agreement based on MoU
PRACHI
(Querist) 28 April 2009
This query is : Resolved
Hi All:
If there is an MoU between 2 parties for sale & purchase of property, what Terms & Conditions should the agreement that follows such an MoU contain?
Regards
A V Vishal
(Expert) 28 April 2009
MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING is made and entered into
at Mumbai, on this day of ___________ BETWEEN _________________
___________________________________________ both adults, Indian
Inhabitants, presently having address at Flat No. _____, hereinafter referred
to as the ‘VENDORS’ (Which expression unless repugnant to the context or
meaning thereof shall mean and include their heirs, executors, administrators
and assigns) of the ONE PART; AND _____________________________,
also an adult, Indian Inhabitant, presently residing at
_____________________________________________________________,
hereinafter referred to as the ‘PURCHASER’ (Which expression unless
repugnant to the context or meaning thereof shall mean and include his heirs,
executors, administrators and assigns) of the OTHER PART:
WHEREAS the vendors are the members of the
___________________________________________ a Society registered
under No. BOM/HSG/______________ dated _________________, and by
virtue of being the members of the said Society, they have been holding the
Flat No.____situated at ________________________________________
(hereinafter referred to as the ‘SAID FLAT’).
AND WHEREAS the vendors herein have acquired the said flat from their
own funds from ________________________ a firm of
Builders/Developers, who have constructed the said building, vide
agreements dated ___________ and have since paid the full and entire
consideration thereof to the concerned authorities and is presently holding
the said flat admeasuring _____ sq.ft. Super Built up area, OWNERSHIP
BASIS’.
AND WHEREAS the vendors have been issued five fully paid up shares of
Rs. ______/- each by the abovesaid Society.
AND WHEREAS the vendors has represented to the Purchaser that they
have been holding the abovesaid flat on ownership basis and are desirous of
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transferring their right, title and interest in the said flat alongwith the five
shares in respect of the said flat and the Purchaser herein has also agreed to
acquire the same. The final Agreement for Sale will be prepared and
executed at the time of making balance full and final payment and till that
time, this Memorandum of Understanding is made and executed by and
between the parties hereto as under:
AND WHEREAS both the parties hereto have agreed to the above
arrangements on the following terms and conditions:
1. The vendors have agreed to transfer their right, title and interest in the
abovesaid flat and the five shares thereof to the Purchaser herein for
the total lump-sum consideration of Rs.___________/- (Rupees
____________________________________________ only).
2. The purchaser herein has also agreed to acquire the said five shares
for the total lump-sum consideration of Rs. _________/- (Rupees
_________________________________________ Only) which sum
will be paid by the Purchaser to the vendors as under:
(a) A sum of Rs. _______________ (Rupees : ________________
______________________) has been paid on or before
execution of this M. O. U.;
(b) The balance sum of Rs. _______________ (Rupees : ________
_____________________________) will be paid by the
Purchaser to the vendors on or before ______________, against
delivery of the vacant and peaceful possession that is the full
and final payment shall be made positively.
3. Both the parties hereto have agreed that the deal will be completed on
or before _______________
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4. The vendors hereby declare that on execution of this MOU, they will
simultaneously make an application in requisite Form No. 20 A/B, to
the abovesaid Society for the grant of its NOC as per the prevailing
rules and regulations, signed by both the parties hereto.
5. The vendors hereby undertake and agree to deliver vacant and
peaceful possession of the said flat to the Purchaser herein on receipt
of the balance amount of Rs. _________________ as mentioned
herein and the Agreement for Sale alongwith the full set o
Yash
(Expert) 28 April 2009
Above is general format. However, any term should be incorporated only after understanding its future consequences, especially in case of dispute.
A V Vishal
(Expert) 28 April 2009
Mr Yash
Can you please guide what specific clauses should be incorporated on behalf of the buyer or the seller, to safeguard their personal interests
Dr. Harrit Jani
(Expert) 29 April 2009
Hi Prachi,
The format submitted by vishal is all right, though if you tell exectly what sort of business you are going to start and what sort of safeguards should be taken for boathe the sides, I can guide better.
Regards,
Dr. Harrit Jani
