SALE OF IMMOVABLE PROPERTY
Section 54 of the Transfer of Property Act, 1882 defines Sale as:
“Sale is a transfer of ownership in exchange for a price paid or promised or part-paid or part-
promised.”
The contract for sale of immovable property must be in writing.
Section 55 of the Transfer of Property Act, 1882 lays down the duties, obligation and
rights of the vendor and purchaser under an agreement of sale, as well as for sale in
case of absence of contract to the contrary.
Sale deed is chargeable with the stamp duty.
Where the value of the immovable property is more than Rs. 100, it is required to be
compulsorily registered.
An agreement for sale and sale deed should clearly show: who are the parties to the
contract (Vendor/Vendee or Vendor/Purchaser or Seller/Buyer); the subject matter; the
intention to sell and buy; the price agreed and how it is to be paid and other terms of
the contract.
The contract for sale of immovable property is usually preceded by an agreement for
sale
AGREEMENT FOR SALE
THIS AGREEMENT is made at …………on this …………day of……….
BETWEEN
Mr. A aged……..s/o……….r/o….. (hereinafter referred to as the VENDOR which expression
shall, unless repugnant to the context or meaning thereof shall mean and include his heirs,
executors, administrators and assigns of the FIRST PART).
AND
Mr. B aged ……….s/o……….r/o….. (hereinafter referred to as the VENDEE/PURCHASER
which expression shall, unless repugnant to the context or meaning thereof shall mean and
include his heirs, executors, administrators and assigns of the SECOND PART).
WHEREAS the Vendor is the absolute owner of the property bearing
no…….admeasuring….situated at………(hereinafter referred to as the said property).
AND WHEREAS the Vendor has agreed to sell the said property to the Vendee at the price
and on the conditions mentioned hereinafter.
NOW IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS:
1. The Vendor hereby agrees to sell, transfer and convey the said property in favour of
the Vendee.
2. That the consideration of Rs….is to be paid by the Vendee to the Vendor. Rs…..is to
be paid at the execution of this agreement as earnest money. Rs….on…..(date) and
lastly Rs….at the time of final sale deed.
3. The Vendor acknowledges the payment of Rs….as earnest money paid in
cash/cheque/dd no…drawn on ……(Bank name and Branch) by Vendee.
4. The Vendor shall make out a marketable title to the said property free from
encumbrances and reasonable doubts.
5. The Vendor shall deliver to the Vendee the title deeds relating to the said property in
his possession and power on execution of these presents for inspection and
investigation of the title by the Vendee or his advocate.
6. The Vendor agrees to apply for, obtain and furnish unto the Vendee all such
permissions as may be necessary under the laws for registration of Sale Deed.
7. The Vendor and the Vendee hereby agree that the sale will be completed within six
months from the date hereof.
8. All the taxes, levies etc due and payable against the said property shall be paid by the
Vendor till the completion of sale and thereafter it will be the responsibility of the
purchaser. The Vendor shall handover all the tax receipts etc. duly paid to the Vendee
at the time of completion of sale.
9. The Vendor agrees to handover actual, physical and vacant possession of the said
property unto the Vendee at the time of sale deed.
10. That the expenses towards the payment of stamp duty, registration charges and all
other incidental expenses for agreement for sale and sale deed shall be borne out by
the Vendee.
11. If the Vendor fails to make out the clear marketable title to the said property as
aforesaid then the Vendee will have the right to cancel this agreement by giving atleast fifteen days notice to the Vendor and after the expiration of fifteen days the
agreement shall stand terminated and the Vendor agrees to return the earnest money
to the Vendee.
12. If the Vendee fails to perform his obligations under this agreement within the time
stipulated then the Vendor shall be entitled to cancel this agreement by giving atleast
fifteen days notice in writing to the Vendee. On termination the Vendor will be
entitled to forfeit the earnest money paid by the Vendee.
SCHEDULE OF PROPERTY
Details of the property to be mentioned.
IN WITNESS WHEREOF parties hereunto have signed this document on the date and place
first above written in the presence of following witnesses.
VENDOR
VENDEE
WITNESSES:
(1)
(2)
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