Once a flat sale deal goes through what are the next steps ? Someone is asking me to fill in Form 21.1 & 21.2 to be given it to the society
In India, the ‘Property Sale Agreement’ comes under the Indian Contract Act,1872, the Registration Act,1908, and the Transfer of Property Act. This is applicable no matter who the seller is — friend, family, acquaintance or complete stranger. A written agreement should be entered into in order to legally establish the authenticity of the property’s ownership. All of the deeds that you receive will have to be verified by an experienced and established property lawyer.
Should you be buying an apartment from a realty company then cross-check with the Registrar of Companies on the property being of freehold nature. The apartment should be completely free of any obligations monetarily and should not be mortgaged. It cannot be reiterated enough on the importance of having the documents looked into by a property lawyer.
Here is what should be included in your sale agreement
1-Payment terms: The onus is on both the buyer and seller to come to a mutual agreement on the price of the property and all other expenses that go towards the transfer of property. This has to be included and has to be agreed on by both the buyer and seller.
The time for the disbursement of the payment should also be included right up to the last instalment. The document will need to be scrutinised by lawyers from both sides and then signed by both parties.
2-Transferring of property title: For a loan to be sanctioned, the property title is important.
This should be transferred to the buyer when the seller has got in hand the amount agreed on. The transfer is the last step in the whole process of buying the property. The property will have to be registered in the buyer’s name by the seller at the local registrar office.
3-Stamp duty: These rates are fixed by the relevant authorities and can vary with each State. The onus is on the buyer to ensure that the property has been registered in his name at the rate that the government has sanctioned for the transferring of the property.
4-Sale deed: This follows the agreement of sale and is an understanding between the seller and the buyer. Its contents need to be scrutinised by experts multiple times before you actually sign on it.
If your sale agreement lacks any of these four aforementioned formalities, you are advised to visit a lawyer and get them duly completed.
If Form 21.1 & 21.2 deal with lease of property and/or rules associated with a cooperative society, you are advised to sign it as well. If not, please ask the person in question to prove any legal need behind signing them.
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