Property Sales Agreement in India: Drafting, Stamp Duty & Registration Process 2025

An agreement of sale for a property is a crucial legal document that outlines the terms of transfer between the buyer and seller. This easy guide sales agreement explains the drafting process, costs and registration requirements in 2025. The agreement includes property details, sale price, terms and conditions, payments and responsibilities of both parties. After drafting, the stamp duty must be paid, which varies from state to state and typically ranges from 5% to 7% of the property value. This is followed by registration at the local sub-registrar's office. Registration fees, normally 1-2%, make the agreement legally binding. Drafting should be accurate to avoid disputes; it is preferable to have legal assistance. Properly executed, this process ensures validity, security and protection to both parties in the transactions. 

Sales Agreement: A Quick Info

A sales agreement is a legally binding document that outlines the terms and conditions of a sale between a buyer and a seller. Here is the quick info for the property sale agreement: 

Meaning of a Sales Agreement: What is a Sales Agreement?

A sale agreement, also known as a land sale agreement, is a legal contract made between the buyer and the seller. It is defined under the Indian Contract Act, 1872 [1] and governed by the Transfer of Property Act, 1882 [2] (Section 54) and the Registration Act, 1908 [3] . This agreement records the consent of both parties to transfer property ownership in return for payment. It provides clarity, legal protection, and enforceability, ensuring that the property transaction is valid. Below are the essential elements of a sale agreement:

Quality Service Guarantee Or Painting Free

Unbeatable Price 5-Star Rated Partner! 2200+ Shades! Top Quality Paint Free Cancellation!

Get a rental agreement with doorstep delivery

Rental Agreement NOW

Find the BEST deals and get unbelievable DISCOUNTS directly from builders!

Find the BEST deals

5-Star rated painters, premium paints and services at the BEST PRICES!

FREE Estimate

• Clearly Defined Parties: The agreement must identify both the buyer and seller with full details of each party.
• Accurate Property Description: Complete details of the property, including location, dimensions, survey number, and boundaries, must be provided to avoid any future disputes.
• Sale Consideration: The agreement must clearly specify the property’s price, payment schedule, mode of payment, and any advance already made.
• Obligations & Rights: Duties of the seller to transfer ownership and the buyer's responsibility for payment should be clearly outlined. 
• Stamp Duty and Registration Compliance: Agreement must comply with the state-specific stamp duty [1] and registration laws to gain legal enforcement.
• Signature with Witnesses: Validity requires the signature of both parties and attestation by witnesses, ensuring authenticity and legal strength in court.

Why is the Sales Agreement Important?

No matter who you are buying or getting the property from, a written seller agreement or contract to sell a house is the only way to establish the authenticity of the property’s ownership legally. Without this sales agreement contract, you could end up in major trouble. This property sale agreement document ties you to the property that you’re purchasing.

Types of Sale Agreement

A real estate sale agreement and other agreements define the terms of transferring ownership between parties. These agreements vary by type, purpose and use, ensuring clarity and legal protection. Below are the main types [4] of agreement:

Essential Clauses Every Agreement to Sell 

These clauses are basic points that make the real estate sales contract a successful one. They will contain important factors such as –

• Description of the property and what’s included, such as what property, such as appliances and lighting fixtures
• The final cost of the property
• Payment method and date
• Contact details of the seller and the buyer
• Tax
• Maintenance (for apartment buildings)
• Indemnity clauses and more…

An agreement to sell typically includes numerous clauses that need to be addressed. Each of these clauses is necessary for a contract to be considered valid and complete for the sale of houses. A sale agreement definition in its entirety in a physical document must include the following information:

• Names of the buyer and seller, their age, and residential addresses
• Date and place of execution of the agreement
• Competence of parties to enter into the agreement
• Rights and liabilities
• Details and documents of how the seller came to own the property
• Location and description of the property
• Amount, time and mode of payment
• Timelines for the rest of the processes and division of responsibilities
• Title deed
• Period of completion of a transaction
• Expenses to be met and who will meet the cost of the transfer

Clauses to Pay Extra Attention to in a Sales Agreement

Some property agreements might have clauses that you need to take a closer look at. These might not be in your favour, so watch out for-

• As is, where it is – you’ll get the property in the exact condition it’s in, and the seller will not make any repairs.
• No access to property – you won’t be allowed to see the property until full payment is made.
• Right of way – you might need to let other people use sections of your property e.g., if you live on the ground floor, you need to let those living on the above floors have certain access.
• Lease- the buyer and the lessee should not be affected by the sale if the property you’re buying is leased out.
• Mortgage – look for details on who settles and loans, and how.
• No Dues – To show that the seller has no existing dues against his property.
• Dispute Resolution and Jurisdiction Clauses- The seller should hand over all the title deeds of the property to the purchaser within 15 days of the date of the agreement. This is done for scrutiny of the title; the opinion of the seller and advocate will be final.
• Clause with regards to Title Verification -If the seller’s title to the property is not approved by the buyer, the seller has to refund any token money the buyer has paid him in accordance with the sale purchase agreement. This has to be done within 7 days, or the seller will have to pay interest on this amount (12% per annum). 

When it comes to buying a house that’s still being constructed, look for-

• Delivery date – don’t agree to vague time frames, look for exact dates
• Tax payment – does the builder cover taxes in the final amount, or do you have to pay them?
• Right to alter specifications – if the house is still under construction, the builder could alter it any time before the handover.

What is the Difference Between a Sales Deed and a Sales Agreement?

A sale agreement and a sale deed are two important property documents. A sale agreement defines future terms of sale, while the sale deed confirms the transfer. Check the details with a sample sale agreement.

Sales Agreement for Commercial Property

A property purchase agreement, or a Sales agreement, for residential property or commercial property is considered critical. A sale agreement of property of any kind serves the same purpose as a commercial property or residential property purchase. The documents required for the sale and purchase of commercial property include –

• Sales Agreement
• Sales Deed
• Mother Deed
• Building Approval Plan
• Khata Certificate and Khata Extract
• Encumbrance Certificate (EC)
• Betterment charges receipt
• Tax Receipts (up to date)
• Stamp Duty

As you can see, the agreement for the sale of immovable property formats such as a home or office space, is not much different from movable ones, as we do need receipts and pay taxes for any purchase/sales.

Process of Executing a Sale Agreement in 2025

A sales agreement is a standard contract for the sale of real estate, so the process will remain the same in all states, except for a few minor differences. This process serves as a guide and will walk you through what to consider when executing a sales agreement.

• A sales deed needs to be executed on the requisite stamp paper. In Karnataka, the stamp duty for a sales agreement is 0.1% of the deal. The maximum amount payable is Rs. 20,000 for residential PROPERTY and Rs. 50,000 for commercial property.
• The buyer will pay the stamp duty at the SRO (Sub-Registrar’s office) through a DD or Bankers' Cheque drawn in favour of the Sub-Registrar. The document will then be franked with the official’s signature and a seal.
• If there are no changes in the sales deed and sales agreement, then you will not have to pay any additional stamp duty when you register your Sales Deed.
• A sales agreement does not have to be registered, but it can be registered if the buyer and seller both agree that it should be.
• When signing the agreement, it is best to use black ink and sign with your full name. The buyer's and seller's signatures are required at the bottom of each page and on the last page, as indicated.
• If changes need to be made, use a whitener and then make the necessary corrections. Then, you need to sign off on any changes that have been made.
• If there are joint buyers or sellers, all individuals involved must sign the documents as specified in point 5.

How Does a Sale Agreement Help You?

As a buyer, you need to look into numerous details, such as verifying documents, organising your finances, and allocating time during your workweek to complete these tasks. We make this process easier and stress-free. You receive regular updates and stay informed. This is all done at your convenience.

You won’t have to stand in long queues and deal with the hassle of registering your sales deal. You won’t have to worry about covering critical information in your sales deeds or missing out on/errors in your document, as our lawyers will do it all. This complete assistance makes the process of buying a home faster, simpler, and tension-free.

As you can see, this simple sales agreement is a key document for buying and selling residential and commercial properties. Without it, a legal and official sale can’t take place.

Sales Agreement Format

If you’re making a sales agreement, there is a particular sales agreement format that you need to follow. It is important that your agreement follows the same flow and contains all the same points. Simple example for an agreement to sell, you can use the one below if it is for an apartment, for an independent house you will need a different sales agreement sample, or you can modify this one with the correct property type. Remember, this is just a sale agreement format for a resale flat; you will still need to get it checked by a professional to be fully protected from any liability. They can spot mistakes that can help you save time and energy. Take a look at the house sale agreement format:

THIS AGREEMENT made at ………………….. this ………….. day of ………….., 2025 between <NAME>, son of ………………………… resident of …………………… hereinafter referred to as the Vendor of the ONE PART and B, son of ………………. resident of ……………….. hereinafter referred to as the Purchaser of the OTHER PART.

WHEREAS the Vendor is absolutely seized and possessed of the land bearing Plot No………………………. situated at ………………………………… and hereinafter referred to as the said land and more particularly described in the Schedule 1 hereunder written;

AND WHEREAS the Vendor proposes to develop the said land and for that purpose obtained the permission of the Competent Authority under section ……….. of the Urban Land (Ceiling and Regulation) Act vide his Order No ……………………. dated …………………..;

AND WHEREAS the Vendor has submitted the building plans to the ……………….. Municipal Corporation, which have been approved by the ……………….. Municipal Corporation vide letter No ………………………. dated …………. subject to certain conditions laid down in the said letter;

AND WHEREAS the Vendor has started the construction of the buildings as per the building plans approved by the ……………….. Municipal Corporation enclosed herewith at Annexure 1;

AND WHEREAS the Vendor has agreed to sell one apartment on the …………… floor in the building No…………….. being constructed and having the specifications mentioned in the Schedule 11 hereunder written at a price of Rs ………………. (Rupees …………………………… subject to the terms and conditions hereinafter appearing.

AND WHEREAS the Purchaser has inspected the documents relating to the land, the order of the Competent Authority, site plans approved by the ……………….. Municipal Corporation and is satisfied with the Vendor’s title to the said property and the site plans of the proposed buildings;

AND WHEREAS the title of the Vendor to the said property has been certified to be clear, marketable and free from encumbrances by M/s. …………………………… Solicitors and Advocates………………. and a copy of the said title certificate is hereto annexed at Annexure-II ;

AND WHEREAS the Vendor has agreed to sell and the Purchaser has agreed to purchase the Apartment No……………..on the…………. floor in the building No……………….. hereinafter referred to as the said Apartment on the following terms and conditions.

NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:

(1) The Vendor shall construct the said building on the said plot of land, more particularly described in the Schedule 1, in accordance with the plans, designs and specifications approved by the ……………….. Municipal Corporation and which have been seen and approved by the Purchaser and kept by the Vendor at the office of M/s. …………………. Architects at ……………………. for inspection. The Vendor shall be entitled to make such variations and modifications as he may consider necessary or as may be required by the ……………….. Municipal Corporation of the Government of …………….. or any local authority.

(2) The Vendor agrees to sell and the Purchaser agrees to purchase the Apartment No…………………….. on ……….. floor in the building No ……………. of Carpet Area admeasuring …………. sq. metres as delineated on the plan thereof hereto annexed and marked Annexure Ill and thereon shown surrounded by green coloured boundary line at or for a sum of Rs ……….. (Rupees ……………………. ). The Purchaser agrees that out of the said amount of Rs ………………. to be paid by him to the Vendor, a sum of Rs………… has been paid by the Purchaser to the Vendor on the execution of these presents (the payment and receipt the Vendor doth hereby admit and acknowledge) and the balance will be paid by instalment as follows:

1. Rs …………………….. on or before ……………………..

2. Rs …………………….. on or before ……………………..

3. Rs …………………….. on or before ……………………..

4. Rs …………………….. being the final balance on the delivery of

the apartment by the Vendor to the purchaser.

the amounts payable under these presents are not paid within the time stipulated, the Purchaser will be liable to pay interest at the rate of 18% per annum from the due date of payment to the date of payment.

(3) The Vendor shall deliver the possession of the apartment to the Purchaser on or before ………………. day of ……………, 2025. The vendor shall obtain the completion and occupation certificate in respect I the said apartment from the ……………….. Municipal Corporation. The purchaser shall take possession of the apartment within one week of ) a receipt of the notice of the Vendor to the Purchaser that the said apartment is ready for use and occupation and that the completion certificate and occupation certificate has been obtained from the ……………….. Municipal Corporation;

Provided that the Vendor shall be entitled to reasonable extension time for delivery of possession of the Apartment on the aforesaid ate, if the completion of the said building is delayed on account of non-availability of steel, cement, other building material, water or electric supply or on account of the war, civil commotion or act of God or any notice, order, rule, notification of the Government, ……………….. Municipal Corporation and/or other public or competent authority or on account of non-issue of building completion or occupation certificate – water or electricity connection or on account of any order of any Court affecting the construction work of the building. The Vendor will deliver the possession of the apartment to the Purchaser only if the Purchaser has paid all the amounts payable by him under this Agreement to the Vendor and if he has duly observed and performed all obligations and stipulations contained in this Agreement and on his part to be observed and performed.

(4) The Purchaser hereby declares and undertakes that he shall have no claim, save and except in respect of the said Apartment hereby agreed to be purchased by him and the Vendor shall continue to be entitled to the property in all the structures on the said land, open spaces, parking places, lobbies, staircases, lifts, terrace, etc. until all the apartments are transferred to the purchasers and the Declaration of Deeds of Apartment is executed and the condominium is formed as provided in the ………….. Apartment Ownership Act.

Book Your Legal Services with NoBroker

Nobroker makes booking legal services simple and hassle-free. From property agreement checks to rental agreements and sale deed drafting, their experts ensure everything is accurate and legally safe. They provide reliable guidance, transparency in pricing, and doorstep service, saving your time and effort. Whether buying, selling or renting a property, NoBroker’s legal team helps to avoid risk and paperwork stress, giving you complete peace of mind in every property deal. 

Frequently Asked Questions

Recommended Reading

Franking Charges Explained: Meaning and Benefits

January 31, 2025

1112458+ views

Revenue Stamp in India: Meaning, Types, Uses, Legal Value & Where to Buy in 2025

January 31, 2025

119782+ views

What are Society Transfer Charges as per the Housing Act and Rules in 2025?

January 31, 2025

73976+ views

What is the Difference Between Movable and Immovable Property?

May 1, 2025

68301+ views

Allotment Letter: Types, Format of Writing & More 2025

January 31, 2025

57659+ views

Most Viewed Articles

Franking Charges Explained: Meaning and Benefits

January 31, 2025

1112458+ views

Society Maintenance Charges : Meaning, Cost, Types and Calculation

January 31, 2025

179743+ views

BBMP E-Khata Registration process for property owners in Bangalore, Karnataka in 2025

March 19, 2025

145603+ views

Revenue Stamp in India: Meaning, Types, Uses, Legal Value & Where to Buy in 2025

January 31, 2025

119782+ views

Stamp Duty and Registration Charges in Bangalore in 2025

January 23, 2025

115661+ views