In this article, we are providing the format of agreement of sale -FORMAT OF AGREEMENT FOR SALE OF FLAT
Agreement for Sale
An “Agreement for Sale” in India is a legal document that outlines the terms and conditions under which a seller agrees to sell a property to a buyer. This agreement serves as a preliminary step before the actual transfer of ownership takes place. It is also commonly referred to as a Sale Agreement or Sale Deed Agreement. The Agreement for Sale helps formalize the understanding between the parties and sets out the conditions that need to be fulfilled before the property’s sale is finalized.
Key features of an Agreement for Sale include:
Parties Involved: The agreement identifies the parties to the transaction—the seller and the buyer—with their relevant details.
Property Details: The agreement describes the property being sold, including its location, size, boundaries, and other relevant details.
Sale Consideration: The agreement specifies the sale price or consideration for the property. It may also mention the mode of payment and any payment schedule if applicable.
Earnest Money: Sometimes, the buyer pays an amount known as “earnest money” as a token of their serious intent to purchase the property. This is usually mentioned in the agreement.
Conditions and Terms: The agreement outlines the terms and conditions that both parties need to fulfill before the sale is completed. This might include obtaining necessary approvals, clearances, and documentation.
Timeline: The agreement may mention a timeline within which the sale needs to be completed. This ensures that both parties adhere to the agreed-upon schedule.
Title and Ownership: The seller usually assures the buyer that they have clear title and ownership of the property and that there are no encumbrances or legal disputes related to the property.
Indemnity Clause: This clause stipulates that the seller will compensate the buyer in case any claims arise against the property’s title.
Delivery of Possession: The agreement may specify the date of delivery of possession to the buyer.
Witnesses: The agreement is usually signed by both parties and witnessed by at least two witnesses.
Stamp Duty and Registration: Depending on the value of the property and local laws, the Agreement for Sale might need to be executed on a stamp paper and registered with the local sub-registrar’s office.
It’s important to understand that an Agreement for Sale is a legally binding document, and both parties should carefully read and understand the terms before signing it. Once the conditions mentioned in the agreement are fulfilled, a Sale Deed is typically executed to transfer ownership of the property.
Local laws and regulations regarding property transactions can vary from state to state in India, including stamp duty rates, registration requirements, and other legal formalities. Therefore, it’s recommended to seek legal advice and consult local authorities or legal professionals to ensure compliance with the applicable laws while drafting and executing an Agreement for Sale.
Format of Agreement of Sale
FORMAT OF AGREEMENT FOR SALE OF FLAT
AGREEMENT FOR SALE
THIS AGREEMENT made and entered into at ________ on this ____ day of October 2014 BETWEEN Mr. _______________ age :____, Occupation :____, residing at_________________, (Which expression shall mean and include her heirs, executors, administrators and assigns etc., unless it be otherwise repugnant to the context or meaning thereof) which hereinafter referred and called the Party of the FIRST PART;
Mr. ___________________ Age______years, Occupation :_____, residing at ______________________________(Which expression shall mean and include his heir, executors, administrators and assigns etc. unless it be otherwise repugnant to the context to meaning thereof) of the party of the SECOND PART;
WHEREAS the party of the FIRST PART is a legal owner of the Flat ……………………………….
WHEREAS being lawful owner, the party of the FIRST PART has decided & agreed to sell & transfer the said Flat to the party of SECOND PART and the party of the SECOND PART being in need of the said Flat in the locality where the said Flat situates has decided & agreed to purchase/acquire the said Flat from the party of the FIRST PART for total price of consideration of Rs. _________________/- (_____________________) and upon the terms and conditions mutually agreed upon by and between the parties hereto as set out herein below;
NOW THIS AGREEMENT WITNESSETH IS AS UNDER:-
- The party of the FIRST PART do hereby agrees to sell and transfer the said Flat to the party of the SECOND PART and the party of the SECOND PART hereby agrees to purchase and acquire from the party of the FIRST PART, the right to occupy and all his right, title, interest in the said Flat for the total price or consideration of Rs. _________________/- (_____________________),
- The party of the SECOND PART has already paid Rs. _________________/- (_____________________), on dated : ______& Rs. _________________/- (_____________________), as a part payment out of total consideration amount i.e. Rs. _________________/- (_____________________), to the party of the FIRST PART and the party of the FIRST PART is acknowledging the same with a separate receipt annexed hereto.
- The party of the SECOND PART will pay the balance payment of Rs. _________________/- (_____________________), on the date of execution of Sale Deed and the said Sale Deed which will be executed within Two and half months from the date of Agreement of Sale.
- party of the FIRST PART hereby transfer along with the legal, physical & actual possession of the said Flat is handed over to the transferee at the time of execution.
- The party of the FIRST PART hereby declares that, he has not on or before the date of this agreement transferred, assigned, alienated or in any other way encumbered dealt with or other wise disposed off his right, title, interest in the said Flat in any manner whatsoever.
- party of the FIRST PART hereby declares, agrees and undertakes not to transfer, assign, alienate or in any other way encumbered dealt with or other wise disposed off his right, title, interest in the said Flat and/or not to induct any third party the said Flat during the currency of this agreement.
- The party of the FIRST PART has already paid all the outgoings, expenses like Municipal tax, water charges electricity charges etc. till this date and henceforth, the party of the SECOND PART shall pay the equitable and proportionate outgoing expenses from time to time.
- party of the SECOND PART shall be entitled to use, occupy and enjoy the said Flat exclusively at his own necessity and requirement.
- The party of the SECOND PART shall be entitled to use all common facilities like staircase, terrace, water, electricity, gallery etc. without any obstruction or hindrance from any one including the party of the FIRST PART and any other.
- The party of the SECOND PART shall become the member of the society of the said building and the FIRST PART and his heirs shall have no objection in respect thereof and the party of the FIRST PART shall execute necessary documents/papers etc. infavour of the party of the SECOND PART.
- party of the FIRST PART & his heirs have no objection if the Municipal tax of the said Flat is transferred in the name of the party of the SECOND PART by the concerned office of ___________________Municipal Corporation.
- The party of the FIRST PART shall obtain all the necessary permissions and No Objection from the concerned authority of _______, for intended transfer of the said Flat in favour of the party of the SECOND PART and the party of the FIRST PART shall co-operate with the party of the SECOND PART on that behalf .
- The party of the FIRST PART further agrees/undertakes that, he will always available to put up his signature and execute any deeds, documents, papers etc. in favour of the party of the SECOND PART for effective transfer of the said Flat in the name of the party of the SECOND PART.
- It is also agreed between the parties that provided if the party of the first part doesn’t co-operate or fulfill his conditions of para no. 12 & 13 then the party of the second part has full authority to recover the payment paid to the party of first part within 45 days from the date of cancellation of this MOU.
SCHEDULE OF THE PROPERTY
A residential Flat adm. About……Sq. ft. or thereabout, being Flat no….., ……………………………………………, within the limits of ……………………& within the Registration District & Sub-Dist. ……………….
IN WITNESS WHERE OF the parties hereto have hereunto set and subscribed their respective hands on the day and the year first hereinabove written.
SIGNED, SEALED & DELIVERED BY ]
the party of the FIRST PART ]
Mr. Amit Vithal Mane ]
in the presence of …… ]
SIGNED, SEALED & DELIVERED BY ]
the party of the SECOND PART ]
in the presence of …… ]
Date : ___ /__/__
R E C E I P T
Received from Mr___________________ age adult Rs. _________ (Rupees ________________) on dated ________ & Rs. ______________ (Rupees ________________) on dated ___________being the part consideration for the Flat bearing No. ______________ Tal & Dist. ______________ within the limits of _________________& within the Registration District & Sub-Dist. ______________
I say received Rs. ________/-