Things to keep in mind while entering into agreement for sale

Things to keep in mind while entering into agreement for sale
  • General
  • Tuesday 17th September 2019
  • Author: Shreya Uppal

Highlights

  • The homebuyers must be aware of their rights and duties while buying a property.

  • An agreement for sale is an agreement to sell a property in the future. It contains the terms and conditions of any prospective contract of sale. Any violation of terms of an agreement to sell can result only in a suit for damages.

  • The agreement must be witnessed by two people, each from the buyer’s and seller’s side.

The homebuyers must be aware of their rights and duties while buying a property. Although some relief and transparency have been provided to the buyers after the introduction of the RERA Act, 2016, still a buyer should have a good eye for detail while entering into agreement for sale.

Agreement for Sale
As per Section 2 (c) of the RERA Act, 2016, "agreement for sale" means an agreement entered into between the promoter and the allottee. An agreement for sale is an agreement to sell a property in the future. It contains the terms and conditions of any prospective contract of sale. Any violation of terms of an agreement to sell can result only in a suit for damages.

Important things to keep in mind while entering into a sale agreement
1. Without hiring a legal expert, a buyer can himself identify and verify some important details in the agreement.
2. An agreement for sale must contain the seller’s complete details such as his proper full name along with the
PAN of the seller, address and bank account information. It should also provide the exact details of the property’s location and other necessary details.
3. The agreement must be witnessed by two people, each from the buyer’s and seller’s side.
4. The agreement must confirm the authenticity of the
title documents and ownership transfer and also must reflect that all dues relating to the concerned property till the date of transfer have been cleared.
5. The agreement must
fully indemnify the buyer from any disputes relating to the title and possession of the property concerned.
6. For the purpose of transfer of flat, the date of possession must be properly mentioned in the agreement. If the possession is not given by the declared date, the buyer has all rights to sue for the same.
7. The clause relating to payment schedule must be laid down in agreement. In order to avoid ambiguities in the future, the payment schedule must
specify details of each installment.
8. A dispute resolution clause must be stated too to settle the relevant matters through litigation.
9. Some additional benefits which are to be incorporated by the buyer can also be mentioned there in order to avoid any proper communication later on.
10. In case of failure from any side to follow any of the important conditions, a
penalty clause must be incorporated too in the agreement.

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