A sales agreement, for the seller to the buyer, is the primary document that evidences ownership and vesting exact title to the property.

When an immovable property is to be sold, usually there are two types of agreements – a sale for agreement and a sale agreement or sale deed. The agreement for sale is necessarily needed to be stamped and registered, as per the registration law. There may exist a delay between the registration date and agreement execution. This is generally believed that with an agreement’s registration, the property’s rights would get transferred from the vendor to the buyer.

For any home buyer, the much-awaited sense of ownership of a dream home follows the execution and registration of the sale agreement.

Hence, the buyer is always advised to thoroughly scrutinize all the major terms of the sale agreement for ensuring that all rights are well-protected and an absolute title is conveyed to the property.

What are the components of a sales agreement?

A sales agreement is a document that supports the execution of the sale deed and registration of the same. The components of a sales agreement include

• Proposal of sale and purchase of a property
• Property Details and description
• Information about the property being free from legal encumbrance
• Details on the value of the property and payment schedule
• What will be the method of property delivery
• Delivery of property documents post the final payment

After the report is generated, you will get a dedicated time slot with the senior property lawyer who will clarify all your doubts and help you understand the report in detail. All this is just within 5-7 days.

Things to check before signing a Sales Agreement

Before signing a sales agreement, you should always double-check about the following things:

• Name of the parties involved in the signing of the agreement
• Schedule of payment
• Details of the property
• Details relating to possession of the property
• Map of the property
• Address of the property
• Encumbrance certificate
• The minimum time period required for transfer of property
• Penalty clauses, if any
• Methods of resolving a dispute, in case of occurrence

We can assist you with all aspects of your purchase/sale of a property – right from the drafting of the agreement to sell, up to the registration. Get property documents verified by our lawyers.

Stamping and Registration of a Sale Agreement

A crucial requirement for a sale agreement format to be valid, enforcing and binding, the properly formatted copy with all the necessary clauses should be signed by both the parties –seller and buyer.

A document that is not properly stamped or is unregistered will not be permitted as evidence, and this transaction is deemed to be incomplete until all the statutory requirements are completely fulfilled. When a party to the sale agreement is unable to be present for the execution and registration and is represented by a holder of power of attorney, this is necessary to examine this document thoroughly and is also duly stamped as well as registered.

Stamping and Registration of a Sale Agreement The amount of stamp duty payable on an agreement to sell depends on various factors such as the property's value, the nature of the transaction (sale/purchase/exchange/lease), etc. The party who executes the agreement to sell is liable to pay stamp duty. In most cases, the buyer pays stamp duty on an Agreement to Sell.