What is this document?
A property sale agreement (agreement to sell) is a contract where the seller agrees to sell and the buyer agrees to purchase a specified property on agreed terms, with the final transfer usually completed through a registered sale deed. It identifies the parties, property, price, payment schedule, possession date, and remedies if either party defaults. It is distinct from the sale deed itself, which actually transfers title when registered.
When do you need it?
- Buyer and seller have agreed on price for a flat, plot, or house
- Paying token or advance money that should be documented in writing
- Waiting for home loan sanction before registering the sale deed
- Purchasing under-construction property with milestone payments
- Documenting commercial property or land deals before registration
Key clauses and elements
- Parties and property — seller/buyer details and full property description
- Sale consideration — total price, advance paid, and balance payment schedule
- Timeline — date by which sale deed will be executed and registered
- Title and encumbrances — seller's warranty of clear title
- Possession — when buyer gets physical possession
- Default and forfeiture — consequences if either party backs out
- Stamp duty and registration — who bears costs and government charges
Frequently asked questions
Related documents
Before spending on stamp duty and registration for the final sale deed, parties often execute a written agreement to sell to lock in price and obligations. DraftPe helps you draft this document with structured clauses suited to Indian property transactions, whether for a residential flat, plot, or commercial unit.
Read below for what the agreement should contain and when you need it, then use the wizard to build your document step by step.