Agreement For Sale of an Apartment

This Packet Includes:

1. Description and Instructions

2. Agreement for Sale of Apartment

Description and Instructions

Agreement For Sale of an Apartment

A contract for the sale of immovable property such as a house or an apartment is a contract laying down that the 'Sale' of such property shall take place on the terms settled between the parties in the contract.

Sale is a transfer of ownership in exchange for a price paid or promised or part paid and part promised. The transfer by way of sale of tangible immovable property of the value of rupee one hundred and above must be made by a registered instrument. The transfer by way of sale of tangible immovable property of the value of less than one hundred rupees may be made either by a registered instrument or by delivery of the property.

According to Transfer of Property Act, immovable property does not include standing timber, growing crops or grass.

Some important features and instructions

1. Terms for Payment
The buyer and seller have to agree upon the terms on the price and other expense for transfer of property. The time required for payment of last installment of property must be decided upon.

2. Transfer Title of Property
Title of property is important document in order to secure the sanction of mortgage or loan from a bank. The title of property should be transferred to the buyer’s name when the seller receives the amount agreed by buyer. The transfer of title is last step in the transaction. Seller has to register the property in buyer’s name in the local registrar office in which jurisdiction the property belongs.

3. Stamp Duty
Stamp duty rates are fixed for properties by the authorities. The rate may vary from state to state. The buyer has to ensure that seller has registered the property in buyers name on the rate levied for the property transferring.

4. Registration

All the documents to be registered, have to be accompanied by a prescribed registration fee as per the State / Region where it’s to be registered. Since rules and regulations differ from state to state, please ensure that the correct Apartment Ownership Act is mentioned in the Agreement which correspond to that particular State’s laws.

Note: Please seek independent legal and financial advice when signing a sales deed and ensure all copies of documents including the sales deed is properly read and understood.