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Model sale agreement of house when there is uncleared loan of bank

SALE AGREEMENT THIS SALE AGREEMENT made at ___________, this 19th day of July, 2011, Between (1) Mr................., son of Late ..........., Aged ........ Years (2) Mrs ............................ w/o Mr. ..................., Aged ......... Years Both resident of No. .........., ................... cross, .............. Block, ......................, hereinafter called "the Vendors" (which expression shall unless repugnant to the context or meaning thereof mean and include their respective heirs, executors, administrators and assigns) of the FIRST PART;

Mr ..................... s/o Late ....................... aged ...............years, Resident of ................................................., hereinafter called as "the purchaser" (which expression shall unless repugnant to the context or meaning thereof mean and include his heirs, executors, administrators and assigns) of the SECOND PART.

WHEREAS the Vendors are absolute owners having possession of the house property which is more particularly described in the Schedule hereunder written (which property shall hereinafter for brevity's sake be referred to as 'the property'). AND WHEREAS the said property was owned and possessed by the vendors was got through registered sale deed dated ............... with Document number ................ before Sub-registrar .................. stored vide C.D. No. ............... The vendor got the title to the property from previous owner and the same valid flow of title is well recognised by Vendor’s Bankers legal advisors and as the only owners having no co-ownership rights with anyone is professing to sell the property for reasons of clearing Banking Loan and other family necessities of the vendors. The said property was purchased by the vendors out of their self-earned money.

AND WHEREAS the purchasers herein have approached the Vendors through assuring party with an intention to purchase the said property from the Vendors and pursuant to the negotiations by and between the parties hereto and subject to the necessary documentations for registration to be supplied by the vendors and have agreed to complete the sale transaction of the said property more particularly described in the Schedule hereunder written for the consideration and upon the terms and conditions hereinafter appearing:

AND WHEREAS the said property is being mortgaged by the vendors with _________________ Bank by deposit of all title deeds for a loan of Rs ____________________ (Rupees______), the upto date arrears is approximately as follows Rs ________________ as on dt._______________. The loan amount hereby mentioned is the only loan existed upon the vendor’s property both personally and upon mortgage loan. There is no other liability or any other proceedings of recovery or claim over the vendor is the total assurance from the side of vendor.

AND WHEREAS the purchaser on having trusted the assurances came forward upon the following terms and conditions to take over the loan through his banker ________________________________, by way of transfer of loan amount out of sale consideration. The necessary formalities need to be completed within the stipulated period for the sake of completing the sale transaction as early as possible.

NOW THESE PRESENTS WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

(1) The Vendors do hereby agree to sell the said property for a sale consideration of Rs .............................. Out of the sale proceeds Vendors assures to claim and receive only the amount balance after clearance of loan arrears within the stipulated period that will be made through purchaser’s bank.

(2) In consideration of the Vendors having agreed to sell the property for such consideration, the purchaser agree to pay to the Vendors a sum of Rs. .................................... as advance towards the sale consideration, in the following manner: (a) Rs......................... through Cash before the witnesses to this agreement (the payment and receipt whereof is this agreement itself and the Vendors both hereby admit, acknowledge, the receipt of the said amount).

(3) The vendors hereby authorise purchasers with No objection to get transferred the loan arrears to their Bank by way of loan take over and the vendors hereby authorise to purchaser to communicate with their bank for the same purposes.

(4) The vendors here by authorise purchaser’s bankers to get all the original documents transferred to their custody and do indemnify whosoever if the vendor fails to execute sale deed after receipt of full balance sale consideration as said earlier.

(5) The Vendor hereby assures to give vacant possession of the property at the time of registration of sale deed and promises not to induct anyone in the intervening period either as tenant or in any other mode.

(6) The vendor hereby assures that they won’t further create any charge over the property and this agreement is the last and final charge with such conditions as herein mentioned.

(7) The vendors hereby assure to provide any necessary documentation formalities if the Banker of the purchaser seeks to honour this sale transaction, wthout any further liability after sale completion.

(8) It is agreed and undertaken by the Vendors that they shall at their own costs and expenses persuade the matter regarding requirement of NOC’s and other documents necessary for having valid registration as required under the various acts.

(9) The Vendors hereby agree that the said sale agreement shall not be, under any circumstances, revoked by the Vendors as long as these presents subsist and remain binding upon the parties hereto. If the sale agreement is revoked by the Vendors and delay is caused in registering the property hereby agreed the consequences arising thereof shall be at the costs of the Vendors alone.

(10) It is agreed and undertaken by the purchasers that they shall at their own costs and expenses, get the sale deed registered by paying the stamp duty on the prevailing sub-registrar market rates as per procedure, any variation from the actual agreed amount will not be claimed by both the parties.

(11) The Vendors shall render all assistance, co-operation and sign and execute or cause to be signed and executed all applications, plans, authorities and other writings as may be necessary or required to enable the registration of the said property and to obtain nill arrears certificate from BBMP.

(12) The vendors assure that the property is not under any acquisition proceeding and no acquisition notice is received by the vendors. The vendors assure that the property is not the target of any encroachment of public land and there is no notice to such effect.

(13) The Vendors shall make out a clear and marketable title to the said property, agreed to be sold and ultimately to be conveyed free from reasonable doubts and all encumbrances and shall at their own costs and expenses got cleared all outstanding dues and clear all defects in the title and all encumbrances and claims on or to the said property including all claims by way of sale, exchange, mortgage, gifts, trust, hereditaments, possession, easement, lease, lien or otherwise.

(14) It is agreed and understood that the Vendors shall not in any way obstruct the officers of the purchaser bank from visiting and inspecting the said property for their assessment, and shall not do any act, matter or thing whereby the purchasers will be prevented from carrying out the agreed part as envisaged under this Agreement.

(15) The Vendors hereby declare that: (a) The said property is equivalent to freehold and is not held under any agreement, except that of the bank as mentioned earlier; (b) There are no outstanding encumbrances, mortgages, liens (notice for acquisitions, requisitions or set back) easements, rights of tenants or outstanding interest or claim by any parties other than the Vendors nor is the said property subject-matter of any pending suit or attachment either before or after judgement. No notification is issued under any Ordinance, Act, statute/rules or regulations affecting the said property; except that of bank arrers as mentioned earlier; (c) The Vendors further declare that neither the Vendors nor his/their predecessors-in-title nor any body claiming from/or under them or any of them have or have granted any right of way or easement or other rights to any person over the said property;

(16) It is agreed that the Vendors and all other necessary parties shall execute the Deed of Conveyance and/or all other writings in favour of such person/s as the purchasers or their bankers may direct . The purchasers shall also join as a Confirming Party to the said Conveyance.

(17) The Vendors will ensure that under their supervision at the time when the Bankers of the purchasers require shall allow to enter upon the said property described in the Schedule hereunder written, the said house is absolutely vacant and nobody is in occupation of the same.

(18) The Vendors hereby agree and confirm that the purchasers shall be entitled to transfer the benefit and burden of this Agreement subject to the terms and conditions mentioned herein either as a whole or in part to one or more parties and that the Vendors shall have no objection to the same and the terms and conditions of this agreement shall remain binding over such transferees.

(19) The Vendors agree to pay Municipal, betterment charges if any, water charges, electricity charges, fines and penalties arising as a result of use of the said property till date of registration of sale deed.

(20) The Vendors declare that the property hereby agreed to be sold and conveyed are not subject to the easement or rights in the nature of easement.

(21) The Vendors hereby declare that no notice from Government or any other body or authority or under the Municipal Corporation Act or BDA Act, Land Acquisition Act or Town Planning Act, The Defence of India Act or under any other legislative enactments, KIADB Act, Government Ordinances, Order or Notification (including any notice for acquisition or requisition of property or any part thereof) has been received by or served upon them or any other person/s interested therein nor is the said property or any part thereof included in any intended or publishes scheme of improvement of the Municipal, Government body or Public Body or authority.

(22) The Vendors hereby agree to pay and discharge all taxes and outgoings in respect of the said property prior to the sale on which the purchasers are to be put in possession of the said property.

(23) The Purchasers shall from the date they are put in possession of the property be entitled to receive the rents and profits and liable to pay all outgoings (including Municipal taxes, land revenue, charges for consumption).

(24) The Vendors shall pay all outgoings including the municipal and Collector's bills and charges in respect of the said property hereby agreed to be sold and conveyed previous to the date of handing over of the possession to the purchasers. The purchasers agree and undertake to bear all the charges in respect of the said property and all taxes, Municipal, Collector's bills, etc. after the date of taking over of the possession.

(25) The Vendors declare that the property in question is self acquired property. However, there is no minor interested in the property and hence the question of obtaining the sanction from the competent Court relating to minor's interest in the property does not arise.

(26) If the sale be not completed due to any wilful default on the part of the Vendors, the purchasers shall be entitled to specific performance of this Agreement, at the cost of vendors including any deficit in stamp expenses and other over heads.

(27) This agreement shall not be treated as a partnership between the parties.

(28) The purchaser shall keep indemnified the Vendors from and against all actions, claims, demands, proceedings, fines, penalties and all costs, expenses and damages incurred or suffered by the Vendors if there is any willfull default of purchaser in honouring this agreement.

(29) Save and except as hereinbefore otherwise provided, all costs, charges and expenses of the Vendors and of the purchasers and incidental upto this Agreement including stamp duty of agreement is mutually agreed to be borne and also paid by the Vendors alone. The fines and penalties payable to the Collector or transfer of the property not incurred by reason of any delay in lodging the Deed of Conveyance by the Vendors shall be paid by the Vendors alone.

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands and seals the day and year first hereinabove written.

The Schedule above referred to

Agreement to demolish the structure, clear the site and to construct new building

THIS AGREEMENT made at.............. on this............ day of................. 2011, between .......................... S/o Mr........................ R/o........... (Hereinafter called 'the Employer') of the ONE PART and ................................. Constructions, a partnership firm, carrying on the business of builders and contractors, having its office at................................................ (Hereinafter called 'the builders') of the OTHER PART

WHEREAS the employer is absolutely seized or otherwise well and sufficiently entitled to the old bungalow being (Detailed address)............ with an area of........ Sq. mts which bungalow is more particularly described in " First Schedule hereunder written, and is hereinafter referred to as 'the said bungalow.

AND WHEREAS the said bungalow has become very old and the employer intends to dismantle the said bungalow and construct a new bungalow on the said plot of land.

AND WHEREAS the builders are willing to undertake the said job of dismantling and construction of the new bungalow in accordance with the plan and specifications set out in the Second Schedule hereunder written.

NOW IT IS AGREED BETWEEN THE PARTIES AS UNDER:

1. The builders agree to undertake the work of dismantling the said bungalow and to construct a new bungalow in accordance with the plan, description and specifications set out in the Second Schedule hereunder written (hereinafter referred to as "the said works') in consideration of a sum of Rs.......... to be paid by the employer to the builders in the manner hereinafter provided.

2. The builders will dismantle the said bungalow, clear the site and construct the bungalow with the best available materials and in workmanship in accordance with the directions of the employer's architect (hereinafter referred to as the architect) in accordance with the plan, description, and specifications set out in the Second Schedule hereunder written. However, the employer may require the builders to alter the drawings and the nature of the work by adding or omitting any items of work. Such alterations shall be paid at such rates as may be mutually agreed upon.

3. The builders shall take away the building material of the old bungalow and shall clear and level the plot of land.

4. While demolishing and constructing the bungalow, the builders shall carry out the said Works in accordance with the law, rules and bye laws for the time being in force affecting the said works and shall give the necessary notices to and obtain the requisite sanction of the concerned local authorities in respect of the said works and shall comply with building and other regulations of such authority.

5. The builders shall complete the said works on or before the expiry of...... months from the date of execution of these presents in accordance with the plans duly approved by the municipal corporation of........ and descriptions and specifications and other terms and conditions as are set out in Third Schedule hereunder written: Provided however the architect, with the previous consent of the employer, may extend the time for completion of the said works, it in his opinion the works are delayed (a) by force majored; or (b) by reason of any exceptionally inclement weather; or (c) by reason of civil commotion, local combination of workman or strike or lock-out affecting any of building trades; or (d) in consequence of the builders not having received necessary instructions from the architect in due time; or (e) from other causes which the architect may certify as beyond the control of the builders.

6. The employer shall pay to the builders, weekly during the progress of the work, such sum as may be sufficient to defray the expenses for materials and other out of pocket expenses, as certified by the architect.

7. The builders hereby indemnify and keep the employer saved, defended and harmless against any claims, demands, actions or proceedings that may be suffered by the employer by reason of anything done by the builders as a result of the builders committing breach of any rules and regulations or causing damage to any adjoining property or any individual or otherwise howsoever in dismantling the property or constructing the new bungalow on the said property or any letters, applications and writings addressed by the builders pursuant to such authority as also for the costs, charges and expenses which may be incurred or for which the employer may become liable in that behalf.

8. The builders shall be responsible for injury to persons, animals or things and for all structural damages to the property which may arise from the operation or neglect of the builders or their employees, nominees, sub-contractors or their employees, whether such injury or damage arises from carelessness, accident or any other cause whatsoever in any way connected with the carrying out of construction pursuant to these presents. This clause shall be deemed to include, inter alia, any damage to buildings whether immediately adjacent or otherwise, and any damage to roads, streets, foot-paths, bridges or ways as well as all damages caused to the buildings and works forming the subject of this contract by frost, rain, wind or other inclemency of weather.

9. The builders shall, within one week from the date of commencement of the works, insure the works and keep them insured until the buildings complete in all respects and fit for occupation are handed over to the employer, against loss or damage by fire, earthquake, flood, cyclone, etc. with an insurer, in the joint names of the employer and the builders for the full amount of the contract and for any further sum, if called upon to do so by the employer. The premium of such further sum shall be reimbursed to the builders by the employer. The builders shall deposit the insurance policy and receipts for the premium with the employer within fourteen days from the commencement of the works, unless otherwise instructed by the employer. In case the builders fail to insure as provided above, the employer may so insure the works and may deduct the premium paid from any moneys due or which may become due to the builders without prejudice to the other rights of the employer in respect of such default. In case it becomes necessary to suspend the works due to any of the risks covered under the policy, the builders shall, as soon as the claim under the policy is settled, or the work reinstated should proceed with all due diligence with the completion of the works in the same manner as though the risk had not occurred and in all respects under the same conditions of contract. The builders in case of rebuilding or reinstatement after the risk, shall be entitled to such extension of time for completion of the works, as the architects shall deem fit.

10. If the builders (i) have abandoned the contract; or (ii) have failed to dismantle the old bungalow and remove, clean and level the plot of land; or (iii) have failed to commence the works or have without any lawful excuse under these presents suspended the progress of the works for fourteen days after receiving from the architect notice to proceed; or (iv) have failed to proceed with the works with such due diligence and failed to make such due progress as would enable the works to be completed within the time agreed upon; or (v) have failed to remove materials from the site or pull down and replace work for seven days after receiving from the architect written notice that the said materials or work were condemned and rejected by the architect under these presents; or have neglected or failed persistently to observe and perform all or any of the acts, matters or things by this contract to be observed and performed by the builders for seven days after written notice shall have been given to the builders requiring them to observe or perform the same; then and in any of the said cases the employer may, after giving seven days notice in writing to the builders, terminate the contract, on such termination of the contract the employer by his agents or servants may enter upon and take possession of the works and all plants, tools, scaffoldings, sheds, machinery and other utensils and materials lying upon the premises or the adjoining lands or roads, and use the same as his own property or and employ the same by means of its own servants and workmen in carrying on and completing the works or by employing any other contractor or other person or persons to complete the works, and the builders shall not in any way interrupt or do any act, matter or things to prevent or hinder such other contractor or other person or persons employed for completing and finishing the works or using the materials and plant for the works. When the works shall be completed or as soon thereafter as convenient the architect shall give a notice in writing to the builders to remove their surplus materials and plant, and should the builders fail to do so within a period of fourteen days after receipt thereof by them, the employer may sell the same by public auction, and give credit to the builders for the net amount realized. The architect shall ascertain and certify what s a be due or payable to or by the employer for the value of the said materials, plants are so taken possession of by the employer and the amount which shall be so certified shall thereupon be paid by the employer to the builders or by the builders to the employer, as the case may be and the architect's certificate shall be final and binding on both the parties.

11. If the builders fail to complete the said works within the period or extended period, the builders shall at the option of the employer, but without prejudice to the other rights under law of the employer and the other provisions herein shall pay by way of liquidated damages a sum of Rs.......... per day for the entire period of delay and the employer will be entitled to deduct such damages from the amount becoming due and payable to the builders under this Agreement.

12. The builders shall not assign this contract to any other builder or contractor, without written consent of the employer.

13. The builders hereby agree and undertake to rectify the defects pointed out to them during the period of 12 calendar months from the date of handing over the said buildings to the employer. If the builders fail to rectify the defects pointed out or decline to cure such defects as pointed out by the employer within fifteen days from the date of reporting to the builders, the employer may get such defects cured by such other contractors as it may deem fit at the entire cost and risk of the builders.

14. The builders shall deliver all the plans, detailed drawings and specifications to the employer after the completion of the said works or otherwise terminated under these presents.

15. All disputes arising between the employer and the builders under this Agreement during the continuance of this contract or on its completion or on abandonment thereof shall be referred to arbitration to a single arbitration appointed by both the parties. It both the parties do not agree upon the appointment of single arbitrator, each party shall nominate his own arbitrator who shall before entering on the reference appoint an umpire. The arbitrator or arbitrators as the case may be shall deliver the award within a period of six months from the date of entering on the reference. The award of the arbitrator or arbitrators shall be final and binding on the parties. The parties agree that arbitration under this clause shall be a condition precedent to any right of action under the contract.

IN WITNESS WHEREOF the employer and builders have signed these presents, the day and year first hereinabove written.

KANNADA SALE DEED FOR REFERENCE

Kannada Sale Deed in a Specific Case for Guidance Only

KARNATAKA LAND LAWS

CASE LAW ON LAND LAWS