Agreement of sale: legal implications

POSTED BY Anand Iyer ON January 17, 2013 9:29 am ONE COMMENT

I’m interested in buying a house and have zeroed in on a property. I need the agreement of sale before I apply for a bank loan.

Now, what happens if I sign the agreement and the bank loan runs into trouble? Will I be responsible to pay up for the house in taht case for the amount mentioned in the agreement?

What legal implications does the agreement have?

One reply on this article “Agreement of sale: legal implications”

  1. Dear Anand, to get an agreement sell, you w’d have to pay an advance amount to the seller & if you are unable to complete the final transactions within the given time frame, this advance can be forfeited by the seller. For your safety, you may insert a clause in the agreement that in case, property documents are not complete to be eligible for a bank loan, seller w’d has to return your full advance amount with out deducting any penalty. In this case, onus lies on the seller to provide property related all documents & in case loan is denied due to property papers, you can claim back your advance money.

    Thanks

    Ashal

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