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In this article, I will walk you through how to draft an agreement for sale that will set the groundwork for executing the sale deed. You will also learn about the legal provisions and other core concepts about an agreement for sale that will help you draft. If you are a student or someone who has never drafted an agreement for sale before, then you will find your answers in this article. 

Introduction

It was one of those mornings, when you are already running late to reach the court and trying not to miss your matter. That is exactly when one of my neighbour showed up and asked me “can you please take a quick look at this agreement? We are selling our flat”. 

Ah, yes, this is one of the perks of being a lawyer. You become a designated legal helpline for all legal queries of your friends, family, and people you occasionally meet.

At that moment I was getting late so I asked her to leave the papers at home and I would check it later. She handed over a bundle of documents to my mother. 

When I got back home, my mother immediately reminded me to check her papers, as my neighbour had twice come to see if I was home. 

I freshened up and sat down with the papers. One glance and I knew this was not drafted by a lawyer. It was a classic case of Ctrl+C, Ctrl+V  from the templates available on the internet. There was no flow, clarity, or structure. I scribbled down the pointers to tell my neighbour.

That is when she came and asked me if the draft was proper and if she could proceed to sign it. 

I asked her who drafted this. She casually mentioned that some purchaser’s agent had drafted it. Well, that explained everything.  

I pointed out the missing clauses and vague terms and asked her to correct them before signing. She was astonished when I pointed out the flaws, thinking the draft was perfect.

After she left, I sat there thinking to myself that this is precisely the problem. People these days try to save a little money and avoid lawyers. They think, why pay a lawyer when they can easily download ready formats?  But they do not realise that a tiny loophole in the agreement can land them in court later.  

This reminded me why understanding the why and how of drafting is so important. So,before I teach you how to draft an agreement, let us clear some concepts first. Because knowing what to include and why it is included will make all the difference. 

Let us begin.

What is an agreement for sale?

It is a formal contract between the buyer and the seller that records the terms and conditions under which a property shall be sold in the future, subject to compliance with the conditions recorded in the contract.

In simple terms, it shows the parties’ willingness to buy or sell the property in the future upon satisfaction of certain terms and conditions. However, it does not involve an immediate transfer of ownership, and hence, the buyer has no right, title, or interest in the property in question.

So, basically, it is not the sale itself, it is the commitment to complete the sale as per the mutually agreed-upon terms and conditions.

You should also know that it is a legally enforceable contract that will safeguard the interest of both parties, but there is no transfer of right, title, and interest as it is in the sale deed. 

Now, let us see the difference between an agreement for sale and a sale deed.

Difference between agreement for sale and sale deed

Many often get confused with both and think they are the same, but they do not mean the same and cannot be used interchangeably. So, let us read below the difference to understand.

Sr. No.	Features	Agreement for sale	Sale deed
	Nature	Under this there is no transfer of right, title and interest of the property. It is a mere promise to transfer the property in the future.	Under this there is an immediate transfer of right, title and interest of the property.
	Rights	It creates contractual rights as there is no transfer of ownership.	It creates right in the property as there is a transfer of ownership upon the execution and registration.
	Type	It is an executory contract as the obligations outlined are to be performed in the future.	It is an executed contract as it signifies that all terms and conditions have been fulfilled leading to immediate transfer of ownership.

What are the relevant statutes governing an agreement for sale?

When drafting an agreement for sale, it is also crucial to understand the relevant statutes that govern such transactions. Here is an overview of the primary statutes.

1. Transfer of Property Act, 1882

The act governs the transfer of property in India. Section 54 defines a ‘sale’ and distinguishes it from ‘contract for sale’, which does not create any interest or charge on the property.
“To avoid any confusion, let me tell you that, legally, agreement for sale is generally understood to be synonymous with a contract for sale.”

2. Indian Contract Act, 1872

This act lays down the general principles governing contracts. You must be aware that for an agreement to be legally enforceable, it must fulfill certain conditions:​

• There must be an offer by one party and acceptance by the other.​
  
• The agreement is valid when there is a consideration.​
  
• Both parties to the contract shall be competent, meaning that the parties are of legal age, of sound mind, and not disqualified from contracting by any law.​
  
• The agreement should be made with the free consent of both parties. Free consent means consent should be obtained without coercion, undue influence, fraud, misrepresentation, or mistake.​
  
• The object of the agreement must be lawful.
  

These are the essential elements of a valid and enforceable contract.  ​

3. Registration Act, 1908

This Act governs the documents that require compulsory registration. Under section 17(1A) of the Registration Act, 1908, agreements for sale must be registered to claim protection under section 53A of the Transfer of Property Act, which safeguards the possession of the buyer if they have paid part consideration amount and also taken possession. However, it does not confer title to the property.

4. Specific Relief Act, 1963

This Act provides remedies for parties aggrieved by breach of contracts, including agreements for sale. These remedies include filing suit for specific performance and damages, where the court directs the party in breach to fulfill its obligations or orders the defaulting party to pay damages as per the contract. 

5. Indian Stamp Act, 1899, and State Stamp Acts

It mentions the documents that are required to be stamped. However, the amount of stamp duty differs from state to state. 

It also confirms the importance of paying the stamp duty in order to admit the same in evidence in any legal proceedings, otherwise the Court can even order to impounding of the agreement until the stamp duty is paid.

Understanding these statutes is vital to ensure that an agreement for sale is legally sound and enforceable, safeguarding all parties’ interests.

What is the checklist for drafting an agreement for sale?

Before we start with drafting, you should know what forms a part of an agreement for sale. Let us see below:

1. Party details – You need to put the name, age, address and PAN number or Aadhaar number of both the parties.
2.  Recitals – Recitals are the details of the ownership history, intent to sell/buy
3. Description of the property – You need to put the details of the property like flat number, location, area, district etc. that is being sold or purchased.
4. Terms of payment—Most importantly, you need to show the payment schedule and the manner in which the payment will be made. If you are taking a loan, then you can mention that.
5. Duties of buyer and seller – You can set out the duties and responsibilities of the buyer and seller for instance the duty of the seller that all duties of the society are cleared and there is nothing pending and if it is pending, then the same shall be cleared. 
6. Remedies in case of breach – You need to mention the remedies available in case there is a breach of the agreement for instance termination, specific performance and damages. 
7. Alternate dispute resolution mechanism – You can also mention that in case there is any dispute, then the matter shall be referred for arbitration.
8. Stamp duty and registration – Your agreement shall consist of the clause as to who would be paying the charges.
9. Schedule – Your schedule consists of description of the property alongwith the CTS number, village name, area etc. 
10. Receipt clause – Lastly you agreement shall consist of the receipt clause that acts as an acknowledgment by one party of having received part payment towards the total consideration as agreed in the agreement.

How to draft an agreement for sale? 

Now, coming to the drafting part. Let us see how to draft an agreement for sale. 

The explanation is given in red italics for you to understand the purpose of each clause so that the next time you draft, you know the clauses that you need to include.

To draft this agreement for sale, let us work with an example.

Draft an agreement for sale for Rohan Bohra, who agreed to sell his Flat No.1201 in Windsor Castle, Andheri, to Sheena Sharma and Karan Sharma for an amount of Rs. 91,50,000/-. Rohan Bohra had acquired the flat via a registered sale agreement in 2017 and later executed a rectification deed in 2022 to correct clerical errors, including clarifying that no car parking was included. The building’s co-operative society was formed in 2020, and Rohan Bohra is a bona fide member. The society has not issued any share certificates to Rohan Bohra. The payment structure is as follows Rs.8,23,500/- at the time of execution of agreement for sale, Rs.91,500/- as TDS within 30 days of execution of agreement for sale, Rs.81,80,000/- through a home loan to be disbursed within 40 days from date of execution of agreement for sale and the balance Rs.55,000/- alongwith any shortfall in the sanctioned loan to be paid within 40 days window.

Explanation: This opening sentence describes the nature of the document that is being made and also mentions when and where the agreement is being made and executed between the parties.

This AGREEMENT FOR SALE is made and executed at Mumbai on this 1st day of April, Christian Year Two Thousand and Twenty Five, 

Explanation: This part introduces the parties involved on both sides, i.e., the person agreeing to sell the property, referred to as the seller or sellers, and the buyer, referred to as the purchaser or purchasers, who are agreeing to buy the property. You also mention their age, addresses, and PAN numbers, including their legal successors.

                                                         BETWEEN 

Rohan Bohra, aged about 50 years, PAN no.___________, presently residing at 1201, Windsor Castle, Sahar Road, Andheri (East), Mumbai – 400099  hereinafter referred to as “Seller” (which expression shall unless it be repugnant to the context or meaning thereof shall mean and include his heirs, executors, administrators) of the ONE PART; 

                                                              AND 

(i) Sheena Sharma, aged about 39 years, PAN no.____________, (ii) Karan Sharma, aged about 40 years, PAN card no._______________ both presently residing at 205, Orbit heights, Sector 7, Kharghar, Navi Mumbai -410210; hereinafter collectively referred to as “Purchasers” (which expression shall unless it be repugnant to the context or meaning thereof be deemed to mean and include their heirs, executors, administrators and assigns) of the OTHER PART. 

Explanation: This part is mentioned for the ease of referring to the Seller and Purchasers in the agreement.

The Seller and the Purchasers shall, hereinafter, be collectively referred to as the 

“Parties” and individually referred to as the “Party”. 

Explanation: You then start writing what is known as recitals. They start with “Whereas” and provide the history of the title in respect of the property that forms the subject matter of the agreement by referencing the past title documents and showing how the seller became the owner in respect of the property. You also mention the intention of the parties to execute this agreement and the reasons leading to the execution of the agreement.

Let us see what it looks like

Explanation: You start by explaining how the Seller acquired rights to the flat in the first place by giving reference to the prior registered agreement

WHEREAS by an agreement for sale dated 22nd February 2017 registered before the Sub Registrar of Assurances, Andheri, under registration no. BRL-9/1146/2017 entered into between one M/s.Guru Developers therein referred to as the Promoters of the One part and the Seller herein therein referred to as the Flat Purchaser of the Other Part, the Seller herein acquired absolute right, title and interest in Flat No.1201 admeasuring about 452sq.ft.(carpet area) on the 12th floor in building known as “Windsor Castle” being, lying and situate on a plot of land bearing CTS No.507 in Village -Andheri, Mumbai-400099 (hereinafter referred to as “the Flat”) for the price and on such terms and conditions which is more particularly set out therein(for the sake of brevity hereinafter referred to as the “Principal Agreement”) 

Explanation: Since the original title document contained some clerical mistakes, this section explains that a rectification deed was signed to correct details in the original sale agreement.

AND WHEREAS a registered deed of rectification cum correction dated 3rd February 2022, registered under Document No.BRL-8-1863-2022 before the Sub-Registrar of Assurances at Borivali were entered into between the said M/s.Guru Developers therein referred to as the Vendors of the One part and the Seller herein, therein referred to as the Flat Purchaser of the Other Part to cancel clause no.6 and clause no.7 of the Principal Agreement and to correct the schedule of the property in Index II of the Principal Agreement from “One Car Parking” to “No Car Parking” and also replace the schedule of the property in Index II of the Principal Agreement with the schedule of the property mentioned in the registered deed of rectification cum correction dated 3rd February 2022. 

Explanation: Here, it is shown how the society was formed by the residents of the building and that the Seller is a bonafide member of that society. If a share certificate was issued, you should even mention that.In our case, the share certificate was not issued until date by the society, so there is no mention of the same.

AND WHEREAS various flat purchasers of the building known as “Windsor Castle” incorporated and registered a Society in the name and style of “Windsor Castle Co-Operative Housing Society Ltd.” under the provisions of the Maharashtra Cooperative Societies Act,1960, under registration No. MUM/WP/HSG/PC/15971/2020-21/2020 dated 28th April 2020(hereinafter referred to as ‘the said society’). 

AND WHEREAS the Seller herein applied for membership to the said society and the Society has admitted the Seller as a bona fide member of the said society in respect of the flat. 

Explanation: You establish and confirm that the Seller has the authority and ownership to sell the flat

AND WHEREAS in the premises aforesaid, the Seller herein is absolutely seized and possessed of and well and sufficiently entitled to sell, transfer, convey, and assign all his right, title, and interest in the flat, which is more particularly described in the Schedule written hereunder. 

Explanation: This part shows that the Purchasers approached the Seller, inspected the flat and the documents, and are satisfied with everything.

AND WHEREAS the Purchaser being desirous of purchasing a Flat for residential use approached the Seller and requested the Seller to sell, transfer, convey, and assign all his right, title, and interest in the flat to the Purchasers, and the Seller has acceded to the request of the Purchasers. 

AND WHEREAS the Purchasers have inspected the Flat and have satisfied themselves with respect to the flat vis-à-vis the marketability and title of the flat. 

Explanation: You show the confirmation that both parties have agreed to sell and purchase the flat on certain conditions that are recorded in the agreement 

AND WHEREAS the Seller has agreed to sell and the Purchasers have agreed to purchase the flat on such terms and conditions as mutually agreed and recorded herein below. 

Explanation: This marks the beginning of the operative clauses of the agreement between the parties that is enforceable. It expresses the intent of the parties to be bound by the subsequent terms and conditions outlined in the agreement. These clauses form the heart of the documents that include the rights, duties, obligations etc. amongst other terms.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND 

AGREEMENTS CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS: 

Explanation: This clause describes the property agreed to be sold, including the flat number, size, and location. It confirms that the Seller holds absolute title and agrees to sell the flat to the Purchasers, and the Purchasers agree to purchase for the consideration mutually agreed upon and mentioned in the agreement.

1. AGREE TO SELL THE FLAT 

The Seller does hereby agree to sell her absolute right, title, and interest in the  flat No.1201 admeasuring about 452 sq.ft.(carpet area) on the 12th floor of the building known as “Windsor Castle” being, lying and situate on a plot of land bearing CTS No.507 in Village – Village -Andheri, Mumbai-400099  which is more particularly referred to in the Schedule hereunder written on such terms and conditions as recorded herein below and Purchasers shall pay such  consideration as mutually agreed between the Parties in such manner as recorded in this Agreement. 

Explanation: You provide the payment schedule agreed upon by and between the parties. Do not forget to include 1% towards TDS. If there is any loan, it is relevant to mention it, including the timeline for the same. Since societies charge a transfer fee, you need to mention clearly who will bear the same.

2. CONSIDERATION AND TRANSFER FEE 

2.1 In consideration of the sale of the flat, the Purchasers do and both of them doth hereby agree to pay a total consideration of Rs. 91,50,000/- (Rupees Ninety One Lakh Fifty Thousand Only) in the following manner: 

a) A sum of Rs.8,23,500/- (Rupees Eight Lakh Twenty Three Thousand Five Hundred Only) has been paid before the signing, execution and registration of the presents( the receipt whereof the Seller doth hereby admits and acknowledges) 

b) The Purchasers agree to pay an amount of Rs.91,500/-(Rupees Ninety One Thousand Five Hundred Only) towards TDS at the rate of 1% on the entire consideration amount of Rs.91,50,000/- (Rupees Ninety One Lakh Fifty Thousand Only) on behalf of the Seller within a period of thirty days from the date of registration of these presents. 

c) The Purchaser has applied for a home loan of Rs.81,80,000/- (Rupees Eighty One Lakh Eighty Thousand Only) which shall be paid within a period of 40 days from the date of registration of these presents. 

d) The balance amount of Rs.55,000/- (Rupees Fifty Five Thousand Only) and the difference, if any, between the loan amount sanctioned by the bank and the loan amount mentioned hereinabove shall be paid within a period of 40 days from the date of registration of these presents. 

2.2 The parties do and each of them doth hereby agree to make payment of the transfer fee in equal proportion. 

Explanation:  These are the representations made by the Seller to the Purchaser regarding authority to sell, co-operating with the Purchaser for effective transfer, handing over possession and title documents upon full and final payment of the consideration amount, no pending outgoings, obtaining NOC from society to sell the flat and signing all necessary and related documents.

3. REPRESENTATION BY THE SELLER: 

3.1 This Agreement has been duly executed and delivered by the duly authorized representatives and constitutes a legal, valid and binding obligation on the Parties.

3.2 The Seller declares, agrees and undertakes to extend his full co-operation in signing such documents which may be required for complete the effective transfer of the flat to the Purchasers. 

3.3 The Seller declares that he has paid the maintenance charges and municipal taxes and other outgoings in respect of the flat to the concerned local authorities and the said society up to date and there are no pending dues payable by the Seller to any statutory authority and the society and shall keep harmless and indemnified the Purchasers towards any such claim made by any authority (statutory or otherwise) till the date of handing over the possession of the flat. 

3.4 The Seller declares that the Seller has the full right and absolute authority to enter into this Agreement and that the Seller is the sole owner of the flat and of the rights derived thereunder and the Seller has not done any deed or performed any act whatsoever whereby the Seller may be prevented from entering into this Agreement and/or transfer the said rights and benefits as purported to be done hereby or whereby the Purchasers may be obstructed or hindered in enjoying the rights and benefits conferred or transferred hereby in the favour of the Purchasers or whereby the quiet and peaceful possession or enjoyment of the Purchasers in respect of the flat shall be hindered or obstructed in any manner whatsoever and there are no mortgages/charges/lien and the flat has not been offered as security or as collateral security in favour of any persons or any bank or financial institutions. 

3.5 The Seller hereby declares that the Seller has prior to the execution of these presents obtained a ‘No Objection’ from the said society to sell, transfer and/or convey the flat to the Purchasers herein. 

3.6 The Seller declares that there is no decree of any court or order of attachment before judgment of any court in respect of the flat nor there is any order of attachment from the income tax authority or any competent authority for recovery of its dues and the flat is free from all encumbrances and the title of the Seller is clear and marketable and free from any encumbrances of any nature. 

3.7 It is expressly agreed and understood that the Seller is obliged to handover and deliver the quiet, vacant and peaceful possession of the Flat free from any or all encumbrances with free and clear encumbered marketable title, and that the said lump sum amount of Rs. 91,50,000/- (Rupees Ninety One Lakh Fifty Thousand Only) agreed to be paid constitutes the entire consideration for acquiring and purchasing the entire right, title and interest in the Flat free from any or all encumbrances with a free and clear marketable title. 

3.8 The Seller doth hereby agrees, declares and confirms to handover the vacant and peaceful possession and to deliver all the original documents relating to the flat within a period of one week from the receipt of full and final payment which shall be made unconditionally and without claiming any lien, costs, charges and/or expenses or otherwise. 

3.9 The Seller hereby agrees to sign and execute such documents, papers, writings, declarations, statutory forms etc., for the completion of sale and for effectively transferring the flat in favour of the Purchasers. 

3.10 The Seller doth hereby agrees to assist and co-operate with the Purchasers in doing any act, matter and/or thing and/or in signing any documents or forms for transferring the membership in respect of the flat in the name of the Purchasers in accordance with the bye-laws of the said society. 

Explanation: There are a few obligations on the purchaser who agrees to use the flat for the permissible purpose without causing problems, abiding by all rules and regulations of authorities and bye-laws of the societies and also agrees to make payments of outgoings and taxes after taking possession of the property.

4. OBLIGATIONS OF THE PURCHASERS

4.1 The Purchasers shall not use the flat or permit the same to be used for any purpose whatsoever other than what is prescribed by the MCGM and the said society and shall not use in a way which may or is likely to cause nuisance or annoyance to the occupants of the other flats or the owners of the neighbouring buildings. 

4.2 The Purchasers shall follow and abide by the rules and regulations of the local authorities governing the said building and also the bye-laws of the said society. 

4.3 The Purchasers shall make regular payments of the outgoings, municipal taxes and other charges in respect of the flat from the receipt of the vacant and peaceful possession of the flat from the Seller. 

Explanation: This is the most important clause, which provides the consequences if anyone commits a breach of the terms and conditions of the agreement. With regard to forfeiture of the amount, it depends from case to case. If the parties agree, then you can mention the forfeiture of the earnest money paid by the purchaser to the seller in case of refund.

5. TERMINATION AND SPECIFIC PERFORMANCE 

5.1 In the event of failure of the payment of the balance consideration or any monies due on the part of the Purchasers or on account of any willful default on the part of the Purchasers, this agreement shall come to an end and the Purchasers shall execute a deed of cancellation in favour of the Seller in respect of the flat and only thereafter the amounts received from the Purchasers shall be refunded by the Seller to the Purchasers without claiming forfeiture of any amount whatsoever. 

5.2 Upon such termination of this Agreement, the Purchasers shall have no claim against the Sellers in respect of the flat and the Sellers shall be fully entitled to re–sell the flat to anybody and the Purchasers shall not take or make any objection, contention, claim or take any proceedings on that behalf. 

5.3 In the event of the sale not being completed due to any willful default on the part of the Seller, the Purchasers shall have the right to enforce specific performance of this Agreement by the Seller. 

Explanation: This is a protective clause in which the Seller agrees to compensate the Purchasers if any of the warranties or declarations made in this agreement turn out to be false or misleading. It legally binds the Seller to make good any loss suffered by the Purchasers due to misrepresentation. You can even set a cap or timeline for the indemnity like losses upto the consideration amount or claims raised within one year from the date of execution.

6. INDEMNIFICATION 

Subject to the terms and conditions of this Agreement, the Seller indemnify, defend and hold harmless the Purchasers (“Indemnified Party”) against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys’ fees, suffered by the Purchasers on account of false warranties and declaration made by the Seller in the Agreement. 

Explanation: These are certain ancillary terms and conditions. You can also mention any terms that are not mentioned above. As mentioned above there was no share certificate, so you need to mention it over here to safeguard the Purchasers in future. 

7. OTHER TERMS AND CONDITIONS 

7.1 This Agreement shall come into effect from the Effective Date and shall be valid till the payments are settled as per the Agreement. 

7.2 Nothing contained in these presents shall be construed as creating a right, title or interest in favour of the Purchasers in respect of the flat or any part thereof till the Purchasers make the payment of the entire consideration. 

7.3 Any delay and/or indulgence by the Seller in enforcing the terms of this Agreement or any indulgence of giving time to the Purchasers shall not be construed as a waiver on the part of the Seller, nor shall the same in any manner prejudice the rights of the Seller herein. 

7.4 The said society has not issued the share certificates to the flat purchasers of the said society, including the Seller herein, and therefore, as and when the share certificates shall be issued, the Seller doth hereby agree, declare and confirm that the Purchasers herein shall have absolute right to apply to the said society for issuing share certificate in their names and in their own right without any claim, lien and/or interruption from the Seller and the Seller and/or any other person claiming under him in any capacity shall and will at all times assist and co-operate with the Purchasers in doing any act, matter and/or thing and/or in signing any documents or forms for issuing share certificate in the name of the Purchasers in accordance with the bye-laws of the said society. 

Explanation: This is the dispute resolution clause, which clearly states that the parties shall try to settle the dispute amicably, but if that is not possible, then the affected party can invoke this clause to resolve the dispute. It also states that the laws that will govern this agreement.

8. GOVERNING LAWS AND ARBITRATION

8.1 This Agreement shall be governed by and construed in accordance with the laws of India. Subject to Arbitration below, the Courts of Mumbai will have exclusive jurisdiction over any dispute arising between the Parties under this Agreement. 

8.2 The Parties shall make their best endeavours to settle amicably any claim, dispute, or controversy (“Dispute”) arising out of, or relating to or under this Agreement including any Dispute with respect to the existence or validity of this Agreement, the interpretation hereof, the performance of the obligations hereunder, or the breach or alleged breach of this Agreement or any part thereof, within [15 (Fifteen)] days from the date the Dispute is referred by a Party for amicable settlement. 

8.3 In the event the foregoing procedure fails to resolve the dispute amicably, such dispute shall be referred to and be finally settled by way of arbitration at Mumbai in accordance with the provisions of the Arbitration and Conciliation Act, 1996 (as amended from time to time). In this regard, the Parties agree as under: 

(i) The arbitration proceedings shall be conducted in English. If the Parties fail to agree on a sole arbitrator within 15 days of a reference to arbitration, either Party may approach a competent court under Section 11 of the Arbitration and Conciliation Act, 1996, for appointment of a sole arbitrator.

(ii) All costs and expenses in relation to such arbitration proceedings (or any related legal proceedings) shall be borne equally by the Party. Notwithstanding the foregoing, any final decision as regards the cost of arbitration taken by the arbitration tribunal shall be binding upon the Parties; and 

(iii) The award rendered by the arbitrators shall be final and binding on both the Parties and judgment thereon may be entered in any court of competent jurisdiction. 

Explanation: This clause specifies which provisions of a contract will remain in effect even after the agreement has been terminated or has expired.

9. Survival 

The provisions of Clause 6 (Indemnification) and Clause 8 (Governing Laws and Arbitration) shall survive expiration or termination of this Agreement for any reason. 

Explanation: This clause delineates the responsibility for bearing the costs associated with stamp duty and registration of the agreement. 

10. Stamp Duty and Registration 

The stamp duty and registration charges payable on this Agreement shall be borne and paid by the Purchasers alone. 

Explanation: This clause asserts that the written contract represents the complete and final agreement between the parties, superseding all prior negotiations, understandings, or agreements, whether oral or written.

11. Entire Agreement 

This agreement supersedes all prior discussions and agreements (whether oral or written, including all correspondence) if any, between the Parties with respect to the subject matter of this Agreement and this Agreement (together with any amendments or modifications thereof) contains the sole and entire agreement between the Parties with respect to the subject matter hereof. 

Explanation: It signifies that the parties involved in an agreement have acknowledged and accepted its terms by signing the document

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective Hands at Mumbai this 1st day of April 2025. 

Explanation: The purpose of the schedule is to provide an exact identification of the subject matter of the contract.

THE SCHEDULE REFERRED TO ABOVE

Flat No.1201, admeasuring about 452 sq.ft.(carpet area) on the 12th floorof the building known as “Windsor Castle” being, lying and situate on a plot of land bearing CTS No.507 in Village -Andheri, Taluka Andheri, Mumbai-400099  

Explanation: This section acts as an acknowledgment by the Seller of having received part payment towards the total consideration agreed upon in the agreement.

RECEIPT 

RECEIVED OF AND FROM the within named i) Sheena Sharma and ii) Karan Sharma {Purchasers} an aggregate sum of Rs.8,23,500/- (Rupees Eight Lakh Twenty Three Thousand Five Hundred Only) being the part payment of the agreed consideration amount as follows: 

Cheque (s)/N.E.F.T. Remittances are below mentioned banks, Mumbai Branch ALL 

FAVOURING – Rohan Bohra,; 

PAID BY	Amount (Rs.)	Cheque No. / UTR No.	Dated (DD.MM.YY)	Bank
Sheena Sharma	51,000/-	Cheque No. 622056	20.03.2025	Axis Bank
Sheena Sharma	49,000/-	UTR No. AXMB213516161385 (NEFT)	25.03.2025	Axis Bank
Karan Sharma	7,23,500/-	Cheque No. 000021	30.03.2025	HDFC Bank
TOTAL            8,23,500/-

I SAY RECEIVED. 

Rohan Bohra

WITNESSES:- 

1)

2)          

This is how you draft an agreement for sale. Was this easy? 

You have learnt a skill worth a million dollars, so if someone asks you to vet an agreement for sale or draft one, you know how to go about it and will not rely solely on the templates.

What happens when someone commits a breach of an agreement for sale?

Have you thought about what happens when someone does not abide by the terms of the agreement for sale? What can you do, or what remedies are available to you? Let us understand what you can do if there is a breach. 

1.  Consequences of breaching an agreement for sale

But first, what does breach mean? A breach occurs when either party fails to fulfil their contractual obligations. The remedies available to the parties depend on which party is in breach of the agreement. 

• If the seller breaches
  
  • Suit for specific performance: If the seller breaches the agreement, the buyer can file a suit for specific performance in the civil court where the property is situated, typically a district or subordinate court, unless the high court has original jurisdiction based on value or location.
  • Suit for damages: The buyer may seek monetary compensation for losses incurred due to the breach. However most go for a suit for specific performance and as an alternative prayer seek damages.
    
• If the buyer breaches
  • Forfeiture of earnest money: The seller may forfeit the earnest money if it is stipulated in the agreement.
    
  • Suit for damages and cancellation of the agreement: The seller can sue for damages on account of loss suffered due to non-performance of the agreement and also seek cancellation of the agreement and retain the right to deal with the property as desired.

What are the stamp duty and registration charges of an agreement for sale?

Stamp duty and registration charges are mandatory taxes levied by the state government on property transactions:

• Stamp Duty: This varies across states, typically ranging from 5% to 7% of the property’s market value. Some states offer concessions for female buyers. 

While these figures are standard, rates can be lower (e.g., 3%) or higher (up to 10%) depending on the state, property type, and location. Additional factors like cesses or urban premiums may also apply for a few states.

For example in Mumbai, the stamp duty for an agreement for sale is 5% plus 1% metro cess totaling to 6% on the value of the property sold under the agreement.

• Registration Charges: Generally about 1% of the property’s market value, subject to state-specific variations.

Therefore, it’s advisable to consult the latest rates applicable in your state, as these charges can change.

Conclusion 

Drafting an agreement for sale is not just about blindly following the precedents. It is also about foreseeing any future trouble that may happen. Each and every clause has to be drafted keeping in mind both the parties. 

By now you have understood that a well drafted agreement for sale prevents future misunderstandings, secures rights of both the parties and also provides clear recourse in case things go wrong.

So, what did you learn? 

You do not rely completely on the templates unless your concepts are clear as the clauses would differ from case to case. Also, as I told my neighbour that day, do not simply sign anything just because the other side has handed it over to you. You need to understand it or get a lawyer to help.

So, whether you are teaching or learning this then practice by redrafting real sample agreements. Understand the “why” behind each clause and you are there.