Important clauses for the NRI in agreement to sell
When reviewing property agreements, it’s essential to carefully examine certain clauses, as they might not always be in your favor. Key clauses to watch out for in the registration of an agreement to sell, property purchase agreement, or property sale agreement include:
As Is, Where It Is Clause: You’ll receive the property in its current condition, and the seller won’t make any repairs. This is often stated explicitly in the simple sale agreement.
No Access to Property: This clause may restrict you from viewing the property until full payment is made, especially in cases of a sale agreement with NRI where physical inspection might be challenging.
Right of Way: You may need to grant access to certain parts of the property for others, e.g., allowing upstairs residents to use pathways or shared spaces, as detailed in the property sale agreement.
Lease Clause: If the property is leased, ensure the property purchase agreement specifies that the buyer and lessee’s rights remain unaffected by the sale.
Mortgage Clause: Look for clear details on who is responsible for settling any existing loans or mortgages tied to the property.
No Dues Clause: Verify that the agreement includes confirmation from the seller stating there are no outstanding dues on the property.
Dispute Resolution and Jurisdiction Clauses: The agreement should require the seller to hand over all title deeds within 15 days for scrutiny. Ensure that dispute resolution methods and jurisdiction are clearly defined in the registration of agreement to sell.
Clause Regarding Title Verification: If the buyer disapproves of the seller’s title to the property, the seller must refund any token money paid. As per the sale purchase agreement, the refund should occur within 7 days, failing which the seller will owe interest on the amount (e.g., 12% per annum).
By understanding and addressing these clauses, you can ensure a smoother transaction and better protect your interests.
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Read MoreImportant clauses for the NRI in agreement to sell
When reviewing property agreements, it’s essential to carefully examine certain clauses, as they might not always be in your favor. Key clauses to watch out for in the registration of an agreement to sell, property purchase agreement, or property sale agreement include:
As Is, Where It Is Clause:
You’ll receive the property in its current condition, and the seller won’t make any repairs. This is often stated explicitly in the simple sale agreement.
No Access to Property:
This clause may restrict you from viewing the property until full payment is made, especially in cases of a sale agreement with NRI where physical inspection might be challenging.
Right of Way:
You may need to grant access to certain parts of the property for others, e.g., allowing upstairs residents to use pathways or shared spaces, as detailed in the property sale agreement.
Lease Clause:
If the property is leased, ensure the property purchase agreement specifies that the buyer and lessee’s rights remain unaffected by the sale.
Mortgage Clause:
Look for clear details on who is responsible for settling any existing loans or mortgages tied to the property.
No Dues Clause:
Verify that the agreement includes confirmation from the seller stating there are no outstanding dues on the property.
Dispute Resolution and Jurisdiction Clauses:
The agreement should require the seller to hand over all title deeds within 15 days for scrutiny. Ensure that dispute resolution methods and jurisdiction are clearly defined in the registration of agreement to sell.
Clause Regarding Title Verification:
If the buyer disapproves of the seller’s title to the property, the seller must refund any token money paid. As per the sale purchase agreement, the refund should occur within 7 days, failing which the seller will owe interest on the amount (e.g., 12% per annum).
By understanding and addressing these clauses, you can ensure a smoother transaction and better protect your interests.
Also Read: Benefits of sale agreement