Agreement for Sale and Sale Deed

What is Agreement for Sale?

What is Agreement for Sale –

Agreement for sale is a document which contains terms and conditions of the sale of a property. It includes the terms and condition regarding the amount at which the flat to be sold, the time limit for both the parties to complete the sale and future date of full payment.

Benefits of registration of Agreement for Sale –

It obligates the buyer and seller that throughout the sale process they must follow the terms and conditions mentioned in the agreement for sale until the registration of final sale deed gets registered. Agreement for Sale is the base document on which the sale deed is drafted (Sale deed is the document prepared at the time of full payment made by the buyer and when the actual transfer of the property takes place).

Some IMP Clauses for property buyers in Agreement for Sale -

Following are the five very important clauses which should be included in the Agreement for Sale to protect the rights and interest of the buyers.

These clauses are –

1. Right to abort the deal by a buyer in case of sellers default or non-compliance,

2. Penalty to a seller in case he cancels the deal,

3. Clearance of outstanding dues by the seller,

4. Indemnity clause stating that there will be compensation in case either party fail to honor the contract,

5. Force majeure clause stating – In case property gets damaged due to natural calamity then there should be no compulsion on buyer to complete the transaction.

Stamp Duty and Registration Charges for Sale Deed/Agreement in Pune -

If the property is located in Corporation or Municipal Council area – 5% Stamp Duty, 1% LBT and 1% Registration Charges or up to Rs. 30,000/- whichever is less.

If the property is located in Rural area – 4% Stamp Duty, 1% LBT and 1% Registration Charges or up to Rs. 30,000/- whichever is less.

Required Documents –

1. NA Order (if available),

2. Commencement Certificate,

3. Completion Certificate,

4. Sanctioned Plan (Blue print) copy,

5. Tax Receipt,

6. Electricity Bill,

7. If society is formed: a) Society Registration Certificate and b) Share Certificate (if issued),

8. ID proofs of Parties Eg. PAN Card, Aadhaar Card, etc.,

9. Copy of previously Registered Title Deeds (i.e. Agreement between Builder to First Purchaser till Current Owner/s along with Index II and Registration Receipt of the same),

10. Builder/Society NOC as the case may be (not required for registration).

Process steps for Registration -

1. Collection of required information and documents,

2. Document review,

3. Drafting of Agreement for Sale,

4. Fixing appointment and visiting SRO for the Registration Process.