Agreement for Sale of Property and Land - Explained in Hindi - YouTube

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Namaskar, my name is Mukul and welcome to AssetYogi

Where we unlock the knowledge of real estate and finance.

In this video, I am going to talk about the Agreement for sale of the property

Now what is agreement for sale of property

Firstly, this agreement is totally different from sale deed

It is the process before signing the sale deed

In this, all the terms and conditions are written

like how the sale deed will be, what will be the payment, and what will be the payment schedule

So we will discuss all the terms and conditions written in it.

I will tell you the full buying process of property step by step

and where the agreement for sale fits in this process

With this, I will show an actual agreement for sale

In which I will explain you all the important clauses on which you should be more focused

So watch this video from start to end so let's go directly on my computer screen

To understand the process of the agreement for sale,

We will understand the process of property buying and selling

That how to sell or purchase a property

Assume that this is the property that you want to purchase and the seller want to sell it

The first step to purchase a property is to negotiate the price

The price at which you are ready to buy it and if the seller also agrees on that price

then the next step is that you will pay some advance

Generally, the advance is 10% of the sale price.

as you pay the advance, you execute the agreement for sale

So it is the next step but what is agreement for sale?

In this, all the terms and conditions are written like how the sale will be, what are the rights of both

what can be the default payment and what types of clauses are there if anyone defaults

So we'll see that in details

When you execute an agreement for sale, you have to notarize it from a notary

and in this agreement, a payment schedule is also written that how the payment will be done

And when the payment is completed, the sale deed is executed.

So sale deed is the final document by which ownership is transferred from seller to buyer

And the sale deed is to be registered at the sub-registrar office

So if you do not register it, it will not be considered legally valid

It is very important to register your sale deed because after that only the ownership is transferred

So this was the process of buying and selling the property by which the property can be transferred

Now let's see that what types of terms and conditions are written in agreement for sale

The very first thing under agreement for sale is details of property seller and buyer

and then comes the address of property, area, its description

Details of sellers also come like what is the permanent address, father's name, and his name, etc.

and also for the buyer, details like father's name, address

we will see in detail that how all these things are written under agreement for sale

I will show you an actual agreement and after that

How much sale price you agreed comes

Then comes payment time and schedule that how much time is given by seller for making this payment

Generally, the buyer gets two to three months for complete payment

After that payment of earnest money.

Earnest money is basically an advance payment which is generally 10%

This is for, if you back out from the sale then your earnest money is forfeited

It is basically a loss, we will also see it

So this was about earnest money and payment time and schedule

Next, default penalty is written suppose buyer refuses to buy and the seller refuses to sell

Then which type of penalty will be fined?

After that, the seller has to give a declaration that he will clear all his dues before execution of sale deed,

Hence, it is the responsibility of the seller that he will clear all the dues, pay water and electricity bills

There should not be any dues for property tax, any loan

After clearing all the dues, the sale deed can be executed

After that seller need to give one more declaration that the property is free from all encumbrances

What are encumbrances? It can be any third party claim like bank charge if there is any default payment

If taxes are not paid or payment of any contractor is not done

These types of charges which should not be there on the property, like any court case or any other claim

These are all major terms and conditions which are written under agreement

and now let's see how these terms and conditions are written actually

First of all, you'll purchase stamp paper so this is our stamp paper

Generally, the one who purchases is the buyer so buyers name will come here

after that description of property like address will come here

Then the name of first party and second will come here

After that who paid the stamp duty.

If the buyer has purchased then buyer's name will come here again

So stamp paper is the first page of agreement to sell

After that from the second page, all terms and conditions are written

like as you are watching here it is written agreement for sale and purchase

and it is notarized by stamp here and date on which this agreement is executed comes here

like in this case, it is executed on Sept 11, 2016

After that details of the seller will come like name, father's name, permanent address

and he became the first party in this agreement

Similarly, details of buyers will come so as you can see that in this case, joint buyers are here

So this property is issued in the husband's and wife's name

Here are the details of husband, details of his father and with this details of wife are also written here as

their permanent address and with this, they became the joint second party

After that details of the property will come here and the address of the property is written here

After this, as we know that the agreed price is written in this case and as you can see that

This property has been sold for Rs. 25,50,000. So here is the sale price

With this, earnest money is written which is 10% generally

But in this case, is quite more

because 10% of Rs. 25,50,000 is Rs. 2,50,000

But here, it is RS.3,50,000 so buyer and seller can agree on any percentage more than 10%

there is no hard and fast rule it can be 5, 15, 20 % also on whatever price seller and buyer agree

But as a general rule, it is ten percent

After that, payment time is given which is generally two to three months

As you can see the balance payment Rs .3,50,000 is the advance payment

and to pay the rest of the payment, two months time period is given

because this agreement was executed on 11\09\2016,

so for payment of the due amount, the deadline is 11\11\2016

Second-party can do the payment before this date

And as soon as the payment is completed, the sale deed is registered in the sub-registrar office.

With this, the seller declares that he will clear all dues like water, electricity, property tax, etc

After that, a declaration is given that after this agreement, the seller cannot sell this property

and cannot back out with this agreement

if the seller backs out of this agreement then it will be a default and he has to pay the penalty

Let's see that how penalty is decided a clause is written for it

So this was about penalty

In this clause, buyer and seller penalties are written

Suppose the seller backs out from sale, then he is liable to pay the double amount of earnest money

So let's say he took 10% of the sale price, so now he has to pay double means 20%

Means he has to return the 10% and pay 10% extra as a penalty to the buyer

Similarly, if the buyer backs off from purchase as it's written buyer fails

Then, in that case, his earnest money will be forfeited and 10% will not be returned

Like this penalty is decided so that both stay with their words and no one back off from the sale

So this is a disincentive for buyer and seller to back off from the transaction.

After that seller declares that there are no encumbrances on him

Like I told you that it is a third party claim or charges

So it is written clearly that no property should be mortgaged, no gift, no will against it, no exchange

there should be no court cases, dispute, stay order, any other court order, any lease,

family or religious dispute, or any type of registered or un-registered encumbrances

Some encumbrances are recorded for mortgage deed or lease deed

but some encumbrances and charges are like if court case is there then will not be registered on records

So these types of registered or unregistered cases should not be the on property

after that only seller can sell that property

After that, some general clauses are written in the agreement like

Seller will handover all the orignal documents to buyer when sale deed is executed

With this, the buyer will be able to sell or transfer the property to anyone further

So he will get all the ownership rights

and here are some points that this agreement is irrevocable

After that, both buyer and seller has agreed all the terms and conditions of the agreement

After that, two witnesses have to sign over here, and first and second party buyer and seller will sign here

and it is notarized or attested.

I think I covered all major points on all the clauses in the agreement, I also showed the actual agreement

So I think now you will not face any problem in executing an agreement for sale

Also, I have already made a video on the sale deed

How the sale deed is executed and what type of precautions are to be taken

I have covered all these points in that video so you can watch that

So that's it in this video

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