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Initial car sale agreement template

hello friends this is pp and welcome to la for all in this video we're gonna be learning about how to draft an agreement for sale now an agreement for sale is covered governed under by the Indian contract Act whereas the sale date is gone by the transfer Property Act an agreement to say it is essentially an agreement in agreement as that of any other agreement except that it is an agreement to sell a specific plot or a property or anything it can be the removal or any mobile asset so therefore an agreement to sell is only an agreement and it is not actually as a transaction of sale now before I proceed into this video I would like to point out that if you're interested in learning about various subjects under the Indian law then I left some useful tips and I'm sorry I've left some useful links in the description section of this video so you can kindly check that out if interested now proceeding further an agreement for sale either fronted out is only in agreement to sell something and not actually a transaction or sale so therefore if an agreement for sale of plots a is executed even the possession is granted to the respective purchaser it would not create any sort of a vested right in the purchaser because there would not be any specific transfer of right to only be an agreement for sale of that specific plot now when agreement for sale is required to be registered I'm sorry it is not essentially required to registered under the Indian Education Act but an agreement for sale require the stem to stem duty to be paid as per the Indian Stamp Act so registration is required for those documents which only create or purport to create a right or any interest in the subject matter of the property in the third person so if the document is of such nature only then is it required to register not not otherwise so therefore an agreement of for sale as I pointed out previously does not create any right in the third party and so therefore an agreement for sale is not required to be registered before the sub registered under the in registration act now I have also prepared a demo agreement for sale as all and I will be turning to that demo now and I will show it to you guys now this is the name of the union of the of the agreement was heal the ref repaired now let us get him with the agreement and try and understand how the agreement is drafted now this is the general format this agreement for sale is made at so and so on this one so date that is if to state the place and the date on which the agreement is made that would be the first recital then afterwards you state the name of the parties now and again as always in every legal document of convenience you have to describe the party or the person as much as you possibly can that is the party's name is required to be stated the name of the father the age the marital status the employment status the residential status and all of that would have to be mentioned so that the person can specifically be identified now some of the so if the document is to be registered before the supplies start then some suffrage starts all trends is to fajn stating the pan card number and the email address is the mobile number what have you you know as many details as you can possibly give them so that the person can distinctly be identified so therefore that is something that you have to keep in mind now the person who is for putting Popo putting to sell a plot or any mobile property to a third person is always referred to as a prospective vendor that is a person is not actually selling something through an agreement for sale as I pointed out earlier an agreement for sale does not create any right in the third party an agreement for sale is only an agreement to sell something in the future so therefore the person who said who is purporting to sell property to a third party his already referred as the prospective vendor and the person who is buying the property or was interested in buying the properties to refer to as the prospective purchaser now this term right here that is the perspective vendor or the prospective purchaser as the case may be either require can be anything it is not necessary that it has to be stated in the specific these Pacifico three got to be used you can use any sort of phrases you like so long as they make sense and they fit into the context like for example the first 40 the second party you know and the transferor the transferee you can use such terms also so long as they make sense in this so long as the version of the context of the document you know subsequently ot of take care of is this phrase right here that I've highlighted there is which expression unless repugnant to the context of meaning they're optional and Rudy's hairs executors administrators and a science now this phrase essentially means that is in the event subsequently after the agreement is executed that the prospective vendor or the prospective purchaser as the case may be expires then the legal heirs of that state person coming to the picture and so therefore this phrase covers that aspect of legal heads coming to the victor that is this phrase provides that the prospective vendor shall also include his heads and executors and administrators and a science if in the event the prospective under is personally not present or if he expires or if he transfers is the right or interest to any third person now same applies to the prospective purchaser also this clause can be individually placed or also or otherwise a specific clause can also be placed which will apply to all the parties in an agreement and that is it generally convenient if there are many parties in an agreement now proceeding further in here in this forum and the vendor number one was represented by his duly constituted power of attorney so if in case of any parties represented by their father to me then it is required to be stated in this fashion instead of stating it here altogether it can be stated in this fashion so that it becomes a little more convenient then proceeding further these are something known as the recitals in an agreement there is something called a recital and there is something called as a conent now coherent is something that I'll get to later but I will first explain the recitals now recital essentially means an introduction in an agreement the flow of title will have to be explained the prof to be explained and how the property came to me came to be about what the property constitutes and what it forms a part of we left we explained that is how the title of the property can clearly be made out and it becomes easier for both parties to understand and interpret even in the event if the properties to be subsequently sold to third parties it becomes easier so this is called century recital in an agreement so therefore in a recital as I pointed out you explain the story as to how the vendor became the owner of the property and how the purchaser came to meet the vendor and how the transaction was struck so this is essentially a recital and this is how it is always drafted it it always starts with whereas whereas there exists the property admitting anything of about so-and-so and in the later paragraphs it is always n whereas that is you have to end whereas that is it is sort of a continuation to this whereas except that this is a separate paragraph so you have to keep on adding n whereas all subsequent paragraphs and that is how you have to draft paragraphs now finally you have to state s - this is this is a standard clause which is always stated that is anywhere as the perspective vendor is agreed to sell to the prospective purchaser and the respective which is agreed to purchase the set property for a total consideration of a fee so and so so we have to state the amount for which the agreement of sale is to be struck furthermore you have to also state the for the purpose of payment of stamp duty if in the event a registering the agreement for sale then you have to state as to how much the property is valued for because the state then accordingly stamp duties required to be paid so this is also and so this also is an important clause and so yes so this clause also will have to be included and in that fashion now another thing to keep in mind specifically is the fact that you have to you know sort of state this part here that is property that is to be sold it may be the largest probably the smaller property the property will always have to be described in a jewel that is for example you every property there has to be there has to be one specific phrase which one can use to refer to the entire property otherwise it becomes inconvenient for the parties to keep on explaining or the transmen to keep on explaining the boundaries and the details of the property sometimes it so happens that there are many properties and therefore it becomes a little difficult to explain those properties so therefore what is required to be done is multiple properties sort of you know I'm there so therefore specific words of view so therefore as in this case the world schedule is used that is the problem so therefore as in this case this there is a specific schedule I think as the property and therefore the property shall always be referred to as the set property and then that property shall be described in the schedule of the property so this is how you you know one other drafting this is one of the drafting conventions which you have to also take into consider and every chess to be kept in mind accordingly now also you have to state that this clause right here that is now this agreement of sale witness it as follows that is once this statement is made whatever proceeds afterwards is the covenants that I was referring to previously now we have been all this while you have been dealing with the recitals of the of the agreement for sale and now we are going to deal with the covenants that is specific conditions in the agreement for sale whatever that has been a three to fajn between the respective vendor as well as the prospective seller prospective purchasers sorry so now in this now these are the conan's that that is I'll just read out of you the prospective underway acknowledges accepts admits the received Osama rupees so enjoyed by the respective forces or to the prospective and today that is in the execution of this agreement as part payment by cash that is if in the event any part payment is me required to be stated specifically and the receipt of that amount is required to be specifically acknowledged by the opposite party as well so that there is no conclusion subsequently so it is required to be stated in this fashion if in case no part payment is made then there is no issue because the thing is that for a contract to be valid as you can already know under the Indian contract every contract has to have has to have a consideration every promise made has to be for a consideration which is either paid promised partly paid or partly promised so therefore if a contract if a contract does not have a consideration then the contract does not become valid in the eyes of law so that is one factor that has to be kept in mind every contract has to have a specific consideration without which the contract does not become valid so that is another thing that has to be funded out has to be kept in mind so therefore if part payment is made then it is required to be specifically made a mention off in the covenants of the agreement now proceeding further second covenant that is the perspective and hereby agrees to sell transfer convey and assign all his rights this is a property in favor of respective Protege sir and the deed of sale shall be executed within a period of sand someone's on the rate of execution of this deed now the date period within which the agreement is do complicated it is also required to be stated in the agreement otherwise the agreement becomes agreement always remains in a lingo because the parties have to know as to when the agreement would finally crystallized so therefore it is always safe practice to state as to within what period the agreement is to be completed unless otherwise the parties explicitly agreed they do not want any man remote for the set agreement now proceeding further the prospective purchaser shall pay the remaining amount roughly so and so on the day of the execution of the deed of sale that is generally the convention that is followed the remaining balance consideration or document is always paid when the document crystallizes now this this covenant also is something I was taking note of that is the prospective for change that shall have and I had a specific performance of this agreement in case a prospective under fails refuses to execute the deed of sale now this covenant is not required to be stated necessarily because it is effective whether this covenant is stated or not as for the specific Relief Act the person whoever neither the parties will have a right to specific performance so therefore it is effective whether if this statement is made or not the quality will always have a right of specific performance such clauses like the respective and orders hereby confirmed that the respective vendor is the only unreserved property and that it is free from any cue bronzes and there are no claims whatsoever is also sort of an indemnity it is to meant to protect the prodigies their prospective for say their so this is also another you know important clauses the furthermore that is the this is sort of an on a force majeure clause that is it states that if in the event the respective we rendered hereby agrees that the said property could not be conveyed in the fear of the prospective purchaser or if the deed of sale could not registered do you could the defect in that letter prospective ended they shall defend all the money they see you on the respective or the other with the compound interest of eleven percent so therefore if in the event a deed of state is not executed then the part payment made by the prospective purchaser is stuck with prospective vendor so therefore since it is stuck if in the event the document cannot be made then the amount is to be returned with compound interest of eleven percent this is an optional cone and some do put it some do not so that is something also that is that can be considered and then finally the schedule is to be stated at the end now this is the system this is the format of stating a schedule in an agreement for sale it is the same as that of how it is stated in s Ald as well so you guys if you want to go through it then you can pause the video and go through the content by the way you can pause the any part of the video and then go through the draft that I've already prepared and you will get an understanding of how the agreement distributed after finally this is this is how this is a standard clause standard statement that is made in the agreement and then this is followed by the signatures of the parties and thumb impressions if any also something that is to be kept in mind is an agreement required being attested by two competent witnesses so that is necessary even though even if it is not registered even if it is not notarized the agreement for sale requires it to be tested with two competent witnesses without which the agreement is not complete so you have to make sure that the agreement is always attested by two competent witnesses now that is it that is all that I have for you in this video I hope you have learned something and I hope that I've been able to help you if you like this video kindly do give it a big big thumbs up kindly share the video with your friends if they might be interested and subscribe to this channel for more such content thank you for watching you