Sale Agreement

Here’s All You Need to Know about the Sale Agreement

Buying a home is a cherished dream. The Internet has made it easier to shortlist and buy homes, but the documentation and paperwork still haunt denizens. So, how much paperwork is involved in the entire process? Well, a lot!

In one of our previous posts, we spoke about the13 most essential documents that you cannot afford to miss while buying a home. In this post, let’s get down to the Sale Agreement.

In simple words, the Sale Agreement (also known as Agreement to Sell) is a document in which the seller (read real estate developer in this case) agrees to sell the described property to the buyer.

This document contains all the terms and conditions agreed upon by both the parties involved in the transaction. For the property to have a clear title, the Sale Agreement must be registered at the sub-registrar’s office once all the transactions are over.

Some of the common points included in the Sale Agreement are:

  • Contact details of the seller and the buyer
  • Price agreed by both the parties
  • Payment disbursal details
  • Timeframe for the payment
  • Details for the payment of stamp duty

If you want to know more about the clauses to check in the Sale Agreement, you can read it here.

Some of our readers wrote in with these questions. Our real estate expert is here to answer those.

Is there a different Sale Agreement for different property types?

Yes. The Sale Agreement for each property type is different. The finer points that need to be noted in each of the property types are:


In addition to the above-mentioned common points, one must look for the following details in the Sale Agreement while buying an apartment:

  • Details of the total undivided share of land
  • Completion period
  • Delayed payment charges and rewards for timely payments
  • Cancellation clause that must clearly indicate the cancellation charges and other related norms

Plots and layouts

For plots and layouts, you must look out for details like:

  • The total extent of the land being developed.
  • Details of the common areas like roads, pavements, and other facilities that are a part of the overall project.
  • Cancellation clause, which should state the time limit for the refund of payment in the event of cancellation of the deal.
  • In Bangalore, the registration of the plot is allowed by the Bruhat Bengaluru Mahanagara Palike only upon the release of the Khata Certificate. This is to ensure that all the requisite work is completed by the developer before the registration.
  • Along with the Sale Agreement, you will also get a Construction Agreement or the Development Agreement from the developer for a plotted development.


Like with plots, you will get a Construction Agreement or the Development Agreement from the developer when you buy a villa.

What should you check in the Sale Agreement while buying a resale property?

While buying a resale property, there can be two scenarios:

The property is already registered.
The registration has not been completed.

Case I: For registered property

You need to verify the registration done by the actual buyer. Check if any loan is outstanding against the property. This can be verified with the Encumbrance Certificate (EC).

The next step is to verify all the original documents. If the original documents cannot be verified, a certified copy of the Sale Deed (as a proof of ownership) must be obtained from the registrar’s office.

Make sure to do the physical inspection of the property to ensure all points related to any structural issues/defects are addressed in the agreement.

Documents to be collected

  • Sale Agreement between the developer and the first owner of the property
  • Sale Deed
  • If the ownership is changed in between, do take the supporting documents for the same
  • Khata Certificate and Extract (specific to Bangalore)
  • All the tax receipts
  • Copy of the Title Deed, as provided by the builder to the first registered owner of the property, which should mandatorily include the Occupancy Certificate

Case II: Unregistered property

You need to obtain confirmation of the Sale Agreement and updated statement of account from the developer to ensure that all the dues are clear. In case, there are dues that need to be paid after the transfer of the property to the new buyer, ensure there is clear communication with all the details.

Both the seller and buyer should enter into a memorandum of understanding based on which the builder will prepare an Assignment Deed. Once this is completed, a fresh statement of account should be taken from the builder. This is to verify that the new buyer’s name is captured in the builder’s system.

Documents to be collected

  • The Sale and Construction Agreement between the builder and the buyer
  • Assignment Deed that is duly signed by the seller, buyer, and the builder confirming acceptance of the transfer
  • Statement of account confirming that no dues are pending
  • If there are dues pending, clear details of the same
  • If the property is registered directly from the builder, the original Sale Deed should also be taken

What is ‘as is, where is’ basis?

There are times when the property in question has several structural defects and the seller is unwilling to repair those. This qualifies for ‘as in, where is’ norm. In simple words, when a buyer agrees to buy such a property, he/she is responsible for fixing all the damages and defects.

What if the Sale Agreement is lost?

In case of a resale property, it is relatively easier to get a new agreement signed with reference to the initial agreement.

In case of the primary sale, you can do the following:

Builder agreements are always made in two copies, one for the builder and one for the buyer. Thus, you can get a certified true copy from the builder. In addition, there are certain legal proceedings that should be followed:

  • Lodge an FIR for the loss of the Sale Agreement
  • Make an affidavit (self-declaration) for the same and get it notarised
  • Release a newspaper advertisement for the loss – one in an English Daily and one in a vernacular newspaper
  • Post this, proceed with the Certified True Copy and all other documents in original

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