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Kunal Khilnani (Service)     16 January 2010

Diff B/W MOU and Agreement for sale



I have seen ppl executre MOU for selling a property.


What is the legal difference bw a MOU and Sale Deed.


I understand that MOU is liable to only 100rs stamp duty whereas sale deeds are liable to higher stamp duty.


Kindly enlighten


 9 Replies

R.R. KRISHNAA (Legal Manager)     16 January 2010

MOUs are legally not enforceable whereas agreement for sale is enforceable.  A deed is one which implies complete or partial conveyance of rights over the property or subject matter involved.  Whereas an agreement merely constitutes the terms and conditions upon which the transfer in future through a deed or any registered instrument is going to take place.

N RAMESH. (Advocate Chennai. Formerly Civil Judge. Mobile.09444261613)     17 January 2010

One can sell a property under MoU. There is no bar.

Stamp duty is payable on the value of subject matter of transaction and name of the instrument does not change it. If sale is effected under MoU, relevant stamp duty as conveyance is payable and it has to be registered as per law.

MoU is  nothing but a form of contract and is legally enforceable.


1 Like

kavitha kanive (Advocate)     20 January 2010

i agree with mr.krishnan

Dayanandan P T (Service)     02 February 2010

Yes, MOU is legally enforceable.  Stamp duty has to be borne by the Purchaser of thesubject property. 

Agreemnt for Sale doen not convey title to the property. 

Only Sale Deed / MOU with clauses of conveyance of the rights will be construed as pucca sale transaction.

paramasivam.R. (Legal Consultant )     09 March 2010


Let me know the legal enforcibilty/validity/ B/w MoU and ordinary agreement.

can we enfoce the MOU duly engarved and signed by parties, before court of law, in the absebce of agreement thereon.

Please arrange to answer  me

Dayanandan P T (Service)     10 March 2010

Let me know the legal enforcibilty/validity/ B/w MoU and ordinary agreement.

can we enfoce the MOU duly engarved and signed by parties, before court of law, in the absebce of agreement thereon.


Actually, the MOU and agrement both are valid in law. Legal enforceiability is only with reference to the conveyance of the title of the Property from seller to the Buyer.

In the case of Agreemnt for Sale, it is only an agreement that seller will sell and Buyer will buy at such an price etc. but actual conveyance/transfer of title takes place only on execution of Deed of Conveyance by way of Sale Deed registered before the sub-registrar.

In case of the MOU containing the clause of conveyance /transfer of title from one person to another, it has to be registered before the sub-registrar of concern jurisdiction and the stamp duty paid on it.

Hope it clarifies.


Rajadiraja (Advocate/consultant )     13 July 2010

Please let me know if X & Y can enter into a MOU for using a piece of land belonging to X as passage/pathway for both X & Y commonly since Y also has a land adjacent to that of Y and does not have a pathway.   Or is it necessary to enter into a license agreement.  Someone advised me to enter into an easement agreement.  I am confused, hence require correct advise please.    Should there be a consideration by way of Rent or can it be free of cost if  agreed to between the parties.  Would be glad if anybody provides me  a draft aswell.   Thanks to all in advance.

mandar (software engineer)     01 December 2011


I need some legal advice and hence I ma posting my question here. Recently I started a property deal in mumbai for 1 BHK apartment. The seller and I came to an agreement on price of property and we went to the lawyer and did an Agreement to Sell(MOU). The MOU details about all black and white money payments that both parties has agreed upon and also has receipt of token payment I have made. This agreement was signed by both parties. After MOU I made one more part payment to the seller as a part of agreement.In return I asked the seller to submit his original property deed papers. He submitted his papers which are with the lawyer now. Meanwhile I have been working on getting bank loan for this property. Now suddenly yesterday the seller told me that he doesnt want to sell his property since he has some personal problems and wants to call off the deal. My lawyer has already warned him that he cannot call of the deal at this time as that will lead to breaking of agreement and their can be strict legal action against him. I just wanted to know from you guys if it is possible for seller to cancel the agreement at this stage since property registration is not yet done and if I decide can I take legal action against him using MOU since he is breaking agreement by not completing sell. Please let me know.



harish (Advocate)     25 April 2012

you can file a civil suit for Specific performance of the Mou having paid part consideration amount and in lieu of Agreement to be executed, to enforece your rights.

Civil Suit required to be  filed underArticle 54 and 55 of the limitation Act 1963 by paying appropriate court fees

1.      under the article 54 & 55 of The Limitation Act 1963, article 54 of The Limitation Act relates to suit for specific performance of contract and article 55 of The Limitation Act relates to suit for compensation for breach of any agreement or contract express or implied and in both the instance the time limit for instituting suit is within three years.

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