What is Sale Agreement?

Once the seller and the buyer come to an understanding to enter into a property transaction, an agreement is drafted, mentioning the terms and conditions depending upon which the transaction will take place. This document is referred to as an agreement to sell or sale agreement. It is prepared on non-judicial stamp paper. Now that you know about what is sale agreement, let me explain what does it contain:

• The complete identification of the property as well as the parties

• Final sales deed registration and possession by the buyer

• Clauses related to a penalty in case there is a delay in completing the project

• Time frame for concluding the deal and providing the possession of the bought property to the buyer

• Mode of payment of the consideration

• Agreed consideration payable by the buyer

• Details pertaining to the quality of construction, amenities and facilities available to the buyer

• Area and measurement of the property

• All other required terms and conditions agreed between and by the seller and the buyer.

Now that you know what is sale agreement and what it contains, let’s read about its importance.

It is legal proof of the seller and buyer that becomes the basis for subsequent actions by both parties. Also, in case you want to apply for a home loan, the bank will only accept your application after you sign the sale agreement.

I hope you like my answer on what is agreement to sell.

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