Document background
The Memorandum of Contract for Sale and Purchase of Property is a crucial document in Indian real estate transactions, serving as the preliminary agreement that precedes the final sale deed. This document is typically used when parties have agreed on the essential terms of a property transaction but need time before the final transfer, such as for due diligence, financing arrangements, or regulatory approvals. It captures the parties' intentions, property details, financial terms, and completion timeline, creating legally binding obligations under Indian contract and property law. The document must be drafted in compliance with state-specific requirements and typically requires registration under the Registration Act 1908. It serves as a vital tool for both residential and commercial property transactions, providing security to both parties during the interim period between agreement and final sale.
