About Agreement to Sale
A property needs to be registered for the purpose of sale, transfer, gift or lease in accordance with Registration Act, 1908. As per Section 17 of the Registration Act, 1908, all transactions that involve the sale of an immovable property for a value exceeding Rs 100, should be registered. If someone doesn’t register a property while doing above mentioned transactions then the transaction cannot be proved in the court of law.
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An Agreement of Sale, also known as an Agreement to Sell, is a legal contract between two parties:
- Seller (Vendor)
- Buyer (Purchaser)
This agreement outlines the terms and conditions for the sale of a property, including:
- Description of the property
- Sale price and payment terms
- Completion date (possession handover)
- Conditions precedent (e.g., obtaining necessary approvals)
- Obligations and responsibilities of both parties
The Agreement of Sale typically covers:
- Property details (address, description, etc.)
- Purchase price and payment schedule
- Financier's details (if applicable)
- Completion date and possession handover
- Warranties and representations by the seller
- Termination clause (conditions for canceling the agreement)
The Agreement of Sale is a crucial document, as it:
- Protects both parties' interests
- Prevents misunderstandings
- Provides a clear understanding of the transaction
- Serves as evidence in case of disputes
The Agreement of Sale serves as a binding contract, protecting both parties' interests and outlining their obligations. It's a crucial document in the property buying/selling process, ensuring clarity, certainty, and compliance with laws.
Process of Agreement-to-Sale
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Frequently Asked Questions
The essential elements of an Agreement of Sale/Agreement to Sell include:
- Parties: Identification of the seller (vendor) and buyer (purchaser)
- Property Description: Detailed description of the property being sold.
- Sale Price: Clearly stated purchase price and payment terms.
- Payment Terms: Schedule of payments, including deposit, installments, and final payment.
- Completion Date: Date for possession handover and transfer of ownership.
- Conditions Precedent: Requirements that must be fulfilled before the agreement becomes binding.
- Warranties and Representations: Promises made by the seller about the property's condition or features.
- Covenants: Agreements or promises made by the seller or buyer, enforceable by law.
- Termination Clause: Conditions under which the agreement can be canceled.
- Signatures:Signatures of both parties, witnessed by at least two individuals.
- Date: Date of agreement execution.
- Consideration: Something of value exchanged between parties (usually money).
- Intention to Sell: Clear intention of the seller to transfer ownership.
- Intention to Buy: Clear intention of the buyer to purchase the property.
- 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:-
- Seller increase deal amount after token amount received.
- Impose on buyer self-made terms and conditions unlawful.
- Received token amount then refused or delay to registration.
- Seller hides mortgage property details
- Seller death his heirs hide legal heir's name & rights
- Property tax, Bills, Society maintenance not pay due amount
- Seller not provide required document to completion registration process.
Seller not provide required document to completion registration process.
- Buyer CIBIL problem
- Home Loan bank refused to legal ground approval after submission document
Select Package or Services our and paid charges.
Fill simple form regarding your personal details on Shivay Services website to create a document draft. Upload Documents online on our website. or Send Email / What's app.
Stamp Duty and registration fees to be paid towards register office. Govt. Fee, Stamp Duty and Registration fees varies state to state. Shivay Services help you calculate stamp duty/fee as per current laws/rules.
Registration of document is must as per registration act. All parties has to visit concern registrar office or done online. After satisfactory scrutiny of documents and entities involved, document is registered with easily.