Agreement To Sell Clauses
An agreement to sell is at most times a written statement having terms and conditions related to sale and purchase of a property.
The following are some of the important clauses that need to be included in the Agreement to sell:
1. Indemnity Clause
An indemnity clause protects the rights of the buyer and must be drawn up with considerable forethought in order to prevent any possible conflicts.
Indemnity clauses in a Sale Agreement are intended to demand compensation from the seller should any potential damages or expenses occur. Before writing the indemnity provision, all potential circumstances must be taken into account.
2. Penalty Clause
The token amount is normally paid to the buyer to the seller to guarantee his interest in the purchase of the property. Often, for a legitimate reason, the transaction does not happen or the seller does find a better deal and he may not return the token amount. A penalty clause is recommended to ensure that the seller does not build a business out of such transactions.
3. Transfer of Memberships/Advances/Deposits
The seller is prescribed by this clause to pass on all the rights and conveniences he may have had during his ownership. A few examples are deposits made by the seller for club membership, electricity , gas, gym subscription.
4. Outstanding Dues
In the Agreement to Sell, it helps to include this clause as it prevents the seller from carrying on his outstanding dues to the buyer. This clause is protected by taxation, electricity / sewage / water bills, etc.
5. Right To Call Off The Deal
The right to reject and terminate the contract allows the buyer or the seller to terminate the offer without any implications. Reasons for terminating the deal may vary from personal conflicts and financial restrictions to rejection of the loan.
6. Payment Terms
The agreement must apply very explicitly to the agreed price of the land, along with a comprehensive payment schedule. The payment is usually scheduled for a project under construction on the basis of the phases of construction. The payment terms are defined as per mutual consent when purchasing a ready flat and payments are typically completed on or before taking possession of the flat. In order to prevent any potential conflict, it is best to obtain legal advice before signing the Selling Agreement.
7. Property Title
The financial assistance (loan) shall only be issued by the bank or any financial institution if the title of the property is clear. There must not be a property under any lien or mortgage. The selling agreement shall explicitly state the duty on the seller to legally transfer the ownership of the property on behalf of the buyer immediately upon completion of the full purchase of the property at the local registrar's office.
8. Stamp Duty
The rate shall be set by the competent authority and shall be re-evaluated from time to time according to the market price. The Circle rate varies from position to location as well. The stamp obligation is a matter of state and varies from state to state. The stamp duty under the act of society is different from the stamp duty paid on a property that is not under the act of cooperative society.
9. Sale Deed
It is a final document to pass, under the seal of the respective registrar's office under the jurisdiction of the state, the complete right of property completely stated in the Selling Agreement from the seller to the buyer. If a large number of sales deeds are to be performed under one premise, after all proceedings, the Government Registrar can set up a bench on the premises. By paying a prescribed fee at the registrar's office, this service can be used.