Sale Agreement vs Sale Deed

Before deciding to go ahead with a property deal,an agreement which states all the conditions and terms of sale is a must to have. Both the seller and the buyer must come to an agreement on this.In fact, this is considered to be the base document that is used to build the process of transferring the property.

Before the sale deed is formed, a sale agreement is required to be framed. The agreement is required to be printed on a non-judicial stamp paper and duly signed by both the parties as in the seller and the buyer. If in case, at a later stage there are any legal issues, then this document can be produced in the court of law while closing the deal. Basically, the agreement is expected to state the procedure which would ultimately lead to the implementation of the sale deed.

What an agreement to sell states is that the situation under which the buyer proposes to purchase the property and the seller plans to sell the property. This is to make sure that both the seller and the buyer are on the same page with respect to the implementation of the sale. Doing so also ensures that without any dispute or confusion, the transaction goes through.

Below are mentioned some of the prime points which must be included in a sale agreement:

• Name, age and address of the seller and the buyer
• Place and date of implementation of the sale agreement
• Address of the property which is being sold with description
• Liabilities of the seller and the buyer
• Rights of the seller and the buyer
• Amount, time and mode of payment.

Details of how the property was received/purchased by the seller.

• Inspection of title deed
• Transfer cost and party responsible for its payment
• Timeline for completion of process
• Penalty in case of default
• Declaration by the seller that the property is not under any acquisition by the government
• Period for completion of transfer

Declaration by the seller that any tenants residing in the property under consideration will vacate the premises before the sale deed is signed. An exit clause with sufficient penalty may need to be specified, if such tenants do not vacate the said premises.

Declaration by the seller that all taxes and fees related to the property are paid in full at the time of execution of the agreement.

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