Real Estate Purchase Agreement Template for India

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Key Requirements PROMPT example:

Real Estate Purchase Agreement

"I need a Real Estate Purchase Agreement for buying a commercial property in Mumbai for INR 5 crore, with completion scheduled for March 2025, including specific clauses for existing tenant arrangements and society approval requirements."

Document background
The Real Estate Purchase Agreement is a crucial legal document used in India for documenting and executing property transactions. It serves as the primary instrument for transferring ownership of real estate between parties, whether for residential, commercial, or industrial properties. This agreement must comply with various Indian laws, including the Transfer of Property Act 1882, Registration Act 1908, and the Real Estate (Regulation and Development) Act 2016 (RERA). It typically includes detailed property descriptions, financial terms, completion timelines, and obligations of all parties involved. The document is essential for protecting both buyer and seller interests, ensuring legal compliance, and facilitating smooth property transfer in the Indian real estate market. Its structure accommodates various property types and transaction complexities while maintaining adherence to state-specific regulations and stamp duty requirements.
Suggested Sections

1. Parties: Identification and details of the seller and purchaser, including their legal capacity to contract

2. Background: Context of the transaction, including brief property history and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Comprehensive description of the property including exact measurements, boundaries, and registration details

5. Purchase Price: Details of the total consideration, payment schedule, and mode of payment

6. Payment Terms: Breakdown of payment structure, including earnest money, installments, and final payment

7. Completion: Timeline and process for completing the transaction, including registration requirements

8. Seller's Representations and Warranties: Seller's declarations regarding property title, encumbrances, and legal status

9. Purchaser's Representations and Warranties: Purchaser's declarations regarding financial capacity and compliance with applicable laws

10. Rights and Obligations: Specific rights and obligations of both parties before and after completion

11. Title Documents: Details of property ownership documents and transfer process

12. Possession: Terms and conditions for transferring physical possession of the property

13. Taxes and Expenses: Allocation of various taxes, stamp duty, and registration costs

14. Default and Remedies: Consequences of default by either party and available remedies

15. Governing Law and Jurisdiction: Applicable laws and courts having jurisdiction over disputes

16. Notices: Method and addresses for serving legal notices between parties

Optional Sections

1. RERA Compliance: Required for new construction properties, detailing compliance with RERA regulations

2. Mortgage Details: Include when property is being purchased through bank financing

3. Power of Attorney: Required when any party is acting through an authorized representative

4. Foreign Exchange Compliance: Necessary when purchaser is an NRI or foreign national

5. Society Approval: Required for apartments or properties in housing societies

6. Existing Tenancy: Include when property is currently tenanted

7. Development Rights: Required when property has unused development potential or TDR

8. Joint Ownership Terms: Include when property is being purchased by multiple buyers

9. Agricultural Land Conversion: Required when property involves agricultural land being converted for non-agricultural use

Suggested Schedules

1. Schedule A - Property Description: Detailed property description including exact measurements, boundaries, and fixtures

2. Schedule B - Title Documents: List of all title documents and their chain of custody

3. Schedule C - Payment Schedule: Detailed breakdown of payment terms and milestone-linked payments

4. Schedule D - Encumbrances: List of existing encumbrances, liens, or legal claims if any

5. Schedule E - Permitted Use: Details of permitted usage of property as per local zoning laws

6. Appendix 1 - Property Plans: Architectural plans, site maps, and layout drawings

7. Appendix 2 - Property Photos: Current photographs of the property and its surroundings

8. Appendix 3 - Due Diligence Reports: Legal and technical due diligence reports

9. Appendix 4 - NOCs and Permissions: Copies of various regulatory approvals and no-objection certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Banking & Finance

Legal Services

Property Development

Property Management

Insurance

Urban Planning

Architecture

Facilities Management

Investment & Asset Management

Housing & Urban Development

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Facilities Management

Corporate Services

Risk Management

Operations

Finance

Business Development

Contract Administration

Asset Management

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Legal Counsel

Compliance Officer

Real Estate Developer

Property Valuer

Title Insurance Officer

Contract Manager

Real Estate Investment Manager

Property Registration Officer

Land Acquisition Manager

Corporate Real Estate Manager

Facilities Manager

Real Estate Portfolio Manager

Industries
Transfer of Property Act, 1882: Fundamental law governing transfer of immovable property in India, defining legal requirements for valid property transfers, rights and obligations of buyers and sellers
Registration Act, 1908: Mandates registration of property documents, procedures for registration, and requirements for valid registration of property transactions
Indian Stamp Act, 1899: Governs stamp duty payments on property transactions and documents, including rates and payment procedures
Real Estate (Regulation and Development) Act, 2016 (RERA): Regulates real estate sector, ensures transparency in property transactions, and protects buyer interests, particularly in new developments
Indian Contract Act, 1872: Provides basic framework for all contracts including property transactions, covering aspects like offer, acceptance, consideration, and breach
Foreign Exchange Management Act, 1999: Relevant if any party is an NRI or foreign national, governing foreign investment in Indian real estate
Income Tax Act, 1961: Covers tax implications of property transactions, including capital gains tax and TDS requirements
Urban Land (Ceiling and Regulation) Act, 1976: Regulates urban property holding limits and development in certain states where still applicable
Specific Relief Act, 1963: Provides remedies for breach of contract in property transactions, including specific performance
Consumer Protection Act, 2019: Protects buyer interests and provides remedies against unfair practices in real estate transactions
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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