Owning a home or place is every man’s dream. But buying a property takes time and effort, deciding a budget; locality is the primary steps in purchasing a property. The actual sale happens only when the property is legally transferred and registered in your name. Sale agreement and sale deed are two primary legal documents, which play a vital role in the purchase of the property.
The sale agreement is a future promise stating the condition under which transfer will happen. The sale and purchase agreement is not a standard document and can differ from person to person. Hence it is essential to read the clauses of the sale agreement before purchasing a property.
Important clauses in the sale agreement
The requirements included in a sale agreement depend on the kind of sale.
- Resale of the Property
- Advance Money
Every seller is cautious as to who he sells and also determined to ensure the sale goes through. Most sellers do include a clause in the agreement stating what happens if the buyer backs off from the deal. The term can indicate that the buyer loses his token advance money in case it fails to fulfill his part. Hence as a buyer, before you commit yourself to read the clause, check the condition, and ensure the token amount received is mentioned clearly.
As a buyer never over commit yourself, ensure ample time is available for you o make arrangements before final payment. Also as a buyer, you are responsible for protecting your right, hence make sure the clause states what happens if the seller backs of from the sale and also under what certain conditions you can exit from the sale and purchase agreement without losing the advance amount paid.
2. Property access
It is a genuine concern on the party of the buyer to inspect the property before buying. Sometimes he may bring an expert along for repeated inspection. Most of the seller would be fine with a single investigation or more in case of vacant site or property.Suppose the property in the sale has been occupied by the third party then the seller may refuse to allow repeated inspection and access to the property until full and final payment. The seller can include a clause to this effect, hence as a buyer to avoid inconvenience to the third party occupying the property. Therefore ensure the agreement states a suitable time for you to visit the property in question for inspection.
3. The condition of the property
The property being sold may not always be in pristine condition. Old and wrong shaped properties are sold by the seller under as is, where the basis is without any repairs done. Investing in such estate is always a risk and should be avoided unless you are ready for the challenge. Also, in such properties, the buyer is allowed to inspect it, but once the sale is inked, the seller is not responsible for any damages discovered after the purchase.
So, while agreeing to ensure to include the damages discovered at the time of inspection before making the purchase. In case the seller agrees to repair them, it is better to add a seller’s obligation into the agreement. Also, at the time of inspection, see if any third party has any rights, check for lease agreement and mortgage agreement on the property.
4. Easement and Encumbrance
The next most crucial clause to check is easement and encumbrance rights on the property. For any encumbrance, check the sub-registry for safe purchase. And as for as easement is concerned, which is also right to way avoid such property. Easement allows other people right of the way apart from the buyer, which can prove to be a nuisance in the future.
5. Mortgage and leases
Buying any property that has a mortgage or rent on it can be a little time consuming and tricky. Ensure the mortgage agreement is read and paid in full before transfer. And in lease properties, read lease agreement and see if the tenant is given the notice and when would they vacate.
B. New projects
1. Area and alteration
The price of the property depends on the field and specifications. Builders with a view to monetary gain can include a clause that allows them to alter your house post-sale agreement. Hence consider the municipal agreement plan copy and check to see if the specifications match the deal. As builders are restricted to change approval.
2. Payment and additional charges
The value of the property will not be the same, as shown in the ads. Make a list of all services offered and fees to be paid, including registration and taxes. Ask the seller to state in the agreement the person, mode, time, and way for making each payment, including any penalties in case of either party failure.
3. Delivery and transfer
The agreement should include the correct date of delivery and also a penalty for delay in transmission of possession. Also, wait for the formation of society before resale or leasing the property.
Conclusion: as stated, there is no fixed format for sale agreement. The best way to protect your rights is by exercising caution and reading the contract carefully before signing. Make sure the clauses are fair and genuine before agreeing to it.
Jessica, a writer by calling and an academic has created scintillating and remarkable content for dozens of websites in the purview of the Business Sector. She has a fair understanding of the inner workings of several business establishments, making her the foremost expert in this field.