Agreement for Sale

A buyer pays a booking amount for a flat in Kharghar and gets a one-page receipt. Two months later the seller says the price has gone up and offers the money back. Was there a binding deal? The answer depends on what the paper says about the property, the price, the dates and what happens on default. An agreement for sale is where a property deal is won or lost before a single conveyance is signed. What must it contain?

In two minutes

An agreement for sale is a contract that a sale of immovable property shall take place on terms settled between the parties; it does not itself create any interest in or charge on the property (TPA s.54), so the sale is completed only by a registered conveyance, but a well-drafted agreement fixes every term that the conveyance will carry out.

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