Changes in agreement of Sale Deed
Invariably, all of us enter the real estate market with a greater deal of confusion in our heads. For instance, a rookie wouldn’t be able to tell the difference between the agreements to sell as well as the sale deed. They do sound as if they are one and the same things. As one upgrade from being the greenhorn to the researcher, you do find out what mistake it was to assume that things were the same.
Now you know that the agreement to sell the document that sets the terms and conditions that is based on which the transaction of the property would be completed. The creation of sale deed, on the other hand, basically means that the purchase has been made.
There are, however, still details that might not have caught the attention as far as the sale agreements go.
Do note that Indian law doesn’t specifically mention anything about the written sale agreements. To make the document valid legally, it must be registered under Indian Contract Act, 1872. In case you fail to do so and document remains non-registered, whatsoever, it has no legal validity.
Also, it is crucial for parties involved in the transaction to lay out the terms and conditions in such manner that document remains in the case of disputes arise in the future and one has to move the court.
Making a difference
Naturally, the agreement to sale mentions all property details like the owner, location, ownership type, etc., the parties involving all the details of the buyer and the seller, the time within which transaction must be completed, various payments, etc. At this point in time, it is important to note that there isn’t any limit on the clauses you can insert in the document and for the sake of the clarity of future, it is the best that you do so.
This is one prime reason why new-age sale agreements have clauses that didn’t exist in the old times.
In the big cities, most purchases are made with help of borrowing. Now, the banks wouldn’t process the application for the home loans till you present in from the agreement to sell. In such a scenario, you actually are signing up for something without being sure whether or not the banks would give you the money that you are seeking for. The earnest money will be forfeited if the bank refuses to lend the money at the later stage. That is why the property buyers their days insert the clause in the agreement stating that the deal would actually materialize only after bank sanctions a specific loan amount.
Utility and membership
The sale agreements do at times mention that the utility bills i.e. water and electricity charges and the property tax must be cleared to make the purchase possible. There are additional clauses that are actually made in the document with regard to this. Urban housing societies proffer plenty of luxuries. They have gymnasiums, in-house clubs, etc. However, the residents have to pay specific charges to become members. Those who purchase any resale home in a housing society are seen inserting the clause that says that buying also covers the membership fees of numerous kinds. This makes sure that the seller doesn’t ask for any additional money to transfer the membership rights.
In India, the property buyers have to bear the charge that comes in the form of the stamp duty which basically varies between 4-10% of the value of the transaction. It is, however, not legally binding on the property buyers to make the payment. The two parties could share it. In case, the sellers and buyers have struck such a deal, this part must be
In India, buyers have to bear the cost that comes in the form of stamp duty, which varies between 4-10 percent of the transaction value. However, it is not legally binding on buyers to make this payment. The two parties could also share it. In case the buyer and the seller have struck such a deal, this part must be clearly mentioned in the sale agreement.