The Real Estate Purchase and Sale Agreement is a crucial legal instrument used in Indian property transactions to document and formalize the transfer of real estate between parties. This agreement is essential when any type of real estate property (residential, commercial, or industrial) is being bought or sold in India. It must comply with various Indian laws including the Transfer of Property Act 1882, Registration Act 1908, and where applicable, the Real Estate (Regulation and Development) Act 2016 (RERA). The document includes comprehensive details about the property, parties involved, purchase price, payment terms, warranties, and conditions for transfer. It serves as the primary evidence of the transaction terms and protects both parties' interests by clearly defining their rights, obligations, and remedies in case of default.
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1. Parties: Identifies and provides full details of the seller and purchaser, including names, addresses, and legal status
2. Background: Contextual information about the property and the parties' intention to enter into the transaction
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Property Details: Comprehensive description of the property being sold, including address, boundaries, and registration details
5. Purchase Price: Specifies the agreed purchase price and payment terms, including earnest money deposit and balance payment schedule
6. Payment Terms: Detailed breakdown of how and when payments will be made, including method of payment and account details
7. Seller's Representations and Warranties: Warranties regarding property title, encumbrances, litigation, and other material facts about the property
8. Purchaser's Representations and Warranties: Confirmations regarding purchaser's capacity to enter into the agreement and fulfill payment obligations
9. Conditions Precedent: Conditions that must be satisfied before the sale can be completed
10. Title and Transfer: Provisions regarding transfer of title, execution of sale deed, and registration requirements
11. Possession: Terms and conditions for handing over possession of the property
12. Taxes and Expenses: Allocation of responsibility for various taxes, stamp duty, registration charges, and other transaction costs
13. Default and Remedies: Consequences of default by either party and available remedies
14. Force Majeure: Provisions for unforeseen circumstances preventing performance of obligations
15. Notices: Process and addresses for serving notices under the agreement
16. Governing Law and Jurisdiction: Specifies applicable law and courts having jurisdiction over disputes
17. Dispute Resolution: Mechanism for resolving disputes, including arbitration if agreed
18. Miscellaneous: Standard boilerplate provisions including entire agreement, amendments, waiver, and severability
1. Broker/Agent Details: Include when property transaction involves real estate agents or brokers, specifying their role and commission
2. Mortgage/Financing: Include when purchase is contingent on buyer obtaining financing, specifying terms and conditions
3. Property Inspection: Include when sale is subject to satisfactory property inspection, detailing inspection rights and process
4. Existing Tenancy: Include when property is subject to existing lease or tenancy arrangements
5. Development Rights: Include when transaction involves transfer of development rights or pending approvals
6. RERA Compliance: Include for properties falling under RERA jurisdiction, specifying compliance requirements
7. Foreign Exchange Provisions: Include when either party is NRI/foreign national, ensuring FEMA compliance
8. Power of Attorney: Include when any party is acting through authorized representative
1. Schedule 1 - Property Description: Detailed description of property including exact measurements, boundaries, and floor plans
2. Schedule 2 - Title Documents: List of title documents and chain of title for the property
3. Schedule 3 - Payment Schedule: Detailed breakdown of payment installments and timelines
4. Schedule 4 - Encumbrances: List of existing encumbrances, if any, on the property
5. Schedule 5 - Permissions and Approvals: List of required governmental and regulatory approvals
6. Appendix A - Property Documents: Copies of key property documents including tax receipts, utility bills
7. Appendix B - Due Diligence Report: Summary of legal and technical due diligence findings
8. Appendix C - Site Plans and Maps: Architectural plans, location maps, and layout plans
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