An exclusive apartment community spread on 6.3 acres with
excellent connectivity to all parts of the city. Comprising 14 towers of B+G+4
floors with each offering 2 and 3BHK apartments,
Krishna Mystiq is also embellished with refreshing amenities, which revitalizes
you. Clubhouse with fully equipped gym, games toom, swimming pool, toddlers
pool, landscaped garden and lots more...
Project
Name: Krishna Mystiq
Apartment Type: Multistorey
Apartments
Area
Range:1110-1375 Sqft
Price: Call For price
Location : House Road, Bangalore
Bed
Rooms: 2 BHK, 3 BHK
An
Article Regarding "A SMOOTH SALE AND CLEAN BUY"
An
Agreement to sell is the first step taken towards purchase of a property. This
facilitates trouble free transfer of property based on the terms and processes
that have been already discussed and agreed to between the seller and the buyer.
Sale
and purchase of immovable property requires considerable time for completion of
process and compliance of various obligations, since the stakes are high. Hence
both the parties have to come to an agreement regarding the consideration
amount, mode of payment and time duration. The terms agreed are put in writing
in the form of an agreement, which is known as Agreement to Sell.
The Agreement to Sell is governed by the provision of the Indian Contract Act
1872 and the Transfer of Property Act 1882.
Being in
accordance with the provisions of
the Transfer of Property Act 1882, a legally valid contract between the parties
as per the provisions of Indian Contract Act, 1872 is mandatory.
It
defines the agreement to sell as a contract that a sale of such property that a
sale of such property takes place on terms settled between the parties. It
further specifies that the agreement to sell does not create any interest in
property or charge on such property. The purchaser who has entered into an
agreement to sell with the owner of the immovable property is not entitled to
any compensation if the property is acquired by the government. Further in case
of suit of injunction against the owner, the purchaser who has entered into an
agreement with the owner does not have any right to be imp leaded in the suit
and heard on the basis of the agreement to sell (Azeemur Rehman Vs Union of
India Air 1995 ALL316).
The
execution of agreement to sell needs to be witnessed by two persons capable of
entering into contract. Further, with regard to witnesses, it is advisable that
the witnesses be from the side of both parties i.e. one from the purchaser’s
side and one from the seller’s side. And in case of execution of a sale deed.
It is advisable that both witnesses be from the purchaser’s side. According to
the Indian Registration Act, 1908, the registration of the agreement to sell is
only optional. If registered it helps in establishing the bonafides of the
transaction. Further, encumbrance certificate discloses the subsistence of such
an agreement which deters any further agreements, unless the existing one is
cancelled.
Section
55 of the Transfer of Property Act deals with the rights and liabilities of
seller and purchaser. If the agreement to sell does not specifically refer to
the rights and liabilities of seller and purchaser, the provisions of section
55 are enforceable.
Persons
must be competent to enter into a contract. They must be major, sound mind and
not disqualified from contracting. The names of the parties to the contract,
their age, father’ s name, in case of married woman, the husband’s name, and
places of their residence should be mentioned. Care should be taken to make all
the owners as parties to the contract. In case any of the joint owners is not
available to execute the agreement, a clause is added to the agreement that all
persons having interest in the property shall execute the conveyance deed. A
partnership firm is not a legal person and as such all the partners should sign
the agreement.
Nature
of the title held by the seller, including any encumbrance such as lease,
mortgage, charges on the property should find a place in the agreement. If the
executants of the agreement is not the owner, then his status and his authority
under which the agreement is executed should be mentioned.
Location
and description should contain the roads on which they front, the existing and
former occupations, the municipal number, street, road with complete
boundaries, and properties surrounding the property agreed to be sold. It
should also include the area of the site, built up area, floors, type of
constructions, materials used etc. The details should be exhaustive so as to
identify the property clearly. Sections 21 and 22 of the Indian
Registration Act makes it mandatory to disclose the details.
Consideration
amount, the price at which the property was agreed to be transferred is very
important and an essential portion of the agreement. If the consideration
amount is not mentioned, the contract becomes void. The consideration disclosed
should be in money value, and it should not attract the provisions of exchange
of property as detailed in Sec 118 of the Transfer of Property Act.
The
agreement should contain a clause that the seller should produce the documents
of title in his possession for scrutiny by the purchaser and his advocate. Sec
55 (1) of Transfer of Property Act makes it mandatory to produce the documents
for scrutiny.
Possession
is the most important ingredient of the sale transaction. The mode and
time of possession should be clearly and specifically mentioned. It may
please be noted that the seller need not give possession of the property to the
purchaser on execution of agreement and on part payment. Possession has
to be given on completion of the sale process and receipt of full consideration
amount after execution of the conveyance deed.
If the
possession is given on part payment of the consideration, section 53 A of the
Transfer of Property Act operates. In such an event the seller shall never be
in a possession. The only recourse available to the seller is to recover
the balance amount due.
The
agreement should also refer to the mode of possession of the property and
whether it is vacant or not. If the property is let out, the seller may give a
letter of allotment to the tenants, to acknowledge the purchaser as the future
transferee. In such cases, a clause regarding token delivery of possession by
the purchaser, and issue of assignment letters should be included.
The
sale agreement should contain a clause stipulating the time within which the
purchaser will pay the full consideration amount and get the sale deed executed
and registered by the seller. It is always advisable to pay less amount of the
sale consideration as advance and further, it should be kept in mind that the
balance maximum portion of the sale consideration must be paid only at the time
of registration of the sale deed.
There
may be local laws and other statutory obligations to be complied with for
completion of sale. Permission may have to be procured from certain
institutions. Any such obligations to be completed and the time for such acts
are to be incorporated in the agreement.
Sale
process includes various expenses like legal fee, stamp duty, brokerage and
expenses towards statutory clearances. Terms of agreement should be clear as to
who has to meet these expenses.
The
agreement should also contain penalties for non-performance of the terms of the
agreement. The onus on the seller is that he shall during the period between
the date of agreement to sell and actual handing over of the property to the
purchaser, not create any charges no the property and at the same time maintain
the property.
If any
of the parties fail to perform, a party may sue the other party for specific
performance as per the terms of the agreement. The limitation available is
three years and it starts from the date on which the act is to be performed.
Purchase
of property is a transaction where the parties to the transaction must be of
identical mind to ensure smooth and uncomplicated execution of the transaction.
The agreement to the sale contains all the terms and conditions on the basis of
which the physical process of transfer of property will take place on a
step-by-step basis. The agreement to sell clearly defines the duties of the
buyer and the seller and the tasks to be performed by each, ultimately leading
to the registration of the sale deed and thus ensuring a successful and stress
free sale and purchase of immovable property.
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