Agreement of Sale Format in Maharashtra: A Guide for Buyers and Sellers
When it comes to buying or selling a property in Maharashtra, one of the most important documents that need to be prepared is the Agreement of Sale. This document is a legally binding contract between the buyer and the seller, outlining the terms of the property transaction. In this article, we will discuss the format of the Agreement of Sale in Maharashtra and the important clauses that it should contain.
Format of Agreement of Sale
The Agreement of Sale in Maharashtra should be prepared in the following format:
1. Heading: The agreement should have a heading that states the title of the document, i.e., Agreement of Sale.
2. Parties and Property: The agreement should mention the full name, address, and occupation of both the parties, i.e., the buyer and the seller, along with the full description of the property that is being sold.
3. Consideration: The agreement should specify the total amount of consideration paid by the buyer to the seller for the property.
4. Payment Schedule: The payment schedule should be clearly outlined in the agreement, including the mode of payment and the timeline for each payment.
5. Possession: The agreement should specify the date on which the buyer will take possession of the property.
6. Title and Ownership: The agreement should mention the seller`s title and ownership of the property and confirm that the seller is the rightful owner of the property with clear and marketable title.
7. Obligations of the Seller: The agreement should mention the obligations of the seller, including the delivery of possession of the property, title deeds, and other relevant documents.
8. Obligations of the Buyer: The agreement should mention the obligations of the buyer, including payment of consideration, taking possession of the property, and payment of all the statutory dues.
9. Dispute Resolution: The agreement should specify the dispute resolution mechanism in case of any disputes between the buyer and the seller.
10. Force Majeure and Termination: The agreement should mention the clauses related to force majeure and termination of the agreement, which would come into effect in case of any unforeseen circumstances or if either of the parties fails to perform their obligations.
Important Clauses
Apart from the above-mentioned clauses, there are a few other clauses that must be included in the Agreement of Sale in Maharashtra. These include:
1. Mutation: The seller must ensure that the property is mutated in their name before the agreement is executed.
2. Encumbrances: The seller must disclose any encumbrances on the property, such as mortgages or liens, before the agreement is executed.
3. Registration: The agreement should clearly state that the buyer would get the sale deed registered in their name as soon as possible after the completion of the transaction.
4. Stamp Duty and Registration Fees: The agreement should mention the payment of stamp duty and registration fees, and who would bear the expenses.
Conclusion
Preparing an Agreement of Sale is a crucial step in any property transaction in Maharashtra. It is essential to make sure that all the necessary clauses are included in the agreement to avoid any legal hassles later. The format and clauses mentioned in this article can serve as a guide for buyers and sellers while drafting their Agreement of Sale. It is advisable to consult a legal expert to ensure that the agreement is legally valid and binding.
