A sales and purchase agreement (SPA) is a contract between buyer and seller of property that obliges a buyer to buy and a seller to sell a product or service. SPAs are found most often found in real-estate deals as a way of finalizing the interests of both parties before closing the deal. The sale agreement is usually for immovable properties like the sale agreement for freehold or leased property, sale of flat agreement, house sale, plot, resale flat etc. Both the parties create a draft agreement to sell for a property. Once they agree on the terms and conditions, agreement for sale registration is created.
Format of Agreement for Sale of Property
This Agreement to sell is made on ______________day of ___________
By _________________ (hereinafter called the seller) of the first party.
____________________ (hereinafter called the purchaser) of the second party.
The absolute owner in possession is the first party ____________________________
The agreed property is being sold by the first party with all the rights, and with consent of all heirs, to the second party who has agreed to buy this property for a total consideration of __________/-(_ ____________ only) on these terms and conditions :-
1. The first party have given assurance to the second party that the said property is not in mortgage, not attached in any bail as surety in any court, or financial institution or court. nor any agreement to sell has been made with any other party prior to this agreement.
2. The buyer has paid to the seller the total sale consideration of ____________/- (_________________________________ only) as a full and final payment against the said property/plot, for which the seller /allottee/owner hereby acknowledge the receipt in the presence of witnesses. There is no amount due as balance against the said property/land/plot.
3. The agreed property/plot is free from all sorts of burdens. The property/plot does not have any charges over it like, sale, gift, mortgage, lease, lien, attachment, demands, etc.
4. The seller shall transfer the plot/property in the name of seller or his nominees and fulfill all requirements of concerned authorities.
5. The seller shall bear all the expenses that the expenses on the deed of sale, NOC etc. of the said property/plot shall be borne by the seller of sale deed NOC etc. The expenses and the other final papers, and documents of the said property shall be borne by the said buyer.
6. The seller should not have any objection if the buyer decides to sell the property/plot to any other person.
7. In case the seller backs out from transferring the property and fulfilling the legal formalities, then the buyer has complete right on the said property to get it transferred in his name with the help of court of law under the performance of specific relief act. In that case the seller is responsible to pay the cost and consequences, damages etc.
This legal document is signed by both the parties in the presence of witnesses at ______________ on the day month and year first mentioned above, in the presence of marginal witnesses.