Without a doubt in any property transaction, maximum risk is on the homebuyer. All property dealings carry certain degree of risk. Consequently, for every buyer it is exceedingly essential to protect your interests before signing the dotted line on the agreement. Wondering which agreement? Well, it’s the Property Sale Agreement. This is an indispensable document to uphold the buyer’s Interest. If you’re feeling lost, let me put things in simple words.
Property Sale Agreement: What is it?
To begin with, an agreement for sale is a legal document that specifies the terms and conditions, under which the property in question will be transferred. As a rule implemented by The Transfer of Property Act, 1882, a contract for the sale of immovable property is essential which regulates the matters dealing with the sale and transfer of house property. The document defines the terms settled between the parties.
The sale agreement mentions the property address, area of the property in question, additional charges, payment plan clauses, delivery date, address of the buyer and seller, the amount decided for the property, advance amount paid by the buyer and so on.
Additionally, if the seller fails to sell or hand over possession of the property to the buyer, the latter enjoys the right of definite act, under the provisions of the Specific Relief Act, 1963. On the other hand the seller enjoys similar right to take step against the buyer. It is good to get the agreement verified by a legal expert to avoid future hassles. Most importantly, few clauses if overlooked, the agreement might cause a considerable amount of problem in the future.
Property Sale Agreement: Checklist for Buyer
- Personal details of the seller (complete details)
- Title documents
- Property and its Description
- Date of possession
- Cost of the property
- Payment schedule
- Termination clauses
- Dispute resolution
- Amenities
- Free from Encumbrances
- Penalty
First and foremost, no change can be done once the agreement is drafted and registered. In case any modification needs to be done, the approval of the buyer is essential. Besides, a supplementary agreement should be done.
Well, these are some of the essential clauses to confirm in a Sale Agreement. However, there are many hidden clauses in the contract at times. Hence, it is very important to go through each clause methodically. Consult a legal advisor before proceeding with it.
To Sum up
This blog intends to explain why is it important to have an agreement of sale before investing is a real estate property. All it takes is a little bit of homework. Subsequently, homebuyers can stay away from problematic situations. Buyers generally get stuck with their booking amount when Terms and Conditions are not read properly. In simple words, preventative measure is always important.
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