Sathe khat is the contract between buyer and seller of the land in which buyer of the property agrees to buy the property at specific price in future date.
This is a contract duly executed between the ÒVendorÓ (Seller) and the ÒPurchaserÓ, and legally binding on both the parties. Generally this agreement-to-sale consists following details: –
1. Names, address, age and nationality of the vendor & purchaser.
2. History of ownership of seller with sequence of documents, and development rights acquired by the developer from the original owner/s; in case developer is seller.
3. Description of property i.e. Survey No., Plot No., C.T.S. No. etc. and Area of property.
4. The terms, conditions and convenants agreed by and between the vendor & purchaser according to which the property is agreed to be sold or purchased.
5. Specifications of constructions and list of amenities and facilities proposed to be provided by the developer/owner, for purchase of built-up properties.
6. Total purchase value/consideration & schedule of payment according to which the purchase price and other charges are to be paid.
7. Annexure documents of ownership by way of 7/12 extract / property register card, copy of approved plan / floor plan etc.
8. Title-Search-Report & Clearance certificate from the advocate / solicitor who has investigated the title of the property, for minimum period of 60 years.
9. Schedule of property giving description, location & area of the property agreed to be purchased/sold.
It is mandatory to register the agreement to sale with respective Registrar of assurances within 4 months by paying adequate stamp duty & registration charges. Please note that unregistered agreements/deeds are not considered by the financing institutions and the Court of Law in case of litigation. An agreement to sell is an important document in the process of sale or purchase of property. The agreement contains conditions that the parties agree upon. It binds them to these terms and conditions. As against this, a sale deed is a written document executed by a buyer and seller. It gives details of how the seller got the property, at what price he is selling the property, assurance to the purchaser that the property is free from any encumbrance, indemnity clauses etc. A sale deed is executed by both the seller and purchaser, and is registered with the office of the registrar. It is executed subsequent to the agreement to sell, and is based on the terms and conditions contained in and agreed upon in the agreement to sell. It is signed and executed by the seller and buyer on a nonjudicial stamp paper. As such, it has legal value and can be produced as evidence. An agreement to sell is the base document on which a conveyance deed is drafted. Every document of transfer of property through sale will be preceded by an agreement to sell. Usually, an agreement to sell is in writing. Although an agreement to sell may be oral, because of attendant risks, they are always made in writing.
Reference: Laws Applicable: Transfer of property Act