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Simple Real Estate Sales Contract Template for India

A comprehensive legal document governed by Indian law that facilitates the transfer of real estate property from a seller to a buyer. This contract outlines the essential terms and conditions of the sale, including property details, purchase price, payment terms, and transfer conditions. It ensures compliance with the Transfer of Property Act 1882, Registration Act 1908, and other relevant Indian property laws. The document includes necessary warranties about title, provisions for registration, and clearly defined obligations of both parties, making it a legally binding instrument for property transactions in India.

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What is a Simple Real Estate Sales Contract?

The Simple Real Estate Sales Contract is a fundamental legal instrument used in Indian property transactions to formalize the sale and purchase of real estate. This document is essential when transferring property ownership in India, whether for residential or commercial purposes. It must comply with various Indian legislations, including the Transfer of Property Act 1882, Registration Act 1908, and state-specific property laws. The contract typically includes detailed property descriptions, sale consideration, payment terms, possession details, and statutory compliance requirements. It's designed to protect both buyer and seller interests while ensuring legal compliance and proper documentation of the transaction. This type of contract is particularly important in the Indian context where property documentation and clear title transfer are crucial for avoiding future disputes.

What sections should be included in a Simple Real Estate Sales Contract?

1. Parties: Full legal names and addresses of the seller and purchaser

2. Background: Context of the transaction and brief history of the property ownership

3. Definitions: Key terms used throughout the agreement

4. Property Details: Comprehensive description of the property being sold including exact location and measurements

5. Sale Consideration: Purchase price and payment terms including deposit and balance payment schedule

6. Mode of Payment: Specified methods of payment and account details

7. Possession: Terms and timing of property possession transfer

8. Title and Ownership: Seller's warranties regarding clear title and right to sell

9. Registration: Obligations regarding registration of the sale deed and associated costs

10. Representations and Warranties: Standard warranties by both parties regarding their capacity and authority

11. Costs and Expenses: Attribution of various transaction costs including stamp duty and registration fees

12. Governing Law: Specification of Indian law as governing law and jurisdiction details

What sections are optional to include in a Simple Real Estate Sales Contract?

1. Conditions Precedent: Specific conditions that must be met before completion, used when there are pending approvals or clearances

2. Property Inspection: Details of property inspection rights and process, used when buyer requires specific inspection provisions

3. Encumbrances: List of existing encumbrances and plan for their discharge, used when property has existing mortgages or liens

4. Third Party Rights: Details of any existing tenancies or other third-party rights, used when property is tenant-occupied

5. Tax Matters: Specific tax-related provisions, used when there are complex tax implications

6. Force Majeure: Provisions for unforeseen circumstances, used in regions prone to natural disasters or uncertain conditions

7. Property Management: Interim management provisions, used when there's a gap between agreement and completion

What schedules should be included in a Simple Real Estate Sales Contract?

1. Property Description Schedule: Detailed technical description of the property including boundaries and measurements

2. Title Documents Schedule: List of all title documents and their chronological chain

3. Payment Schedule: Detailed breakdown of payment installments and timing

4. Encumbrance Schedule: List of existing encumbrances and status of each

5. Inventory Schedule: List of fixtures and fittings included in the sale

6. Compliance Schedule: List of required regulatory approvals and their status

7. Outstanding Dues Schedule: Details of any pending utility bills, taxes, or maintenance charges

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

India

Publisher

Ƶ

Cost

Free to use

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