Property Sale Agreement is a vital document. At times, the Sale Agreement is registered as Sale Deed. The sale agreement includes certain terms and conditions that have been agreed upon by both seller and buyer for the house sale. This legal notice is the acceptance of both parties to the prospects of the sale and contains the data by which the transaction will be complete. Thus, this sale agreement actually outlines the ways in which the whole transfer process takes place.
From the perspective of the buyer, it is quite important to safeguard your interests before signing. Below are 5 major clauses in a Property/House Sale Agreement to protect the buyer’s interest.
Owing to the gradual rise of prices of land and homes in urban cities, many properties are under legal litigation. Continuing for years, such legal disputes occur due to reasons like transfer of house due to force or influence. Also, it may be due to the claim on the sold house or property by the legal heirs of the seller.
At the time of signing the Sale Agreement, the buyer is supposed to pay a token amount in advance. Generally, the standard clause demands the seller returning the paid amount to the buyer if the buyer backs out of the deal. And if the seller does not want to proceed, he has to give up the amount along with a penalty amount.
Buyer’s right to call it off
Being the buyer, you have the right to change your mind about the house purchase without being penalized financially. Such situations can be allowed if the seller fails to provide the legal documents for the house. If the legal grounds of the house are not clear, then also the buyer can deny investing in it.
The buyer may also surrender the deal if his home loan gets rejected by the bank due to legal glitches. The seller is needed to produce original documents at the time of the Sale deed signing. If original documents cannot be shown, the buyer has every right to refuse.
Needless to say, it is required by the seller to clear up all the dues accumulated in respect to the property prior to the registration date. This has to be mentioned in the sale agreement.
Transfer of ownership
The clause should specifically mention that the agreement facilitates the transfer of deposits paid by the seller for electricity connection, water connection, and other housing essentials. If this clause is absent, the seller might charge extra money at the time of the house sale deed for the deposits paid by him.
Apart from these clauses, there are others that need to be looked out for. Buying or selling a house is a legal matter after all. So, while stepping into the deal, you need to have a competent real estate agent who is aware of the legal perspective.