Must add clauses in property agreement as a investor
The contract that should cover all salient features in order to avoid running into any ambiguity in the future includes any form of property sales agreement. The selling agreement is the first move that puts the seller and the buyer under legal terms, whether it is the purchase by the builder of a house for building or the purchase by the builder of an apartment. The document needs to be reviewed in advance of its signature. At this initial stage, it might not be feasible for a buyer to appoint a lawyer, especially when the transaction is not large enough to add legal costs. A sales agreement sets out requirements for each side for all possible courses of action and obligations. An Agreement of sale is considered as a legal document in case of any dispute if the document is registered although there is no mention in the court of law that a sale agreement has to be a written one. A sale agreement is simply a statement that the seller is willing to sell and the buyer is willing to buy on their acceptable terms which may be written or unwritten as used to happen in earlier days in villages in presence of village elders! In practice, many builders convince buyers that the sale agreement does not need to be registered, as it will attract stamp duty on the value of the property as per the circle rate. But buyers must remember that, in the event of a dispute, the unregistered sale agreement will not hold well in the court of law. The IPC has many provisions to protect buyers, although the seller can also contest them. The Section 55(1)(f) in The Transfer of Property Act, 1882 elaborate regarding the obligation on both parties. The Consumer Protection Act, 1986 is the Act which seeks to provide for better protection of the interests of consumer. The Real Estate Regulation and Development (Act, 2016 (RERA). This Act governs development, marketing and sale of real estate projects to protect the interest of consumers in the real estate sector.
The complete details of the seller(s) and the buyer(s) supported by the address proof, the photo ID and the reference to the title of the property must be clearly stated in the official records of the registrar's office. The agreement should contain a description of the property with a certified building plan and a floor plan. The legal aspect of the property can be checked by appointing a lawyer to verify the document from the government records accessible against small fees by appointing a lawyer. The clauses in a sale agreement are important because they outline everything that will go into making this a successful transaction, which is completely legally correct.
The 'Land Selling Deal' is subject to the Indian Contract Act, 1872, the Regulation Act, 1908, and the Property Act of Transfer. Several modifications have been made to make this Act more transparent.
An Agreement for Sale has to include the following clauses:
Sale Deed: It is a final document to pass, under the seal of the relevant registrar's office under the authority of the state, the complete right of property completely stated in the Selling Agreement from the seller to the buyer. If a large number of sales deeds are to be performed under one premise, after all proceedings, the Government Registrar can set up a bench on the premises. By paying a prescribed fee at the registrar's office, this service can be accessed.
Stamp Duty: The rate shall be determined by the appropriate authority and shall be revalued from time to time in compliance with the market price. The rate for the Circle often ranges from place to place. The stamp obligation is a matter of the constitution
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which ranges from state to state. The stamp duty is separate from the stamp duty paid on a land that is not under the act of cooperative society under the corporation act. The upper limit of a cooperative housing society involving a minimum of ten members is not defined.
Property Title:The financial assistance (loan) shall only be issued by the bank or other financial entity if the title of the property is clear. There must not be a house under any lien or mortgage. The selling agreement shall explicitly specify the duty for the seller to lawfully transfer the ownership of the property on behalf of the buyer promptly upon delivery of the complete payment for the property at the nearest registrar office.
Payment Terms: The deal must apply very explicitly to the agreed price of the land, along with a comprehensive payment plan. The payment is usually scheduled for a project under construction on the basis of the phases of construction. The payment conditions are defined as per mutual consent when purchasing a ready flat and payments are typically done on or before taking possession of the flat. It is better to seek legal assistance while signing the Sale Agreement to avoid any dispute in future. A reputed builder will have their legal cell to assist a buyer.