Agreement For Sale Of Leasehold Property Legal Draft Template

AGREEMENT FOR SALE OF LEASEHOLD PROPERTY

THIS AGREEMENT is made at ____ this ________ day of ______ between Mr. A

residing at __________ hereinafter referred to as the ‘Vendor’ of the One

Part and Mr. B residing at _____________________ hereinafter referred to as

the ‘Purchaser’ of the Other part.

WHEREAS –

By a Deed of Lease Dated the _________ day of _______ made between Mr.

____________ therein referred to as the Lessee of the One Part and the

Vendor therein referred to as the Lessee of the Other Part and registered

at _______ under Sr. No. _____ of Book No. 1, at the office of the sub

Registrar at _______ the said Lessor has demised unto the Vendor the land

and Premises situated at ______ and more particularly described in the

Schedule hereunder written for a period of 999 years, from the day of ____

at the yearly rent of Rs. _______ and on the covenants, terms and

conditions therein mentioned.

The said Lese is still valid and subsisting.

The purchaser has offered to purchase the leasehold land and premises and

the Vendor has agreed to sell the same and to assign the said lease on the

terms and conditions agreed upon and hereinafter set out.

NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS :

The Vendor shall sell and assign to the Purchaser the said land and

premises described in the Schedule hereunder written and assign the said

lease for all the residue of the unexpired period of the said lease and

subject to the rent reserved by and to the terms, covenants and conditions

contained therein and the Purchaser has agreed to purchase the said land

and premises subject to the said lease, at the price of Rs. ____ out of

which the Purchaser has paid to the Vendor a sum of

Rs. ______ as earnest money on the execution of this agreement (receipt

whereof the Vendor hereby admits) and the balance of Rs. ________ is agreed

to be paid on the completion of the sale.

The Vendor shall make out a marketable title to the said leasehold property

free from encumbrances and reasonable doubts. The root of title will be the

said Deed of Lease and the Vendor will not be bound to make out a

marketable title to the property so far as the said Lessor is concerned.

The Vendor shall deliver the title deeds relating to the said property in

his possession or power within eight days from the date hereof for

inspection thereof by the Purchaser or his Advocate for investigation of

title. The said documents may be handed over to the Purchaser’s Advocate

against his personal accountable receipt for the sake of convenience, if so

required by the Purchaser’s Advocate.

If the Purchaser shall insist on any requisition or objection of any kind

which the Vendor shall be unable or unwilling to remove or comply with, the

Vendor may (notwithstanding any intermediate negotiation or litigation in

respect thereof) give notice in writing to the Purchaser or his Advocate of

the intention of the Vendor to rescind this contract unless such

requisition or objection shall be withdrawn and if such notice shall be

given and the requisition or objection shall not be withdrawn within 7 days

after the day on which the notice was sent, this contract shall, without

further notice, stand rescinded. The Vendor shall thereupon return to the

Purchaser the said earnest money but without any interest, costs or other

compensation or payment whatsoever.

The Vendor will obtain the written consent of the lessor to the assignment

of the Lease as a condition precedent to the completion of the sale.

The outgoings in respect of the said property by way of property taxes,

ground rent, land revenue payable by the Lessee till the completion of the

sale will be paid by the Vendor and thereafter they will be paid by the

Purchaser and the same if necessary will be apportioned as on the date of

completion of this transaction.

The sale will be completed within a period of four months from the date

thereof.

The sale will be completed by the Vendor executing a Deed of Assignment in

favour of the Purchaser or his nominee paying the balance of the said

price.

The draft of the Deed of Assignment will be prepared by the Purchaser’s

Advocate and will be approved by the Vendor’s Advocate.

On completion of the sale as aforesaid, the Vendor will give possession of

the said property to the Purchaser by delivering vacant possession of such

portion thereof as is vacant and by attorning tenants of such portion

thereof as are occupied by them to the Purchaser.

The Vendor declares that the said property is not subject to any

acquisition or requisition and no notice has been received by him for

carrying out any heavy or structural repairs. If any notice for acquisition

or requisition or structural repairs is issued and received by the Vendor

before completion of Assignment, the Purchaser will have the option to

cancel this agreement and in that event the Vendor will return the earnest

money paid to him by the Purchaser.

If the Vendor fails to make out a marketable title as aforesaid, the

Purchaser will have the right to cancel this agreement by giving atleast

fifteen days prior notice to the Vendor to that effect and on the

expiration of the said period, the agreement shall stand terminated and in

that event the Vendor will return the earnest money to the Purchaser and

each party will bear and pay the costs of and incidental to this Agreement.

If the Vendor makes default in completing the sale within the stipulating

period, the Purchaser shall have the right to make time essence of the

contract and to cancel this agreement thereafter by giving atleast fifteen

days notice in writing to the Vendor to that effect and on the cancellation

of the agreement, the Purchaser shall be entitled to claim and recover from

the Vendor not only the said amount of earnest money but also all costs,

charges and expenses incurred by the Purchaser of and incidental to this

Agreement and the damages suffered by him. This is without prejudice to the

right of the Purchaser to seek specific performance of this agreement

through Court.

If the Purchaser makes default in completing the sale, within the

stipulated period, the Vendor shall be entitled to make time essence of the

contract and to cancel this agreement, thereafter by giving atleast fifteen

days notice to the Purchaser to that effect and on the cancellation of the

agreement, the Purchaser will forfeit his right to the said earnest money

which will be appropriated by the Vendor towards his claim for damages

including the costs, charges and expenses of and incidental to this

agreement.

Before execution of the deed of assignment the Vendor will obtain Income

Tax Certificate under Section 230A of the Income Tax Act, 1961 as a

condition precedent to the completion of sale.

The expenses by way of stamp duty payable on this agreement and the deed of

assignment and registration charges in respect thereof will be borne and

paid in equal shares by the parties hereto and except that all the other

costs charges, and expenses incurred by the party in respect of the

transactions including his and advocates fees will be borne and paid by

him.

IN WITNESS WHEREOF the parties have put their respective hands the day and

year first above written.

THE SCHEDULE ABOVE REFERRED TO

(Particulars of the property)

Signed and delivered by the

withinnamed Vendor

Mr. ________

in the presence of

Signed and delivered by the

withinnamed Purchaser

Mr. ________

in the presence of