Property Agreements | Property Sale Agreement in India: A Buyer's Guide

 A Property Agreement is a legally binding document between two or more parties related to the sale, lease, transfer, or development of a property. In Maharashtra, all such agreements must comply with the Registration Act, 1908 and Bombay Stamp Act, 1958.

Types of Property Agreements:

1. Agreement for Sale

   • Between buyer and seller before final sale deed

   • Mandatory to register under RERA (for under-construction properties)

2. Sale Deed

   • Final document transferring ownership

   • Must be registered with the Sub-Registrar

3. Gift Deed

   • Voluntary transfer of property without monetary exchange

   • Needs stamp duty & registration

4. Lease Agreement / Leave & License Agreement

   • Temporary transfer of use rights

   • Usually for 11 months (Leave & License)

5. Development Agreement

   • Between landowner and developer/builder

   • Governs terms for redevelopment projects

6. Power of Attorney Related to Property

   • Authorizes another person to act on your behalf in property matters

Process for Property Agreements:

1. Drafting

   • Agreement should clearly mention names, property details, consideration amount, possession terms, and legal clauses

2. Stamp Duty Payment

   • As per ready reckoner rate or agreement value, whichever is higher

   • Can be paid online via GRAS portal

3. Registration at Sub-Registrar Office

   • Parties must be present with original documents and ID proofs

   • Biometrics and photos are taken

Stamp Duty & Registration Charges in Maharashtra:

• Stamp Duty:

  • 5% in most parts of Maharashtra (Mumbai may have slight variations)

  • 1% additional registration charge

• For women buyers: 1% concession in stamp duty

Documents Required:

• Draft of Agreement

• Aadhar & PAN Card (all parties)

• Passport-size photos

• Property documents (previous chain, ownership proof)

• Tax receipts / society NOC (if applicable)