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A Real Estate Purchase Agreement is a legally binding contract between a property buyer and seller in India that details all the terms of their property transaction. It spells out the agreed purchase price, payment schedule, and specific conditions that both parties must meet before the sale can go through.

Under the Transfer of Property Act 1882, this crucial document must include precise details about the property, registration requirements, and any encumbrances. It also covers important elements like possession date, property taxes, utility transfers, and what happens if either party backs out. Once registered, it becomes the foundation for completing the property transfer at the Sub-Registrar's office.

You need a Real Estate Purchase Agreement the moment you and a property seller agree on basic terms like price and payment schedule. In India, having this agreement in place before paying any booking amount or deposit protects both parties from potential disputes and ensures compliance with the Transfer of Property Act.

The agreement becomes essential when dealing with large transactions, properties under construction, or installment-based payments. It's particularly important when buying from builders or in cases involving multiple stakeholders. Getting it drafted and reviewed by a legal professional before making any significant payments helps prevent future complications during property registration.

• Real Estate Sales Agreement Contract: Standard comprehensive agreement for straightforward property purchases, covering all essential terms and conditions
• Real Estate Option To Purchase Agreement: Gives buyer exclusive right to purchase within a specific timeframe while paying option fee
• Letter Of Intent To Purchase Land: Initial non-binding document outlining basic terms before formal agreement
• Real Property Sales Contract: Detailed version for complex properties with specific conditions or commercial use
• Letter Of Intent To Sell Property: Seller's preliminary commitment document stating intent and basic terms

• Property Buyers: Individual home purchasers, real estate investors, or companies acquiring property for business use who commit to the purchase terms
• Property Sellers: Current owners, builders, development companies, or property dealers who agree to transfer ownership
• Real Estate Lawyers: Draft and review agreements, ensure compliance with local property laws, and protect clients' interests
• Property Agents: Facilitate negotiations, help structure basic terms, and coordinate between parties
• Sub-Registrar Office Officials: Government authorities who verify and register the final agreement under the Registration Act
• Bank Representatives: Review agreements for loan processing and ensure proper documentation for mortgage approval

• Property Details: Gather complete property description, boundaries, survey numbers, and built-up area from ownership documents
• Ownership Verification: Collect title documents, tax receipts, and encumbrance certificate from relevant authorities
• Financial Terms: Document agreed purchase price, payment schedule, and mode of payment
• Party Information: Compile accurate legal names, addresses, and ID proofs of all buyers and sellers
• Timeline Planning: Set clear dates for payment installments, document submission, and possession handover
• Special Conditions: Note any specific requirements about utilities, fixtures, or pending approvals
• Registration Details: Prepare stamp duty calculation and registration fee requirements as per local rules

• Property Description: Detailed legal description including exact measurements, boundaries, and survey numbers
• Party Details: Full names, addresses, and legal capacity of buyers and sellers
• Consideration: Purchase price, payment terms, and schedule of installments
• Title Guarantee: Seller's warranty of clear title and disclosure of any encumbrances
• Possession Terms: Specific date and conditions for property handover
• Default Provisions: Consequences and remedies for breach by either party
• Registration Clause: Commitment to register under the Registration Act 1908
• Governing Law: Jurisdiction clause specifying applicable Indian state laws
• Force Majeure: Provisions for unforeseen circumstances affecting completion

A Real Estate Purchase Agreement differs significantly from a Real Estate Contract in several key aspects, though they're often confused. The main distinction lies in their scope and enforceability under Indian property law.

• Legal Formality: Purchase Agreements are more comprehensive and formally structured, requiring registration under the Registration Act, while Real Estate Contracts can serve as preliminary documents without mandatory registration
• Binding Nature: Purchase Agreements create an immediate legal obligation for property transfer, while Contracts may outline terms without immediate transfer commitment
• Documentation Detail: Purchase Agreements must include complete property specifications, payment schedules, and title guarantees, while Contracts can be less detailed
• Transfer Timeline: Purchase Agreements typically specify immediate or near-term property transfer, while Contracts might cover longer-term arrangements or conditional transfers
• Purpose: Purchase Agreements facilitate actual property sale and transfer, while Contracts might cover broader arrangements like property development or usage rights