The recital in the sales agreement is very important. What, in the event of the buyer`s failure to pay the balance within the agreed time, in accordance with the objection, denies, the in advance compensation paid or % is considered a cost of damages. The law is agreed on the terms of the sale contract In the event of termination of a deal for the purchase of a property and for which the agreements have already been registered, the Maharashtra government authorizes a longer period of two years from the date of the contract, for the repayment of stamp duty, under certain conditions. This refund is only permitted if the developer does not hand over ownership of the reserved property and this is mentioned as a reason for cancelling the agreement in the notice of withdrawal. The rules also stipulate that the withdrawal contract must be registered. Serious money is also a part of the amount of the sale consideration. (c) Payment details: Mention the mutually agreed counter-value and when it is due by the buyer to the seller. For example, 2 Lakh paid as token money, 10 Lakh on the date of the sales contract and balance 68 Lakh paid at the time of sale. (d) Timeline/ Validity: Assuming you sign an agreement, please mention the validity of it. Also mention the payment schedule and other terms and conditions (if necessary) of the agreement. In the case of my clients, who is a seller, the buyer does not register the property even after 3 years of signing the sales contract. The reason is that there is no such timetable in the sales contract to conclude the agreement. It would be nice if we could download the deal from here.
Legal Document generatoraffidavit Format 4) it should provide for reimbursement in case of terminated contract (d) Sales contract: A sales contract is the final legal document enforceable. It is legally binding on all parties and grants essential rights to the parties. When a party violates the terms of the sales contract, it is a breach of the contract. In many cases, token money is paid at the time of execution of the sales contract. Depending on the same buyer`s request for Home Loan. As a general rule, the sales contract is executed on stamp securities corresponding to 0.1% of the value of the sales contract. In a few cases, I have advised my clients to register the sales contract similar to the sales file specifically for risky transactions. Each stamp duty paid at the registry office for the registration of the sales contract is adjusted at the time of the execution of the deed of sale. If the buyer makes the deal, the seller has the right to lose the money from the paid token. With respect to this coin of tokens, the purchaser cannot claim an income tax advantage, since it is considered a capital loss under the tax legislation.
However, the amount of the advance or money lost becomes an income from the seller in the year in which the agreement is cancelled. Such serious money is taxed under the head “income from other sources” and not under the head of “capital gains”, although income is collected in terms of investment value.
