The Pre Sale Agreement Property is a fundamental document in Indian real estate transactions, typically used when a property sale cannot be immediately completed but parties wish to create a legally binding commitment. This agreement is essential in both residential and commercial property transactions across India, particularly in cases involving under-construction properties or where staged payments are involved. It must comply with the Registration Act 1908, Transfer of Property Act 1882, and the Real Estate (Regulation and Development) Act 2016 (RERA), among other relevant state-specific laws. The document includes crucial details about the property, payment terms, completion timelines, and obligations of all parties involved, serving as a foundation for the eventual sale deed. It's particularly important in protecting both buyers' and sellers' interests during the interim period between initial commitment and final property transfer.
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1. Parties: Identifies and defines the seller/developer and buyer/purchaser with complete details including names, addresses, and legal status
2. Background: Outlines the context of the agreement, including the 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 Description: Detailed description of the property being sold, including location, dimensions, and unique identifiers
5. Consideration and Payment Terms: Details of the total consideration, payment schedule, and mode of payment
6. Seller's Representations and Warranties: Declarations regarding property title, encumbrances, and authority to sell
7. Buyer's Representations and Warranties: Declarations regarding capacity to purchase and compliance with legal requirements
8. Possession and Transfer Terms: Timeline and conditions for property possession and final transfer
9. Default and Remedies: Consequences of default by either party and available remedies
10. Force Majeure: Provisions for unforeseen circumstances affecting contract performance
11. Governing Law and Jurisdiction: Specifies applicable laws and courts having jurisdiction
12. Notices: Method and addresses for serving notices between parties
1. RERA Compliance: Required for projects under RERA regulations, detailing compliance with RERA requirements
2. Mortgage/Loan Provisions: Include when buyer is obtaining financing, detailing arrangements with lending institutions
3. Construction Timeline: For under-construction properties, specifying construction milestones and completion dates
4. Maintenance Terms: For properties in complexes/societies, detailing maintenance obligations and charges
5. Assignment Rights: If transfer of rights under the agreement is to be permitted
6. GST Provisions: Required for under-construction properties where GST is applicable
1. Property Details Schedule: Comprehensive technical details of property including exact measurements, boundaries, and specifications
2. Payment Schedule: Detailed breakdown of payment installments with dates and amounts
3. Construction Specifications: For under-construction properties, detailed specifications of materials and finishing
4. Title Documents: List of property ownership documents and chain of title
5. Amenities List: Details of included amenities and facilities, particularly relevant for apartment complexes
6. Approved Plans: Copies of approved construction plans and sanctions
7. Encumbrance Certificate: Recent encumbrance certificate showing any existing liens or encumbrances
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