There should be a mention about
the religion of the seller in the agreement because in case
of inheritance, different laws govern people of different
religion.
There should be a proper and
clear description of the immovable property covered under
the agreement of sale.
It is important to include the
nominee clause in the agreement.
Any agreement must contain a
clause that the sale transaction is subject to the approval
of the title of the seller by the advocate of the purchaser.
It is not advisable to buy properties
including flats without vacant possession.
Care must be taken while calculating
undivided share/interest in the land. Normally, calculation
of undivided share of land is done by multiplying the total
land area with the particular flat area and dividing by
the total built up area.
It should be clearly mentioned
in the agreement that stamp duty and registration charges
must be borne by the purchaser.
While drafting the agreement
it should be mentioned that all taxes and other public charges
in respect of the property should be borne by the seller
upto the date of giving vacant possession or registration
and thereafter it should be borne by the purchaser only.
If the sale value of the property
exceeds the prescribed monetary limit, the seller and purchaser
must forward copies of the agreement to the Appropriate
Authority appointed under the Income-Tax Act, 1961 under
XX-C within 15 days along with Form 37-I prescribed under
the Act for their No-Objection certificate.
Specific performance can be
enforced only against the seller and not against the purchaser.
It is better to mention in the agreement of sale that in
case of default by the purchaser, he/she will be liable
for liquidated damages.
Care must be taken to ensure
that every Power of Attorney contains a clause to receive
the sale consideration and if it is not there, it is not
advisable for the purchaser to go through the transaction
with the Power agent.
It is better to insist on registration
of Power of Attorney especially in case of immovable property
even though the law does not make it compulsory.
In order to obtain the legal
opinion, the following documents will be required.
Original sale deed in favour
of the seller. - Agreement of sale between the seller and
buyer. - Parent documents (original/certified copies).
In case of flats, construction
agreement. -No-objection certificate from the Appropriate
Authority, wherever applicable.
Property tax demand card/tax
paid receipts.
Water and sewerage tax demand
card/tax paid receipts.
Patta / Extract from the permanent
land register.
In case of agricultural lands
Chitta Adangal extract giving the nature of crop etc. and
kist receipt.
Death certificate and legal
heir certificate wherever applicable.
Encumbrance certificate for
30 years upto date.
Approved building plan.
Physical measurement and personal
inspection of the property for identification is necessary
to avoid pitfalls.
It is better to avoid the memorandum
of understanding and straightaway go in for an agreement
of sale. The courts have held in certain cases that the
Memorandum of Understanding cannot substitute a full fledged
agreement between the parties.
