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abhijit majumder (practicing company secretary)     21 September 2023

Flat/apartment sale agreement _clause


The Fellow experts

In a Flat/apartment selling agreement instead of giving sale price in Rs. xxxxxx     can I inserted following clause:

'The sale price will be fixed at 20% over the valuation as determined by the valuation authority( here Registrar of Assurance)'.





 6 Replies

SAM (LEGAL)     21 September 2023

The sale price should be clearly mentioned in the sale agreement. There should not be any ambiguity and the sale price should clearly specify the amount and not in percentage. 

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T. Kalaiselvan, Advocate (Advocate)     21 September 2023

Please note that the sale consideration amount is the price at which the deal is closed and transferred.

This amount is mutually agreed upon by both parties before being mentioned in the sale deed.

Without specifically mentioning about the sale considration amount  in the sale deed, this sale deed would be construed as defective hence invalid

Udita Gupta (Lawyer)     21 September 2023

Any agreement needs to have a valid consideration for its to be a legally binding contract and hence an agreement without a clear sale price would be invalid.

kavksatyanarayana (subregistrar/supdt.(retired))     21 September 2023

Yes.  I agree with the above experts.

Dr. J C Vashista (Advocate )     22 September 2023

Well explained and advised by experts, I endorse.

abhijit majumder (practicing company secretary)     22 September 2023

My sincere thanks to all the respected senior legal exparts, for clarifying the  defect in the sale price clause.

Actually the valuation of a flat in West Bengal  only be made after submitting the sale agreement to the valuer.

Without any prior idea/ knowledge of Market  value of the flat it is become very difficult to fix a suitable  price of the flat.

That is why I think about that clause. But  unfortunately it  is a incomplete clause which you correctly point out.

Thanks again


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