Pre Sale Agreement Template for India

The Pre Sale Agreement is a fundamental document in Indian real estate transactions, particularly in the context of under-construction properties. It serves as a preliminary agreement between the developer/seller and the potential buyer, establishing the intention to sell and purchase a specified property. This document gained additional significance after the implementation of RERA in 2016, which made it mandatory for developers to register such agreements and follow standardized terms. The agreement typically precedes the final sale deed and includes essential details such as property specifications, payment schedules, completion timelines, and possession dates. It's particularly crucial in protecting buyers' interests during the construction phase while also providing developers with commitment from buyers. The Pre Sale Agreement must comply with various Indian laws including RERA, the Transfer of Property Act, and the Indian Contract Act, making it a legally robust document that forms the basis of the property transaction.

1. Parties: Identifies and provides full details of the seller/developer and buyer/purchaser including names, addresses, and registration details if applicable

2. Background: Provides context about the property development, seller's ownership/development rights, and buyer's interest in purchasing

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

4. Property Details: Detailed description of the property being sold including location, dimensions, and unique identification details

5. Consideration and Payment Terms: Specifies the total consideration, payment schedule, and mode of payments

6. Construction Timeline: Details the construction stages, completion dates, and possession timeline as per RERA requirements

7. Seller's Representations and Warranties: Lists all warranties and representations made by the seller regarding title, approvals, and property condition

8. Buyer's Covenants: Outlines the buyer's obligations including payment commitments and compliance requirements

9. Default and Remedies: Specifies events of default and corresponding remedies available to both parties

10. Force Majeure: Defines circumstances beyond parties' control and their impact on obligations

11. Governing Law and Jurisdiction: Specifies that Indian law governs the agreement and establishes jurisdiction for dispute resolution

12. Notices: Details how formal communications between parties should be made and delivered

13. Execution: Space for signatures and witness details as required by Indian law