 The transaction contemplated herein for sale of the Property from the Seller to the Buyer shall pertain to the entire Property and nothing herein shall obligate the Buyer to purchase the Property from the Seller in parts. xii)               There is no order of attachment by Income Tax Authorities and/or by any other authorities under the law for the time being in force or any notice issued or likely to be issued under section 281 of the Income Tax Act, 1961 and no approvals under section 281 of the Income Tax Act, 1961 is required by the Seller; 5        The Seller shall obtain the NOC from requisite authorities for sale and transfer of the said Property in favour of the Buyer. This clause shall form the essence of this agreement. 6        Consequent to the seller obtaining the NOC from the requisite authorities for sale and transfer of the said Property in favour of the Buyer, in case the buyer refuses to get the sale deed registered the buyer shall be liable to pay liquidated damages of Rs. ________________ (Rupees ________________only) to the seller. 7        The Seller assures its title to the Property and hereby states that the all relevant government records reflect its title to the property. The Buyers shall at its own cost be entitled to investigate title of the Seller in respect of the said property. The Buyers will make a title search in the Government records to verify the title of the Sellers in respect of the said Property. The Seller shall provide full co-operation and assistance to the Buyer and, or its advisors/agents/representatives to carry out such investigation/title search. The Seller shall provide all information and documents as are available with him and requested by the Buyer or its advisors/ agents/representatives. 8        The transaction shall be completed by ________________. 9        In the event of the sale not being completed, either due to the failure of the Seller in establishing its title or due to the failure of the Seller to comply with their obligations under Clause 5 above, ________________________, the Buyers shall have the right to: (i)         cancel this Agreement to sell. (ii)            each party shall bear its own costs. (iii)          no party shall be liable to the other for consequential damages arising out of termination of the contract. 10         If, after sale, any loss is caused due to defect entitle of the Seller, the Buyer is entitled to recover the same from the Seller. 11        The Sellers agrees to pay all the outgoings, cesses, rates, taxes and other charges payable for the said Property upto the date of execution of this Agreement to sell and from the date of execution of this Agreement to sell onwards the same shall be borne and paid by the Buyers alone. 12       All expenses of and incidental to this Agreement to sell and the Conveyance’s and all other assurances and writings including stamp duty and registration fees shall be borne and paid by the Buyers alone. 13        No provision of this Agreement to sell shall be deemed to constitute a partnership or joint venture between the Parties. 14        No provision of this Agreement to sell shall constitute either Party as the legal representative or agent of the other, nor shall either Party have the right or authority to assume, create or incur any liability or any obligation of any kind, express or implied, against, or in the name of, or on behalf of the other Party except as may be required for the purpose of execution of this agreement. 15        The validity, construction and performance of this Agreement to sell shall be governed and interpreted in accordance with the laws of India. 16        Neither this Agreement to sell nor the rights or obligations hereunder shall be assigned or delegated, in whole or in part to any other third party or entity without the prior written consent thereto of the other Party. However, the Buyers shall at its discretion be entitled to call upon the Seller to execute the sale deed in respect of the said property in favour of any of its affiliates or nominees.  However the parties affirm that the mutual rights and obligation under this agreement shall at all times remain that of the parties to this agreement. 17        The failure of any Party to enforce, in any one or more instances, performance of any of the terms, covenants or conditions of this Agreement to sell shall not be construed as a waiver or a relinquishment of any right or claim granted or arising hereunder or of the future performance of any such term, covenant, or condition, and such failure shall in no way affect the validity of this Agreement to sell or the rights and obligations of the Parties hereto. The Parties acknowledge that a waiver of any term or provision hereof may only be given by a written instrument executed by any Party hereto. 18        This Agreement to sell may be executed in two counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same instrument. 19        Each Party to this Agreement to sell represents that it possesses full power and authority to enter into this Agreement to sell and to perform its obligations hereunder and that the legal representative of each Party is fully authorised to sign this Agreement to sell. 20        If any question of difference or claim or dispute arises between the parties hereto touching these presents or the construction thereof as to the rights, duties or obligations of the parties hereto or as to any matter arising out of or connected with the subject matter of these presents, the same shall be referred to the arbitration to be held at New Delhi The reference shall be to a single arbitrator to be mutually appointed, or in case of disagreement as to the appointment of a sole Arbitrator, by 3 Arbitrators of which each party shall appoint one Arbitrator and the two appointed Arbitrators shall jointly appoint the third Arbitrator.  The arbitration shall be governed by the provisions of the Arbitration and Conciliation Act, 1996 or any law relating to arbitration in force at the time of such reference. 21            Upon execution of this agreement to sell the buyer will have no option to  terminate this agreement except upon on the failure of the seller to obtain NOC to sell from the requisite authorities or its solicitors informing the buyer of any material defect in the title of the land. 22                The signatories to the agreement have been duly authorised by their respective board of directors to sign and execute this agreement. 23        Any notice required or permitted by this Agreement to be given by Seller to the Buyer, shall be in writing and shall be addressed to _____________, __________________________________________ or at such address the Buyer may, from time to time, designate to the Seller in writing.   Any notice, required or permitted by this Agreement, to be given by the Buyer to Seller shall be in writing and shall be addressed to _____________, _____________________________or at such other address as may from time to time, be designated to the Buyer in writing by Seller. All notices required and permitted under the provisions of this Agreement or by law to be served upon or to be given to a Party by any other Party shall be in English language and shall be deemed duly served or given:- (i)         on the date of service, if served personally or sent by facsimile transmission with appropriate confirmation of or receipt; or (ii)        on the 2nd day after service, if sent by an  reputed courier to the address given above or such other address as may be notified by the parties hereto.  24        No amendment, deletion, addition or other changes in any provision of this agreement or waiver of any right or remedy, herein provided, will be effective unless specifically set forth in writing signed by the parties to be bound thereby.  No waiver of any right or remedy on one occasion will be deemed to be waiver of such right or remedy on other occasion. 25        This agreement embodies entire understanding of the parties as to its subject matter and shall not be amended except in writing executed by both the parties to this Agreement. 26        It is agreed by the Seller and the Buyer that the Buyer shall get this Agreement registered with the Competent Authority as required under the Act, if required by law. The Buyer shall also bear all the cost of the Stamp Duty, Registration fee, Advocates fees and all miscellaneous expenses that may be incurred for such purposes. 27        Save and except if required by Government, any Courts of Law, or its employees, legal advisors, auditors and other consultants the Buyer and Seller shall refrain from disclosing the contents and nature of these presence or any other information received by them in the course of the transaction. i)          If any provision of this Agreement is invalid, unenforceable or prohibited by law, this Agreement shall be considered divisible as to such provision and such provision shall be inoperative and the remainder of this Agreement shall be valid, binding and of like effect as though such provision was not included herein. ii)         This Agreement to sell together with the Schedules and Annexures shall constitute the entire agreement between the Parties hereto and shall supersede all prior proposals, negotiations, understandings and agreements, whether oral or written exchanged between the parties.   28        The Courts at _____ shall have exclusive jurisdiction to try all suits or proceedings, matters or things in connection with the business arrangement. IN WITNESS WHEREOF the parties hereto have set and subscribed their respective hands and seals the day month and year first above written. SIGNED SEALED AND DELIVERED By and on behalf (Seller) in the presence of: 1. SIGNED SEALED AND DELIVERED By and on behalf of (Buyer) in the presence of: 1. THE SCHEDULE ABOVE REFERRED TO   ALL THOSE Piece or parcels of land or ground situate at__________________________

 

FAQs

What is a sale agreement?

A sale agreement is a legal document that lays out the terms and conditions involved in a future contract involving movable and immovable property.

Do I have to register an agreement to sale?

Yes. This is because Section 17(1)(g) of the Registration Act makes it mandatory to register agreements relating to sale of immovable property valued at Rs 100 or above.

Who pays stamp duty on an agreement to sale?

The buyer pays stamp duty on an agreement to sale.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com