LLP Formation
What is an Agreement to Sell?
An agreement to sell is a contract between a seller and a buyer in which the seller agrees to sell property to the buyer at a specified price. It is generally used to sell immovable property such as land or buildings. The Agreement to Sell includes all the terms and conditions agreed upon by both parties.
What is importance of Agreement to Sell?
An Agreement to Sell a contract is important because it legally binds the parties involved in the sale of a property. This contract outlines the terms and conditions of the sale, including the price, date of sale, etc. The agreement protects parties from fraud or misrepresentation by clearly stating all material facts about the property. Further, it can be used as evidence in court if there are any disputes between the parties.
Stamp Duty on an Agreement to Sell
In India, the buyer is liable to pay stamp duty whenever any immovable property is transferred. The amount of stamp duty payable depends on the state in which the property is situated as well as the value of the property.
Similarly, when an agreement to sell is executed, stamp duty is also payable on it. The amount of stamp duty payable on an agreement to sell depends on various factors such as the property’s value, the nature of the transaction (sale/purchase/exchange/lease), etc.
The party who executes the agreement to sell is liable to pay stamp duty. In most cases, the buyer pays stamp duty on an Agreement to Sell.