Agreement for Sale of Mortgaged House

AGREEMENT FOR SALE OF MORTGAGED HOUSE

THIS AGREEMENT made at ____________ on this ______ day of ____________, 20____,

Between A, son of ____________, resident of ____________ (hereinafter called the "Vendor") of the FIRST PART; B, son of ____________, resident of ____________ (hereinafter called the "Purchaser") of the SECOND PART; and C, son of ____________, resident of ____________ (hereinafter called the "Mortgagee") of the THIRD PART.

WHEREAS the Vendor is absolutely seized and possessed of, or well and sufficiently entitled to, the house more fully described in the Schedule hereunder written, hereinafter referred to as the "said house";

AND WHEREAS the said house is mortgaged with Shri ____________ for the sum of Rs. ____________, pursuant to a deed of mortgage executed between the Vendor of the one part and Shri ____________ of the other part; and a sum of Rs. ____________ is due from the Vendor to the said Mortgagee;

AND WHEREAS the Vendor has agreed to sell and the Purchaser has agreed to purchase the said house on the terms and conditions mentioned below:

IT IS HEREBY AGREED BETWEEN THE PARTIES AS FOLLOWS:

(1) The Vendor will sell and the Purchaser will purchase all that house No. ____________, Road ____________, more particularly described in the Schedule hereunder written, for a sum of Rs. ____________, out of which the Purchaser has paid Rs. ____________ to the Vendor as earnest money (the receipt of which sum the Vendor hereby acknowledges); and out of the balance price to be paid by the Purchaser, he shall pay Rs. ____________ on or before the date of ____________, and the remaining sum of Rs. ____________ will be paid to the Vendor at the time of registration of the sale deed.

(2) The Mortgagee's advocate shall deliver the documents of title of the said house to the Purchaser's advocate, against his accountable receipt, within ______ days from the date of this agreement, for investigation of title.

It is hereby declared that delivering the documents of title by the Mortgagee to the Purchaser's advocate will not affect the mortgage of the Mortgagee, and the mortgage on the said house will continue until the full payment of the mortgage money is made to the Mortgagee by the Vendor or the Purchaser.

(3) The said house will be purchased by the Purchaser without any encumbrance, easements, restrictions and rights affecting the same.

(4) The purchase shall be completed within a period of ______ months from the date of this Agreement. The Purchaser shall send the draft conveyance deed to the Vendor a fortnight prior to the date of the intended execution; and after approval thereof by the Vendor, the Purchaser shall get the same ready for execution by the Vendor. All expenses for preparation of the conveyance deed, cost of stamp and registration charges, and all other out-of-pocket expenses shall be borne by the Purchaser.

(5) The Mortgagee shall discharge the mortgage on the back of the mortgage deed on payment of Rs. ____________ by the Purchaser, and return the mortgage deed duly discharged to the Purchaser. It is hereby agreed and confirmed that the sale deed shall not be executed unless the mortgage on the said house is discharged by the Mortgagee.

(6) If the Vendor's title to the said house is not approved by the Purchaser's advocate, the Vendor shall refund the earnest money to the Purchaser within ______ days from the date of intimation by the Purchaser about the non-approval of the title by his advocate. If the Vendor does not refund the earnest money within ______ days, he shall be liable to pay interest at the rate of ______% per month up to the date of payment of the earnest money. In the case of non-approval of title by the Purchaser's advocate, the Purchaser's advocate shall return the documents of title of the said house to the Mortgagee's advocate.

(7) If the Purchaser commits breach of this agreement, the Vendor shall forfeit the earnest money paid by the Purchaser, and the Purchaser shall also be liable to pay to the Vendor the deficiency and expenses of resale of the said house.

(8) If the Vendor commits breach of the agreement, he shall refund the earnest money to the Purchaser, and he shall also be liable to pay Rs. ____________ to the Purchaser by way of liquidated damages.

(9) The Vendor shall execute the conveyance deed in favour of the Purchaser or his nominee, as the Purchaser may require.

(10) The Vendor shall hand over the vacant possession of the said house, and the documents of title in respect thereof, to the Purchaser before registration of the conveyance deed.

(11) The Vendor shall, at his own cost, obtain any tax clearance certificate and any other permission or no-objection from the Government, Municipal or statutory authority required for the completion of the conveyance deed.

(12) Notwithstanding anything contained in clauses 7 and 8 hereof, the parties will have the right to specific performance of this Agreement.

The Schedule above referred to:

IN WITNESS WHEREOF the parties have set their hands to this Agreement on the date and year first hereinabove written.

Signed and delivered by Shri A, the within-named Vendor
Signed and delivered by Shri B, the within-named Purchaser
Signed and delivered by Shri C, the within-named Mortgagee

WITNESSES:
1.
2.