Real Estate Agreement Drafting

Real estate agreements are legally binding documents that govern the transfer, sale, development, and management of immovable property in India. The primary categories include Agreement to Sell (also called Sale Agreement — a precursor to the final sale deed, containing agreed terms, token payment acknowledgement, and timeline for completion), Sale Deed (the final conveyance document transferring ownership of property from seller to buyer — must be compulsorily registered under Section 17 of the Registration Act 1908 with payment of applicable stamp duty of 4–7% of the property value depending on the state), Construction Agreement (between landowner and builder for construction of a building or project), Development Agreement (for joint development between landowner and developer with defined profit-sharing or built-up area allocation), and Property Management Agreement (authorizing a manager to manage property on behalf of the owner). Since the enactment of the Real Estate (Regulation and Development) Act 2016 (RERA), builder-buyer agreements for new residential and commercial projects must be registered with the state RERA authority, builders cannot collect more than 10% of the sale consideration before executing a registered agreement, and allotment letters and agreements must use the state RERA authority\'s prescribed format. Stamp duty on property varies significantly across states: Delhi charges 6% (male) / 4% (female), Maharashtra 6–7%, Karnataka 5%, UP 7%, and Tamil Nadu 7%. Registration charges are typically 1% of the property value. Proper title search before any property transaction is essential to uncover encumbrances, mortgages, and prior ownership disputes.