HOW TO DRAFT A SALE AGREEMENT ?
A Sale Agreement is a very common deed that one executes in transactions pertaining to immovable properties. In this article, let us see, the major ingredients of a normal sale agreement.
a) A sale agreement should contain the name, father’s name, age and address of the seller and purchaser.
b) It shall also contain the date of the agreement as well as the place where the agreement is executed.
c) A brief description of the property which is the subject matter of the sale shall be given in the body of the agreement and the detailed description of the same shall be given in a separate schedule which is at the last portion of the sale agreement. As a normal convention, the property which is the subject matter of a sale agreement is referred in the agreement as schedule property.
d) The sale agreement shall contain a clause, to the effect that the seller has offered the property for sale, to the purchaser and the purchaser has agreed to purchase the property from the seller.
e) There shall be a mention of the total sale consideration amount, as well as the amount which is paid at the time of entering into the agreement.
f) The period of the agreement shall be clearly spelt out in the agreement. It is the duty of the purchaser to pay the balance sale amount before the date of registration and get the property registered in his name.
g) The purchaser will have a right to appoint a nominee on his behalf for the purpose of registering the property.
h) It is ideal to give a brief description of the history of the property.
i) Normally, a penalty clause is provided in the sale agreement with an intention to derive commitment and seriousness from the parties to the agreement.
j) If there is any outstanding loan over the schedule property, the details of the same shall be mentioned in the sale agreement and the manner in which the seller shall clear the said loan has to be mentioned in the sale agreement.
k) If there are any other documents to be procured by the seller or any things to be done from the side of the seller before the date of registration, then the same shall find a place in the agreement.
l) Normally, all the expenses towards the drafting of the sale agreement, sale deed, stamp duty, registration charges etc shall be borne by the purchaser.
m) The possession of the property shall be handed over to the purchaser on the day of the registration. If the possession is handed over at the time of sale agreement, then the stamp duty on the sale agreement will considerably vary.
n) The original documents are normally handed over by the seller to the purchaser at the time of registration.
o) The sale agreement shall be signed by both the seller and purchaser and the same shall be witnessed by two witnesses.
p) Only advocates and registered deed writers are authorized to draft a sale agreement.