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Drafting a Property Sale Agreement for NRIs

After the buyer and seller mutually agree on the purchase price, a formal Agreement of Sale must be prepared. To be legally valid and admissible in an Indian court, this contract is printed on Non-Judicial Stamp Paper. The value of the required stamp paper (known as stamp duty) is a percentage of the property’s value, which is mandated by and varies significantly from one state government’s laws to another. 

What does this agreement consist of?

  • Buyer(s) details: Full Name, Date of birth, PAN card, Aadhar card details, address
  • Seller(s) Details: Full Name, Date of birth, PAN card, Aadhar card details, address
  • Property Description: Accurate identification including the address, plot/survey number, dimensions, built-up area, and boundaries, parking, etc
  • Sale Price: The total agreed-upon transaction value including a breakdown of any additional charges (e.g., parking or amenities).
  • Advance Payment: Details of the earnest money or token amount already transferred, accompanied by bank transaction details and invoices.
  • Closing/Possession Date: The agreed timeline for the final transfer of ownership and physical possession of the property.
  • Signatures: The legal signatures of all parties involved, often executed in the presence of at least two witnesses. 

Template

  • template link – Please create a copy of the template.
  • The provided template serves exclusively as a reference guide to help you understand the structure and essential clauses of a property contract. Since, the real estate laws vary by location this document should be treated as a conceptual draft rather than a final legal instrument.

Stamp Paper

To ensure legal validity, the finalized agreement must be printed on Non-Judicial Stamp Paper of the correct denomination as mandated by your specific State’s Stamp Act. It is a mandatory legal requirement that every single page of the document is printed directly onto the stamp paper and signed by both parties to prevent tampering and ensure the entire contract is legally enforceable.