A purchase and sales agreement is a document formulated for the acquirement deal or selling of a property or an asset.
Purchase and sales agreement is a significant part of any deal because of its legal and ethical importance.
What is Purchase and Sales Agreement
It is a set of legal documents which traditionally contain all the required information and conditions both the buyer as well as the selling party has agreed upon.
In Pakistan, all the agreements of any immovable property are done on Stamp paper.
You can buy a legal stamp paper agreement from any law firm or estate agency near you.
Why Purchase And Sales Agreement Is Important
- Purchase and sales agreement are important because they contain all the information on the location and size of the property.
- It also contains the actual price of the property upon which both parties have agreed.
- The date of total payment or final payment by the buyer is also written on the agreement. It’s crucial because in case of violation a person holds the right to take legal actions or break the deal.
- The paid amount and the date of transfer are also mentioned in these papers.
- Purchase and sales agreement also contains several conditions regarding the property, price, violations and deadlines.
- In case any of the parties back off from the agreed terms and the deal lands on a dispute, purchase and sales agreement is crucial and required evidence in court inquiry as proof of an ongoing deal.
- A purchase and sales agreement is insurance and can help you have a scam free deal.
There are numerous other reasons this agreement is important. Therefore, you should responsibly formulate this agreement and fill every detail carefully to avoid errors.
You should also never sign any agreement until you read it thoroughly and agree to all the mentioned conditions.
Note: Purchase and sales agreement is not a certificate of ownership of any property. It is only evidence that a deal is taking place.
Things To Look For in A Purchase & Sales Agreement for Real Estate
A standard stamp paper agreement in Pakistan contains the following components
- National Information of seller
Firstly, the CNIC numbers are filled on the top.
- Address and other information
The permanent address of the seller, his name and his father’s name is written next.
- Description of property
Next, the location, address, and dimensions of the property are mentioned in detail. This is important so that in case of dispute the property is identified correctly
- Dispute report
Next, the previous dispute history (if any) of the property is mentioned along concerning the court case. Before you buy any property, the seller is fully responsible for any dispute and its clearance.
- Amount Details
The decided amount of property is to be filled in the agreement next. Make sure the actual amount is written otherwise you might end up in trouble.
- National Information of buyer
Now, the CNIC number of buyers is filled in the agreement.
- Address and other details of the buyer
Permanent address, name and father name is written according to the national identity card of Buyer
- Paid amount
If any advance payment is done by the buyer it should be mentioned in the agreement along with the remaining amount.
- Payment deadlines
Details of final payment and the last date of payment are mentioned in the agreement as well.
All the legal conditions of the deal come pre-written in the agreement but you can customise it as well if there is any unique condition of your deal.
- Time and location of agreement
This is also a very significant detail mentioned in the agreement. The time and location is important information if a dispute forms.
Witnesses are also required before signing a deal. Two witnesses from each side are recommended but a single witness from each side will also do the job. Witnesses also play an evident role in the court.
- Information of witnesses
Information about the witnesses from both sides such as CNIC number, address names and father names etc are written on the agreement. After that, each witness signs the agreement.
After that, Both parties sign the agreement and a copy of the Identity cards of each individual is kept along with the agreement.
This is a standard Purchase and sale agreement pattern in Pakistan.
Read More: How To Be A Real Estate Agent In Pakistan?