The real estate sales contract is the most important document. It is different from sale deed, although in some cases the sales agreement is registered as „Sale Deed“. The sales contract contains conditions of sale agreed between the seller and the buyer for the sale of real estate. It is legally binding on both parties. It also indicates the date on which the transaction will be concluded. For laymen, the sales contract is a roadmap on how the real estate transaction is concluded. On the other hand, the deed of sale is executed at the time of the actual transfer of ownership, i.e. the transfer of ownership from the seller to the buyer. The sales contract should include a penalty clause clearly setting out the milestones and penalties in case of failure of the seller and the buyer. „The clause setting out the payment plan sets out the total amount to be paid and the schedule within which it must be paid,“ Hariani explains. `In cases where payment is made in instalments, the payment plan shall set out details on each instalment. This helps to avoid ambiguities that may arise in the future,“ Hariani points out. The agreement must contain the buyer`s full payment details, including the mortgage, if any.
Before proceeding with the deed of sale, be sure to confirm the amenities actually available with the equipment mentioned in the agreement. If any of the equipment mentioned in the agreement is not provided in the building, this is a breach of contract and the buyer can benefit from legal aid. ● Once the jurisdiction of the parties is established, the agreement separately establishes the different rights and commitments of the buyer and seller. It could also provide for time limits for the performance of certain obligations, such as repair, maintenance, etc. It is extremely important to carefully review these clauses with the assistance of legal counsel. These include various amenities available to the buyer and the property itself. At the time of signing the sales contract, the buyer pays X amount in the form of token money. The standard clause is agreed that if the buyer leaves the company, the total amount of the tokens is cancelled by the seller. I would suggest adding another line in this clause that if the seller does not withdraw from the transaction, the seller returns the amount of tokens paid by the buyer with the corresponding amount as a penalty. If this clause is not fixed, the seller will continue to look for a new buyer who can pay more. He will cancel the agreement if he gets a new buyer at a higher price before the execution of the deed of sale.
The „Essential Time“ clause in an agreement sets out the contractual deadlines by which the parties can fulfil their obligations due. Make sure the agreement has a clear sanction if the agreement is not concluded by one of the parties. This would help to cover any losses that may result from the non-closing of the transaction. It is also important to register the document in order to obtain additional legal protection. Adding a dispute resolution clause is also important to ensure that all disputes are professionally sorted. The termination clause defines the consequences imposed on the parties in the event of a derogation from the code of conduct they expect. The agreement may include either a „termination for convenience“ in which either party may terminate the agreement. . .