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agreement for sale

(Querist) 22 August 2009 This query is : Resolved 
i wnts to prepare an agreement for sale where in the purchaser wants to avail home loan facility from bank. the purchaser therefore put the proposal that he is making a part payment (an innitial amount) to registered the agreement for sale and after registration of the said agreement he will submit the said agreement to his banker and within 7 days his loan will release by the banker and the payorder will issue directly in the name of seller.

the seller wants to mentioned this fact in his agreement if this offer is proper. whether is it proper to accept this offer of purchaser? if yes then can i put the said term in the agreement as requir by the seller? if you have any draft of the said clause then plz. forward me. it is very urgent. thanks in advance.
A V Vishal (Expert) 22 August 2009
In case the bank refuses to sanction the loan then what? Therefore it is advisable to enter into an agreement of sale rather execute a sale deed. However, you still want to execute only a sale deed then draft a conditional sale deed. But I am against such deeds personally.
A V Vishal (Expert) 22 August 2009
Enclosing a Sample deed of conveyance, modify suitably to your requirement making appropriate Changes in the terms of agreement and sale. Present the facts under which the deed is executed.

DEED OF CONVEYANCE
(WHERE THE CONSIDERATION IS PAYABLE BY INSTALMENTS)

THIS DEED OF CONVEYANCE is made at ... this... day of.,.. between Mr. 'A' of... (hereinafter referred to as the 'Vendor') of the One Part, and Mr. 'B' of ... (hereinafter referred to as 'the Purchaser'). of the Other Part;

WHEREAS the Vendor is absolutely seized and possessed of or otherwise well and sufficiently entitled to the land and premises situate at ... and more particularly described in the Schedule hereunder written.

AND WHEREAS the Vendor has agreed to sell the said property to the Purchaser at the price of Rs... and has received from the Purchaser a sum of Rs... as earnest money on the execution of the agreement for sale.

AND WHEREAS the balance is agreed to be paid by the Purchaser by instalments as hereinafter provided.

AND WHEREAS the Purchaser has requested the Vendor to execute these presents which he has agreed to do.

AND WHEREAS for the purposes of stamp duty the consideration is valued at ... ... market value is fixed at ........

NOW THIS DEED WITNESSETH that pursuant to the said agreement and in consideration of the sum of Rs.... paid as earnest money as aforesaid and of Rs.... paid on the execution of these presents ( receipt whereof the vendor hereby admits) and the balance of Rs.... agreed to be paid by the Purchaser to the Vendor by instalments as hereinafter provided. making together the said sum of Rs.... agreed to be, paid by the Purchaser to the Vendor, He, the Vendor doth hereby convey and transfer by way of sale unto the Purchaser all that piece of land with the building and structures standing thereon situate at ... in the Registration Sub District of ... and more particularly described in the Schedule hereunder written and delineated on the Plan thereof hereto annexed by red coloured boundary line TOGETHER WITH ALL the things permanently attached thereto or standing thereon and all the privileges, casements, profits, rights and appurtenances whatsoever to the said land and other premises or any part thereof belonging or anywise appertaining thereto and ALL THE estate, right, title, Interest, use, possession, benefit. claim and demand whatsoever at law or otherwise of the Vendor to the said piece of land and other the premises hereby conveyed and every part thereof TO HOLD the same unto and to the use and benefit of the Purchaser absolutely and forever, subject to the payment of all rents, rates, taxes, assessments. dues and du ties now chargeable and payable and that may become chargeable and payable from time to time hereafter in respect of the same to the Government or the Municipal Corporation of... or any other public body or local authority in respect thereof. - - - -

AND the Vendor doth hereby covenant with the Purchaser that,

(1) The Vendor now has in himself good right and full power to convey and transfer by way of sale the said piece of land, and other the premises hereby conveyed or intended so to be unto and to the use of the Purchaser in the manner aforesaid.
(2) The Purchaser may from time to time and at all times hereafter peaceably and quietly enter upon. occupy, or possess and enjoy the said land, and premises hereby conveyed with their appurtenances, and receive the rents, issues and profits thereof and every part thereof for his own use and benefit without any suit. lawful eviction or interruption, claim and demand whatsoever from or by him the Vendor or his heirs, or any of them or by any person or persons claiming or to claim, from, under or in trust for him or any of them.,
(3) The Purchaser shall hold the said land and premises free and clear and freely and clearly and absolutely exonerated, and forever released and discharged or otherwise by the Vendor and well and suffici
PALNITKAR V.V. (Expert) 22 August 2009
Mr.Vishal is absolutely right. It is better to execute agreement to sale and not sale deed. Vishal should be thanked for giving the draft as well.
ESTHERPRIYA (Expert) 22 August 2009
The author is right as he intends to prepare the sale agreement only and it is legally valid. Nowadays this kind of practice is prevalent in land purchase and sales because of loans sanctioned by the bank. Mentioning each and every fact is reasonable and registration of the agreement is permissible. You can go forward by using the draft sale agreement. Ensure all points mainly time is the essence of contract must be mentioned in the agreement.
SANJAY DIXIT (Expert) 22 August 2009
I agree with the opinions made by Padmapriya.
It is going on day by day practice.
VIKAS RAJ CHHAJER (Expert) 25 August 2009
Please i don't want to advice as there is strike in our district so please pray for us that our high court may not broke and we may live unitedly.

For your matter i will respond but after few days.

Vikas Raj Chhajer
Manish Singh (Expert) 25 August 2009
Dear Mr. Ad,
the clause you mentioned above is completely appropiate for an agreement to sell and you need not worry as this is just going to be an agreement to sell and the sale deed may be executed after the seller gets the full consideration amount from the bank.
Sachin Bhatia (Expert) 07 October 2009
Very well drafted by Mr. Vishal


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