Agreement to Sell - Its Importance - Important Terms and Conditions Explained in Hindi

Agreement to Sell - Its Importance - Important Terms & Conditions Explained in Hindi

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Agreement to Sell - Explained with Important Terms and Conditions

An Agreement to sell is by nature a memorandum of agreement wherein the terms and condition of a prospective contract of sale is enumerated along with the proposed consideration and details of payment. It is a document of major importance in a sale of immovable property. It is the document on which the Deed of Sale is based on. It enables the process of sale to happen smoothly by describing the steps in detail. This helps in creating a better understanding between the parties and their individual roles in the sale.

An Agreement to Sell includes matters like:
1. Proposal to purchase and agreement to sell
2. Detailed description of the property
3. Proviso requirement of good marketable titles and no encumbrances
4. Payment details including earnest money
5. Delivery of original documents on payment
6. Drafting of sale deed and registration of the same if titles found good
7. Method of delivery of property
8. Refund of earnest money in case of improper titles
9. Remedies for non-completion of sale on part of vendor including specific performance and bearing of expense of proceedings
10. Forfeiture of earnest money, if purchaser fails to complete the sale
11. Action if the property is affected by notice from government authorities.
12. Production of tax related certificates
13. Schedule description of the property
14. Memo of consideration for earnest money received
15. All other matters incidental to the proposed Sale

An Agreement to Sell thus shows the willingness of the parties to sell/buy a property in question and culminates in creation of the actual sale deed. It cannot be called a Sale Deed because it does not create any rights on the property for the buyer.

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