Buying A House? Read Your Purchase Agreement First

Bangalore: Purchase agreement is an important document to look at, when you decide to buy property. This legal document provides clauses, terms and conditions based on property transaction where both buyers and sellers need to sign on the dotted line for validation of the agreement. However, this requisite contract will lose its credibility if any party does not fulfill the commitment and the other party can turn the contract void or null, reports Amit Shanbaug of Economic Times.  

The purchase agreement comprises of documents like residential/office address, bank details, PAN card, to name a few along with information about the property seller. "Among other things, the seller must confirm the authenticity of the title document and ownership transfer, and state clearly that the process of handing over the property is legal and has been duly attested. The agreement should also state that all the dues related to the property have been cleared before it is transferred," said Om Ahuja, CEO, Residential Services, Jones Lang LaSalle India, reports Economic Times.

Adding to it, “The agreement provides information regarding the payment made by the buyer, including details of the mortgage, if any. It also outlines the property's location and the municipal, district or collector's land record number. The chronology of construction and handing over of the property is included. The agreement must be witnessed by two individuals from the seller's side," added Ahuja, reports ET.

The agreement also includes the payment type, occupancy certificate details and insurance of the building.