Contract To Sell A House Template for India

The Contract to Sell a House is a crucial legal document used in Indian property transactions to formalize the agreement between a property seller and buyer before the execution of the final sale deed. This document is essential in the Indian real estate market, where property transactions must comply with specific legal requirements under the Transfer of Property Act 1882, Registration Act 1908, and various state-specific regulations. It serves as a preliminary agreement that outlines all essential terms of the sale, including property details, consideration, payment schedule, and conditions precedent to the sale. The contract protects both parties' interests by clearly defining their rights and obligations, and typically precedes the execution of the final sale deed. It's particularly important in India's legal framework as it creates a legally binding obligation for the eventual transfer of the property, subject to the fulfillment of specified conditions.

1. Parties: Identifies and provides full details of the seller and purchaser including names, addresses, and legal capacity

2. Background: Establishes the context of the sale, confirming the seller's ownership and intention to sell, and buyer's intention to purchase

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Property Details: Comprehensive description of the property including address, boundaries, registration details, and built-up area

5. Purchase Price: States the agreed purchase price and payment structure including earnest money and balance payment terms

6. Payment Terms: Details the schedule of payments, mode of payment, and consequences of default

7. Seller's Representations and Warranties: Seller's declarations regarding property title, encumbrances, legal compliance, and pending disputes

8. Buyer's Representations and Warranties: Buyer's declarations regarding financial capacity and compliance with applicable laws

9. Conditions Precedent: Conditions that must be satisfied before completion of the sale

10. Completion Obligations: Details of actions required by both parties to complete the transaction

11. Registration and Transfer: Provisions regarding execution and registration of the sale deed

12. Costs and Expenses: Allocation of transaction costs including stamp duty, registration fees, and professional fees

13. Governing Law and Jurisdiction: Specifies applicable law and courts having jurisdiction over disputes

14. Notices: Procedure for sending formal communications between parties