The essential elements of an Agreement of Sale/Agreement to Sell include:

1. Parties: Identification of the seller (vendor) and buyer (purchaser)
2. Property Description: Detailed description of the property being sold.
3. Sale Price: Clearly stated purchase price and payment terms.
4. Payment Terms: Schedule of payments, including deposit, installments, and final payment.
5. Completion Date: Date for possession handover and transfer of ownership.
6. Conditions Precedent: Requirements that must be fulfilled before the agreement becomes binding.
7. Warranties and Representations: Promises made by the seller about the property's condition or features.
8. Covenants: Agreements or promises made by the seller or buyer, enforceable by law.
9. Termination Clause: Conditions under which the agreement can be canceled.
10. Signatures:Signatures of both parties, witnessed by at least two individuals.
11. Date: Date of agreement execution.
12. Consideration: Something of value exchanged between parties (usually money).
13. Intention to Sell: Clear intention of the seller to transfer ownership.
14. Intention to Buy: Clear intention of the buyer to purchase the property.
15. Legal Compliance: Compliance with relevant laws and regulations.

The contract specifies the terms under which the title of the property concerned will be transferred. The Transfer of Property Act, 1882 (TPA) is the Central legislation regulating the sale, lease, mortgage, and gift matters. Section 54 has defined an agreement to sell as ‘A contract for the sale of immovable property stating that the sale of the concerned property will take place as per the terms mutually agreed upon by both parties.

An Agreement to Sell a contract is crucial because it legally binds the parties involved in the sale of a property. This contract outlines the terms and conditions of the sale, including the price, date of sale, and any contingencies that must be met before the sale is finalized. The agreement also protects both buyers and sellers from fraud or misrepresentation by clearly stating all material facts about the property. Lastly, this contract can be used as evidence in court if there are any disputes between the parties after the sale has been completed and the Agreement is registered.

Problem Example: - Seller side After Deal:-

1. Seller increase deal amount after token amount received.
2. Impose on buyer self-made terms and conditions unlawful.
3. Received token amount then refused or delay to registration.
4. Seller hides mortgage property details
5. Seller death his heirs hide legal heir's name & rights
6. Property tax, Bills, Society maintenance not pay due amount
7. Seller not provide required document to completion registration process.

Seller not provide required document to completion registration process.

1. Buyer CIBIL problem
2. Home Loan bank refused to legal ground approval after submission document

1. Clarity and Certainty: Clearly outlines the terms and conditions of the sale, avoiding misunderstandings.
2. Protection of Interests: Safeguards the rights and interests of both the buyer and seller.
3. Proof of Intention: Demonstrates the genuine intention of both parties to enter into a transaction.
4. Prevents Disputes: Reduces the likelihood of disputes by specifying obligations, payment terms, and completion dates.
5. Evidence: Serves as evidence in case of legal disputes or disagreements.
6. Obligations and Responsibilities: Clearly defines the obligations and responsibilities of both parties.
7. Payment Terms: Specifies payment schedules, amounts, and methods.
8. Transfer of Ownership: Facilitates the transfer of ownership by outlining the process.
9. Compliance with Laws: Ensures compliance with relevant laws and regulations.
10. Financing:Helps secure financing by providing a clear agreement outlining the terms.
11. Inspections and Due Diligence:Allows for inspections and due diligence to be conducted.
12. Termination: Outlines the conditions under which the agreement can be terminated.

According to the transfer of property Act 1882, a Agreement of Sale/Agreement to Sell is valid only if registered.

- Benefits

- Provides legal sanctity

- Creates a public record

- Helps in resolving disputes

- Prevents denial of agreement by seller

In Maharashtra, registration of an Agreement of Sale/Agreement to Sell is not strictly mandatory but highly recommended. However, if the agreement is for a value exceeding ₹10,000, it needs to be registered under the Indian Registration Act, 1908.

Additionally, as per the Maharashtra Stamp Act, 1958, an Agreement of Sale/Agreement to Sell is required to be stamped, and the stamp duty is payable on the agreement.

While registration is not mandatory, it provides legal sanctity and protection to both parties. If the agreement is not registered, it may not be admissible as evidence in court in case of disputes.

To summarize:

• Registration is not mandatory but recommended.
• Stamping is required for agreements exceeding ₹10,000.
• Registration provides legal sanctity and protection.

A Agreement of Sale/Agreement to Sell is deemed to be invalid if it is not registered. But on the basis of peaceful possession for the long term, ownership in the property is deemed to be valid. In your case, this is considered to be an evasion of stamp duty. If any time any question would arise, to get the sale agreement registered, you may have to pay the required stamp duty as per the present value.

Within 45-60 days of the expiry of the sale agreement, both the seller as well as the buyer would have to revalidate the sale agreement's duration as per mutual agreement and extend the same on mutually agreed terms.

In Maharashtra, a minor (a person under the age of 18) can be a buyer (purchaser) in an Agreement of Sale/Agreement to Sell, but with certain conditions:

1. In Maharashtra, a minor (a person under the age of 18) can be a buyer (purchaser) in an Agreement of Sale/Agreement to Sell, but with certain conditions: In Maharashtra, a minor (a person under the age of 18) can be a buyer (purchaser) in an Agreement of Sale/Agreement to Sell, but with certain conditions:
2. Court approval: The agreement must be approved by the court, typically the District Court or High Court.
3. Registration: The agreement must be registered, as registration is mandatory for minors.

Yes, stamp duty is payable on Agreement of Sale/Agreement to Sell in Maharashtra, as per the Maharashtra Stamp Act, 1958. The stamp duty is calculated which is more than the Ready Reckoner market value or consideration amount (sale value) mentioned in the agreement. In India, the buyer is liable to pay stamp duty whenever any immovable property is transferred. The amount of stamp duty payable depends on the state in which the property is situated as well as the value of the property.

Similarly, when an agreement to sell is executed, stamp duty is also payable on it. The amount of stamp duty payable on an agreement to sell depends on various factors such as the property’s value or Consideration Amount, the nature of the transaction. (Sale/Purchase/Exchange/Lease), etc.

Similarly, when an agreement to sell is executed, stamp duty is also payable on it. The amount of stamp duty payable on an agreement to sell depends on various factors such as the property’s value or Consideration Amount, the nature of the transaction. (Sale/Purchase/Exchange/Lease), etc.

Similarly, when an agreement to sell is executed, stamp duty is also payable on it. The amount of stamp duty payable on an agreement to sell depends on various factors such as the property’s value or Consideration Amount, the nature of the transaction. (Sale/Purchase/Exchange/Lease), etc.

There are four charges in deed. (Defend on property location)

1) Stamp Duty -

Stamp Duty is decided by sale value or market value of property whichever is higher. Stamp Duty is some per percentage of sale value or market value whichever is higher.

As per Article 25 (b) of the Maharashtra Stamp Act:

(i)within the limits of any municipal Corporation or any cantonment area annexed to it or any urban area not mentioned in sub clause (ii)	5%
(i)within the limits of any municipal Corporation or any cantonment area annexed to it or any urban area not mentioned in sub clause (ii)	5%
(iii) within the limits of any Gram Panchayat area or any such area not mentioned in sub-clause (ii).	4%

Reduction of 1 % of stamp duty for women under Article 25(b)

As per Order R & FD No Mudrank-2021/UOR/UOR12/CR.107/M-1 (Policy) dated 31st March 2021, Maharashtra Government reduced the stamp duty from 1st of April 2021 by one percent as otherwise chargeable under clause (b) of Article 25 of Schedule-1, on the document or instrument of conveyance or agreement to sell of any type of residential unit i.e the flat or individual bungalow or row houses or any residential house or any independent house or any type of tenement executed or being execute between “the women/women purchaser/s and any seller or other executant of the said document or instrument.

2) State Cess -

1. Local Body Tax (LBT) - Local Body Tax (LBT) of 1% is applicable on registration in Maharashtra
2. Metro Cess - Metro Cess of 1% is a tax levied by the Maharashtra government on the registration of property. only in Metro City i.e. Mumbai, Pune, Pimpri Chinchwad, Nagpur, Thane It was introduced in 2019 to fund the development of metro rail projects in Maharashtra.

3) Registration Fees -

Registration fees is also a variable of sale value upto certain limit then it is fix for all value above certain limit.
Note: registration value if 1% of sale value or 30,000/- whichever if higher.

4) Document Handling Charges (DHC) Fees -

online through collected Sub Registrar office for document handling, for every page of the document, a fee of Rs. 20/- is applicable.

LBT is a tax levied by local authorities (municipal corporations or councils) on the transfer of property.

Local Body Tax (LBT) of 1% is applicable on registration in Maharashtra of documents, including:

1. Agreement of Sale/Agreement to Sell
2. Conveyance Deed
3. Gift Deed
4. Exchange Deed
5. Partition Deed

Metro Cess is a tax levied by the Maharashtra government on the registration of property transactions, including Agreement of Sale/Agreement to Sell, Conveyance Deed, Gift Deed, and other documents. It was introduced in 2019 to fund the development of metro rail projects in Maharashtra.

Metro Cess is charged at a rate of 1% of the consideration amount (sale value) on the registration of documents.

An Agreement of Sale (Agreement to Sell) and a Sale Deed are two separate legal documents with distinct purposes:

Agreement of Sale (Agreement to Sell):

1. Preliminary document: Outlines the terms and conditions of the sale.
2. Preliminary document: Outlines the terms and conditions of the sale
3. Not a transfer document: Does not transfer ownership.
4. Binding contract: Creates a binding contract between parties.

Sale Deed:

1. Transfer document: Actually transfers ownership of the property.
2. Final document: The final document executed after fulfilling conditions in the Agreement of Sale.
3. Conveys title: Transfers the title of the property from the seller to the buyer.
4. Registration required: Must be registered with the relevant authorities.

Key differences:

1. Purpose: Agreement of Sale outlines the terms, while Sale Deed transfers ownership.
2. Ownership transfer: Agreement of Sale does not transfer ownership, while Sale Deed does.
3. Registration: Agreement of Sale may not require registration, while Sale Deed must be registered.

In summary, the Agreement of Sale is a preliminary document outlining the terms, while the Sale Deed is the final document that transfers ownership.

Yes, an Agreement of Sale/Agreement to Sell can be cancelled under certain circumstances:

1. Mutual Consent: Both parties agree to cancel the agreement.
2. Breach of Terms: One party fails to fulfill their obligations, allowing the other party to cancel.
3. Failure to Complete: The sale is not completed within the specified timeframe.
4. Invalidation: The agreement is found to be invalid due to legal issues, such as lack of stamp duty or registration.
5. Court Order: A court orders the cancellation of the agreement.

To cancel an Agreement of Sale/Agreement to Sell, follow these steps:

1. Notice: Serve a notice to the other party, stating the intention to cancel.
2. Reasons: Specify the reasons for cancellation.
3. Return of Documents: Return original documents, including the agreement, to the other party.
4. Refund: Refund any advance payments or deposits made.
5. Legal Advice: Consult a lawyer to ensure the cancellation is done legally and correctly.

Yes, an Agreement of Sale/Agreement to Sell can be revoked in Maharashtra under certain circumstances:

1. Unilateral Revocation: One party can revoke the agreement before it is executed, provided the other party has not acted on it.
2. Bilateral Revocation: Both parties agree to revoke the agreement.
3. Bilateral Revocation: Both parties agree to revoke the agreement.
   • Unlawful
   • Against public policy
   • Obtained through fraud or misrepresentation
   • Unconscionable
4. Revocation due to Change in Circumstances: If there is a significant change in circumstances, making it impossible to perform the agreement.

Yes, where in the case of agreement to sell an immovable property, the not possession of any immovable property is transferred to the purchaser before the Sale Deed/Conveyance Deed then such agreement to sell shall be refund as per govt. guideline.

Refund of stamp duty can be obtained in the following circumstances:

• Before signing of document by any person, if the stamp paper has been rendered unfit for its use, because being inadvertently spoiled due to errors in writing.
• Unsigned stamp paper written fully or partly but which is not to be used.
• Signed document/stamp paper but, in case where : -
  1. The party has subsequently found it to be entirely illegal since the beginning (Void/ ab/ initio) as per Section 31 of Specific Relief Act.
  2. The court has subsequently found it to be entirely illegal since the beginning (Void /ab/ initio) as per Section 31 of Specific Relief Act.
  3. Is found to be unfit for use due to any deficiency or mistake.
  4. Is found to be unfit for use due to any deficiency or mistake.
  5. Any party to the document has not signed the document or is unable/ incapable of signing the document or has declined to sign it, for which it may not be possible to complete the intended transaction.
  6. Any party to the document has not signed the document or is unable/ incapable of signing the document or has declined to sign it, for which it may not be possible to complete the intended transaction.
  7. If the intended transaction might have been completed with the help of another document between the same parties having no less stamp duty, than the earlier document.
  8. If the Stamp purchased for the document being of insufficient value, the same transaction has been completed by another document with the Stamp of the proper value between the same parties.
  9. That stamp paper might have been spoiled inadvertently, unintentionally for which the same parties might have executed another document for the same purpose.

More information regarding click here to Refund of Stamp Duty or Contact us

According to Sec. 54 of the Transfer of Property Act, 1882, 'sale' is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. If a deed is executed without payment of price, it is not a sale. It is of no legal effect.

A civil court can cancel a deed under Specific Relief Act: HC. A duly signed sale deed may be cancelled by a civil court at the insistence of the seller, as prescribed under Section 31 of the Specific Relief Act, the HC has ruled.

A deed is made on a non-judicial stamp paper. It is governed by the Registration Act 1908. These parties are also referred to as the 'Vendor ' and 'Vendee' in legal documents.

Note that the legal heirs have every right to object to the transfer and make the sale invalid, provided the same is filed under the limitation period, i.e. within three years from the date the legal heirs of B becoming aware of the same.

Under the Limitation Act, 1963, any person in possession of private land for over 12 years or government land for over 30 years can become the owner of that property, as laid down in Articles 64, 65, 111, or 112 of the 1963 Act, relating to suits for possession of immovable property.

A civil suit for an injunction can be filed. The prayer is made to the Court for restraining the party from the disposal of the property. The actual owner can file a civil lawsuit for declaration and possession. The Court may state him the owner and pass the control of the property to him.

The tax implications of an Agreement of Sale/Agreement to Sell in India are:

1. Stamp Duty: Payable on the agreement, rates vary by state (e.g., Maharashtra: 2% of consideration amount).
2. Capital Gains Tax:
   • Seller: Liable on profit from sale of property (short-term/long-term capital gains).
   • Buyer: Not liable for capital gains tax on purchase.
3. Income Tax:
   • Seller: May be liable for income tax on interest earned from advance payments.
   • Buyer: May claim tax deductions on interest paid for home loans.
4. Service Tax:
   • Seller: Liable for service tax on services provided (e.g., construction)..
   • Buyer: Not liable for service tax on purchase.
5. GST (Goods and Services Tax):
   • Applicable on construction services, not on resale of properties.
6. TDS (Tax Deducted at Source):
   • Buyer: Must deduct TDS (1% of consideration amount) on payments exceeding ₹50 lakhs.
7. Indexation Benefit:
   • Seller: Can claim indexation benefit on long-term capital gains.

(Please consult a tax professional or chartered accountant to ensure compliance with tax laws and regulations, as they are subject to change.)

Typically registered within 4-7 working days

The process involves:

1. Valuation of the Property
2. Prepare the agreement document
3. Signing by both parties
4. Pay stamp duty (as applicable)
5. Submit the document to the Sub-Registrar's office
6. Sign in the presence of the Sub-Registrar
7. Receive the registered document

Shivay Services provides the best services to make a sale deed. All you have to do is provide your contact number and information, consult with our expert ,provide relevant documents and get it done.

A title search is a search which gives answer to the question if the owner is really a legal owner of the property and if there are any outstanding claims on the property. This can be done by going through records of property at sub registrar’s office.

If a property has encumbrance on it like mortgage deed or other claim on property then it is known as title defect.

When a property is sold and ownership passes from one owner to other on more than one occasion then title of the property creates a chain of ownership which is called chain of title.

An encumbrance is a thing which creates difficulty in transfer of property from one owner to other for example outstanding mortgages, liens on real estate, unpaid property taxes etc.

Sub registrar’s offices are divided according to regions and specific jurisdiction is allotted to specific office to handle property registrations in that area.

Encumbrances:
An encumbrance is a thing which creates difficulty in transfer of property registration details from one owner to other for example outstanding mortgages, liens on real estate, unpaid property taxes etc.A buyer must check for any encumbrances on the property before buying and should get the property cleared from any encumbrances. This can be checked at the sub registrar’s office within whose jurisdiction the property comes.
Chain of Documents:

Any buyer should check for all the chain of documents before buying a property. Chain of documents are the documents which specify when and how the property has been transferred from one owner to other.
Payment of Dues:

Any property should be free from any dues like property taxes, electricity bills, water bills etc. It is the responsibility of the buyer to check this before registering the property.

Preparation of Deed:
A draft of the deed(Sale Deed, Lease Deed, Correction Deed etc.) that needs to be executed must be prepared on which the details of all the parties involved and the property involved along with terms and conditions must be mentioned clearly before registering the deed.

Stamp duty calculation:
Stamp duty is the fees charged by the government and it varies from state to state. Stamp duty is calculated on the basis of market value of the property involved.

Govt. Payment:
The registration fee and stamp Duty, DHC charges must be paid before the time of registration.

AGREEMENT OF SALE/AGREEMENT TO SALE:
Both the parties and the recipient must sign the AGREEMENT OF SALE/AGREEMENT TO SALE in the presence of two witnesses.

Registration of AGREEMENT OF SALE/AGREEMENT TO SALE :
The deed must be registered with the Sub-Registrar of Assurances within four months from the date of execution.

A) For Government Valuation

1. All Index 2/ 7/12 extract / Property Card
2. Parking Letter (if allotted Covered/open Parking)
3. Building Completion Certificate OR Electricity Bill

B) Registration

i) Agricultural Property

1. Chain of Document - all previous registered Documents with index 2 & Registration Receipt.
2. Search Title Report
3. 7/12 extract
4. Ferfar
5. Zone Certificate
6. Donor & Donee ID card - Aadhar Card & PAN card
7. 2 Witnesses - Aadhar Card & PAN card
8. 2 Identifiers - Aadhar Card & PAN card
9. All Parties Photo - 2 Nos.
10. All Parties Mobile No. & Email ID

ii) Residential Property (House/Flat)

• Flat/Raw house/Shop/Office First Sale Documents List:-
  • All title documents of land owner, Joint development agreement, GPA, & Sharing/supplementary Agreement, between land owner and builder, Power of Attorney if any, Search Title Report (Master File)
  • 7/12 extract or RTC (Records of Rights and Tenancy Corps)
  • Na Order
  • Building Plan copy sanctioned by the Statutory Authority
  • Commencement Certificate
  • Rera Certificate
  • Purchaser/Seller/Witness-2, Identifier-2 ID card
  • Photo-2
  • Power of Attorney (if available)
• Flat/Raw house/Shop/Office Resale Documents List:-
  1. Chain of Document -
     • Builder To 1st Owner, 1st Owner To Present Seller, All Registered Document With Index 2, Registration payment of Receipt.
     • A Copy of all registered previous agreements
  2. Search Title Report
  3. 7/12 extract / Property Card (for House/Row house/Bungalow)
  4. Ferfar (for House/Row house/Bungalow)
  5. Zone Certificate (for House/Row house/Bungalow)
  6. Non-Agricultural (NA) Order
  7. Building Plan copy sanctioned by the Statutory Authority
  8. Commencement Certificate
  9. RERA Certificate (After 2017 Construction)
  10. Completion Certificate
  11. Society Conveyance Deed
  12. Society Registration Certificate
  13. Society Share Certificate
  14. Society No Dues Certificate (for bank)
  15. Society No Objection Certificate (for bank)
  16. Electricity Bill
  17. Property Tax Receipt
  18. Property Tax No Dues Certificate
  19. Possession Letter from the Builder
  20. Parking Letter from the Builder/Co-Operative Society/Housing Board/BDA.
  21. If any loan on the property (Current or past) / Original Property Documents with Bank
  22. Seller (Vendor) & Buyer (Purchaser) id card - Addhar Card & Pan card
  23. 2 Witnesses - Aadhar Card & PAN card
  24. 2 Identifiers - Aadhar Card & PAN card
  25. All Parties Photo - 2 Nos.
  26. All Parties Mobile No. & Email ID
  27. Power of Attorney (if available)