What are the clauses one must check in a flat sale agreement in India?

Below are the few important clauses to check in a sale agreement

• Title:

Generally, property sale agreements are executed under the following titles

1. Agreement of sale
2. Agreement for sale
3. Agreement to Sell
4. Sale cum construction Agreement:

Choose the right title for your agreement

• Date & place:

The 1st line of agreement must have date and place of the agreement execution.

• Parties (Seller & Buyer)

Seller’s name, age, address, and pan number

Buyer’s name, age, address, and pan number

• Property schedule

Property schedule is the description of the property. Generally, a property schedule has three sub-schedule. They are schedule A, Schedule B, and Schedule C

Schedule A: Land conversion details (from agricultural to residential). Land survey number and measurement of the land where this apartment is built

Schedule B: Area of undivided land share

Schedule C: Super buildup, build up, and carpet area of your flat

• Mother deed:

Details of how seller acquired the property. Details include mother deed registration number, date, Khata and property tax ID.

• Payments: (advances, tax, and remaining settlement)

1. Total consideration price
2. Token advance
3. Payment at the time of sale agreement sign
4. TDS
5. The remaining balance of sale consideration

Payment terms in figures and words, Mode of payment

Beneficiary name, bank account number, bank name, transaction numbers, and date of transaction.

• Deed registration date:

Tentative date of sale deed registration. The seller or his GPA holder should agree to execute the Sale Deed in favour of the buyer.

• NOCs and their charges:

Seller obtains “No Objection Certificate” (NoC) from Bank, society office. Seller pays NOC-related charges to Apartment Association and obtains NOC before the registration of deed of sale

• Free from encumbrance

Seller conveys the Schedule Property free from all encumbrances, attachments, court proceedings

• Charges & Bills:

Seller pays any maintenance charges, water charges, electricity bills, and any other bills raised against the scheduled property by the Resident’s Welfares Association until the date of registration of sale deed.

• Stamp duty & Registration charges:

The buyer or his nominees shall bear the stamp duty and registration charges and other incidental charges in respect of the sale deed for the Schedule Property.

• GPA or agreement with other parties:

The seller should confirm that they have not entered into any agreement or GPA with any other person or persons prior to your sale agreement

• Delayed possession:

In case of delay in delivery of possession, seller shall pay 18% interest on net amount paid by buyer, for the duration for delay

• Produce original documents:

Seller should produce up-to-date property tax and any other relevant documents for the purpose of registration of sale deed as demanded by the Sub Registrar and also produce all the original documents at the time of Registration.

• Termination:

if any side decides to retract from property transaction and does not make payments or execute the documents, they will be liable for a penalty of an amount of Rs. 2,00,000/- (approx figure)

Specifically, if the seller back out from the transaction, the seller shall return all payments received as advance (including TDS paid by buyer, if any) and also pay Rs. 2,00,000/- as penalty.

If buyer backs out or does not complete the entire transaction in the timelines envisaged, provided the seller provides all necessary documents, The buyer will forfeit Rs. 2,00,000/- as penalty.

In case of mutual termination, all payments (without any interest) from either side should be completed within 15 days.

• Delivery of possession and original documents:

Seller should deliver the vacant possession and all the original title deeds of the Schedule Property to the PURCHASER after payment of balance sale consideration amount and at the time of registration and execution of the Sale Deed. The documents include mother deed, tax paid receipt, occupation certificate and khata.

• Cooperation of mutual parties:

The parties herein should mutually co-operate in smooth implementation of the terms and conditions of this Agreement of Sale.

• Dispute Jurisdiction:

Jurisdiction of court in case of dispute.

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Thank you for reading….