Things about the Terms of Agreement that Everyone should Know About
Jun 13, 2018 Legal Guidance
Most of us who enter the real estate market with great confusion. For example, some would think that the agreement of sale and sale deed is the same thing. But, it is not. Agreement of sale is the document that holds all the details of the agreement between the parties. While the sale is deed is the legal document which tells that the purchase and sale have been done.
Like the above, there may be some more details about the terms of an agreement that may not have got your attention.
According to the Indian real estate laws, unless the agreement has been registered under the Indian Contract Act, 1872, it isn’t valid. To make the document legally valid it must be duly registered. Unregistered documents have no legal validity and are hence illegal.
It also required for the parties to lay down the terms and conditions of the agreement in such a way that it remains valid if any dispute arises between them in future and one has to move to the court.
Like the above, there may be some more details about the terms of an agreement that may not have got your attention.
According to the Indian real estate laws, unless the agreement has been registered under the Indian Contract Act, 1872, it isn’t valid. To make the document legally valid it must be duly registered. Unregistered documents have no legal validity and are hence illegal.
It also required for the parties to lay down the terms and conditions of the agreement in such a way that it remains valid if any dispute arises between them in future and one has to move to the court.
Making a difference:
A sale agreement mentions all the details by all the parties involved, every detail about the transaction, the time limit in which the payment should be completed and the number of parts in which the whole payment will be completed. One should note that there is no mention of the limit of the clause that can be in the agreement. Hence, one can have as many clauses added to the agreement as they wish.
New age agreement, therefore, has clauses that the old agreement didn’t have before:
New age agreement, therefore, has clauses that the old agreement didn’t have before:
1.Home loan:
Most of the homes that are purchased these days are with the help of banks in terms of home loan. But the banks generally don’t process the application for your loan unless you present in from them the agreement to sell. In this case, you are signing up for something without being sure if the bank will lend you the money or not. The earnest money will be forfeited if the bank refuses to give out the loan at a later stage. Hence, the clause was added in the contract which makes sure that the deal will materialize only after the bank pays the loan amount.
2.Utilities and memberships:
This clause in the sale agreement mentions that the all the utility bill like electricity, water etc, must be paid before the sale deed to make the purchase possible. In current times, where people prefer to buy the houses in well established housing societies, the buyers include a clause that mentions that the seller should pay for the various memberships so that the seller does not ask for the transfer charges later.
3.Stamp duty:
In India, stamp duty must be paid at the time of purchase. However, it is not required for only the buyer to pay the stamp duty. The seller can pitch in as well and they both can share the stamp duty charges. If this kind of deal is stuck, it must be mentioned clearly in the agreement.
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