Agreement for Sale is one of the constituents of the property deeds & documents like Deed of Sale/Purchase, Deed of Lease, Mortgage, Deed of Leave and License, Deed of Property Development Agreement, and Deed of Power of Attorney apart from the general contract relating to sale of goods & services.
This specie i.e. Agreement for Sale relating to real estate in the form of residential flats, apartments, commercial units, professional offices, lands & bungalows, row houses, etc; had assumed immense significance in recent years stressing it’s need in the context of property investments in India.
An Agreement for Sale is prelude to the Deed of Sale/Purchase, Deed of Property Development Agreement, and Deed of Power of Attorney may be elaborated as a contract, arrangement, covenant, treaty, promise, pact, settlement, bargain, understanding and deal. It provides a stretch to a law firm to thoroughly investigate the title of the property and write Search Report and issue Certificate of Title.
In legal parlance the Agreement for Sale is an instrument whereby and wherein Seller agrees to sell and transfer and the Purchaser agrees to purchase and acquire the property which may be in form of residential flats, apartments, commercial units, professional offices, lands & bungalows, row houses, etc.
The instrument of Agreement for Sale is primarily governed by the enactments relating to TRANSFER OF PROPERTY and CONTRACT and envisages the terms and conditions upon which shall base the Final Conveyance in the form of Purchase/ Sale Deed or Transfer Deed. It may be incumbent upon the parties to the Agreement to make certain compliances without which the Sale/ Purchase deed cannot be concluded, executed and registered. Such compliances may be under various numerous statutory and regulatory laws as applicable to and affecting the nature of the property transacted and as incorporated in the enactments of Regional and Town Planning, Land Revenue, Rent Control, Easements, Land Acquisition, Laws relating to Freehold & Restricted Properties; Laws relating to Flats & Apartment Ownership; Laws relating to Agricultural & Non-Agricultural lands; Guardian and Wards to name the few.
Documentation in property transaction involves lots of paper work to be done and Agreement for Sale is of vital such work.
Forms of Agreement for Sale of:
- An Open Land
- flat with builder (under the Flats Ownership Law)
- Flat in a Co-operative Housing Society
- Flat in Apartment Condominium
- Land open/with structure
- Agreement for sale between original buyer and new purchase
- Lease of a flat/plot of land by a co-operative housing society to its member.