The Agreement For Sale of Immovable Property is a crucial legal document used in Indian property transactions to formalize the intention to transfer ownership of immovable property from seller to purchaser. This agreement serves as a preliminary contract that precedes the final sale deed, setting out the terms and conditions under which the transfer will take place. It must comply with the Transfer of Property Act 1882, Registration Act 1908, and state-specific property laws. The document is essential for both residential and commercial property transactions, providing legal protection to both parties by clearly defining the property details, sale consideration, payment terms, possession arrangements, and respective obligations. While not mandatory to register in some states if it's a short-term agreement, registration is recommended for better legal protection and enforceability.
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1. Parties: Details of the seller(s) and purchaser(s) including names, addresses, and legal capacity
2. Background: Brief context of the transaction and property ownership history
3. Definitions: Definitions of key terms used throughout the agreement
4. Subject Matter of Sale: Detailed description of the property being sold and confirmation of the seller's right to sell
5. Sale Consideration: Purchase price, payment terms, and schedule of payments
6. Mode of Payment: Specifics of how payments will be made and acknowledged
7. Possession: Terms and conditions regarding the handover of property possession
8. Title and Ownership: Declarations regarding clear title and ownership rights
9. Seller's Representations and Warranties: Declarations and guarantees by the seller regarding the property
10. Purchaser's Representations and Warranties: Declarations and commitments by the purchaser
11. Completion Obligations: Steps to be taken by both parties to complete the sale
12. Expenses: Division of costs related to the sale including stamp duty and registration
13. Default and Consequences: Remedies and consequences in case of breach by either party
14. Notices: Method and addresses for serving notices between parties
15. Governing Law and Jurisdiction: Applicable laws and courts having jurisdiction
16. Execution: Signature clauses and witness details
1. Mortgage Details: Required if the property is currently mortgaged, detailing the process of obtaining release
2. Development Rights: Necessary for properties with unused development potential or TDR rights
3. Pending Litigation: Required if there are any ongoing legal proceedings affecting the property
4. Third Party Rights: Needed if there are existing tenants or other rights holders
5. Society NOC: Required for apartments/flats in housing societies
6. Force Majeure: Optional clause for unforeseen circumstances affecting completion
7. Property Tax Arrangements: Details of pending taxes and future liability if relevant
8. Broker/Agent Details: If the sale is through a broker, including commission details
1. Schedule A - Property Description: Detailed description of the property including boundaries, measurements, and identifying features
2. Schedule B - Payment Schedule: Detailed breakdown of payment installments and timelines
3. Schedule C - Title Documents: List of all title and ownership documents
4. Schedule D - Encumbrances: List of existing charges, liens, or encumbrances if any
5. Schedule E - Completion Documents: List of documents to be executed/provided at completion
6. Appendix 1 - Property Plans: Architectural plans, layout maps, and approved drawings
7. Appendix 2 - Chain of Title: Historical ownership details and documentation
8. Appendix 3 - Permissions and Approvals: Copies of relevant governmental and regulatory approvals
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