Bangalore Real Estate Trends

The purpose and contents of this agreement

An agreement to sell is an important document in the process of sale or purchase of property.The agreement contains conditions that the parties agree upon.It binds them to these terms and conditions.

As against this,a sale deed is a written document executed by a buyer and seller.It gives details of how the seller got the property,at what price he is selling the property,assurance to the purchaser that the property is free from any encumbrance,i ndemnity clauses etc.

A sale deed is executed by both the seller and purchaser,and is registered with the office of the registrar. It is executed subsequent to the agreement to sell,and is based on the terms and conditions contained in and agreed upon in the agreement to sell.It is signed and executed by the seller and buyer on a non-judicial stamp paper. As such,it has legal value and can be produced as evidence.

An agreement to sell is the base document on which a conveyance deed is drafted. Every document of transfer of property through sale will be preceded by an agreement to sell. Usually, an agreement to sell is in writing. Although an agreement to sell may be oral, because of attendant risks, they are always made in writing.

Some details contained in an agreement to sell:

Names of the parties with their residential addresses and age Date and place of execution of the agreement Rights and liabilities of the parties Brief narration with details of documents on how the seller got the property Location and description of the property Agreed sale amount Mode and time of payment Time lines for various formalities to be completed and the responsibilities towards this Inspection of title deeds Expenses to be met Forfeiture and penalty clauses in case of default Conditions for delivery of possession Declaration by the seller that the property is not subject to any government acquisition etc Names,signatures and addresses of witnesses The provisions of such an agreement consists of the procedures to be followed leading to the execution of the conveyance or sale deed.

Agreement to sell is a very important document.It records the understanding reached upon between the parties,which is binding on both.After making preliminary enquiries,the parties negotiate on the price as well as on other terms and conditions,which form part of the agreement to sell.An agreement to sell protects the interests of both parties.It facilitates smooth culmination of the transaction without disputes.

_{Source: Time Property Dt: 6-8-10}