Agreement of sale
KISHORE
(Querist) 29 December 2015
This query is : Resolved
Sir, An agreement has been made on Rs.100 Stamp Paper one month back between me and owner of a plot in the following manner. After payment of advance amount, I came to know that the said plot is to be kept free from buildings and other obstructions under 'Work of Defence Act 1903', since it is located near to a Defence Establishment. (the ownership of the plot is clear but the plot comes under work of defence act 1903). I purchased the said plot with an intention to construct a house, since I can't do any construction on the said plot, I requested the plot owner to refund my advance amount, but he is not responding. Kindly guide me, how to get my advance amount return.
AGREEMENT OF SALE
THIS AGREEMENT OF SALE is made and executed on this xxxxxx day of xxxxxx, 2015, BY AND BETWEEN :
(Name of the person and address xxxxx), aged about xxxxx years, Occupation : xxxxx, R/o.xxxxx.
Hereinafter called the `VENDOR`, which expression shall mean and include herself/himself, her/his/their heirs, executors, administrators, legal representatives and assigns;
IN FAVOUR OF
(Name of the person and address xxxxx), aged about xxxxx years , Occupation:xxxxx , R/o.xxxxx.
Hereinafter called the `VENDEE’, which expression shall mean and include herself/himself, his/her heirs, executors, administrators, legal representatives, and assigns;
WHEREAS THE VENDOR herein is the sole and absolute owner and Peaceful Possessor of the Open Plot No.xxxxx (area and address of the plot). Having purchased the same from xxxxx.
And WHEREAS, the VENDOR herein offered to sell the ABOVE SAID PROPERTY free from encumbrances, to the purchaser for a total consideration of Rs.50,00,000/- (Rupees Fifty Lakhs only) as they are in need of money for their urgent financial and family necessities and the purchaser agreed to purchase the same for the said consideration.
NOW THIS AGREEMENT OF SALE WITNESSETH AS FOLLOWS:
It is hereby agreed by and between the Vendor and the Vendee that the Vendor agreed to sell, and Vendee agreed to purchase the above said property for the sum of Rs.50,00,000/- (Rupees Fifty Lakhs only) free from encumbrances, subject to the following terms and conditions.
1. THAT the VENDEE had already paid a sum of Rs.16,00,000/- (Rupees Sixteen Lakhs only) by following manner before the witnesses, as advance and earnest money,the receipt of which sum, the Vendor hereby admits and acknowledges.
a) Rs.8,00,000/- transferred through RTGS in SBI vide reference No.________ dated __________ in SBI account of i.e. Vendor.
b) Rs.8,00,000/- by way of Cash.
2. That the VENDEE hereby agreed to pay the balance sale consideration of Rs.34,00,000/- (Rupees Twentyfour Lakhs only) within the period of Sixty (60) days or at the time of Registration.
3. That the VENDEE shall bear all the expenses of sale such stamp duty, registration fees and drafting charges and all other incidental charges in respect of the sale deed.
4. That the VENDOR further undertakes to register the above said property after getting the Clearance from the concerned authorities and execute all such documents and later that is necessary to perform the title to the VENDEE.
5. If the Vendor has fails to execute and register the said sale deed within the specified time referred to above even after the offer of balance of consideration she shall be liable for specific performance of this agreement and shall be liable to pay costs and damages to the VENDEE.
6. That the VENDOR declares and covenants with the VENDEE that the Schedule mentioned property is free from all encumbrances, such as prior Sale, Mortgages, Sale Agreement or otherwise and undertakes to indemnify the VENDEE in the event of any Loss or Damage incurred by him.
7. That the VENDOR hereby undertakes to execute and sign and get the sale deed, registered in respect of the schedule mentioned property either in the name of the VENDEE or his nominee or nominees any time when called upon to do so.
8. The land is not an assigned land within the meaning of A.P. Assigned land (Prohibition of Transfers) Act No.9 of 1977; and said property does not belong to or under mortgages to Govt./Govt. Undertakings/Agencies.
SCHEDULE OF THE PROPERTY
ALL THAT PIECE AND PARCEL OF THE Open Plot No.(area and address of plot xxxxx) and Bounded by:
NORTH : 25' Wide Road;
SOUTH : Plot No.xxx;
EAST : Plot No..xxx;
WEST : Plot No.xxxx;
IN WITNESS WHEREOF, the PARTIES above named have set their respective signatures into AGREEMENT OF SALE, on the day, month and year, first above mentioned.
WITNESSES :
1.
VENDOR
2. VENDEE
Guest
(Expert) 29 December 2015
You have no clause in sale agreement to help you. Moreover the contracts act clause buyer beware apply.
It is always prudent to do site verification by making inquiry, checking the revenue records ( title search) and finding out if any restrictions are there for making particular type of building and if it comes in any zonal plan.If you have used services of a real estate agent catch him.
If you had mentioned in sale agreement you intend to buy plot for constructing house you would have some thing to help
But still you give notice to the seller for hiding vital details and for refunding money with interest within expiry period of this agreement otherwise your money and agreement will both lapse
Guest
(Expert) 29 December 2015
Some cases came to our notice that there were plans to lay oil and gas pipeline to pass through underground of agriculture plot bought by the buyers.
Devajyoti Barman
(Expert) 29 December 2015
You require a customised advice on its drafting. Meet a local lawyer and instruct him accordingly.
Guest
(Expert) 29 December 2015
Well Advised by Expert Mr.Devajyoti Barman
Rajendra K Goyal
(Expert) 29 December 2015
Agree with the expert Devajyoti Barman.
Guest
(Expert) 29 December 2015
For benefit of members of LCI who are non advocates and querists we would like to advise as below
Property sale purchase is a tricky business specially the ones under agricultural and ancestral properties.
Hence when buying a plot or hosue it is advisable to take services of a property lawyer or real estate expert and not try to save pennies.
Due diligence is required while buying property. Like Title search to see historical record of ownership in revenue department, location advantages and disadvantages of site including current master plan of development authority and availability of various facilities like road ( You may have problem if approach is through permissive easement access form a adjacent landlord)
The plots that are close to defense areas, airports etc also need caution as they come in flying zone or defense development.
The plots that are close to highways need certain distance as unreconstructed form margin of the highway.
These are expert activities and a good estate agent is supposed to know all this and advise suitably.
Also keep in mind that land owned by special categories like SC/ST owners cant be sold to non-st/SC buyers and is illegal abintio
All the best
KISHORE
(Querist) 29 December 2015
Sir, in agreement of sale, condition 2 says the balance amount will be paid within 60 days or at the time of registration. As per this, if i don't send notice within 60 days the agreement of sale is still valid or not. If valid how long it will valid ? Pls confirm. Moreover, the layout of the plot is approved by gram panchayat which is not the competent authority, It is not fulfilling the condition 4. Am i right? Pls go through the agreement of sale and advice me accordingly. My main intension is to get back my advance amount.
KISHORE
(Querist) 29 December 2015
Experts, kindly go through the agreement of sale thoroughly and advice. With regards.
Guest
(Expert) 29 December 2015
@Kishore ji we dont know if it is mofussil land ,semi urban urban or purely agricultural.And who is competent authority.if land is covered under defense development how gram panchayat issued certificate and for what purpose?
Have you talked to nearby people /neighbors specially those who have plots or houses under construction?
Though your clause 4 gives strength but it does not mention clearance for what use of land.
So please take help of a local sharp real estate agent or lawyer engaged in property licencing/ legal work.
In view of high cost of land and lack of all facts it would be risking your money by giving our advise from remote.
Based on exerts comments above you have got good picture of situation and possible course of action.
Contract has to be executed meaning registration of sale deed within stipulated period. There is default penalty prescribed for buyer as well as seller who backs out. But you have to bring on record deficiency in purchase within stipulated period.
