Document background
The MoU for Sale of Property is a crucial preliminary document in Indian real estate transactions, typically used before the execution of a final sale deed. This document becomes relevant when parties have reached an initial agreement on key terms but need time for due diligence, document verification, and arrangement of finances. Under Indian law, while not all provisions of an MoU are legally binding, certain clauses such as confidentiality and exclusivity can be enforced. The document typically includes property details, purchase price, payment schedule, due diligence requirements, and timelines for completion. It serves as a roadmap for the transaction while protecting both parties' interests during the interim period between initial agreement and final sale. The MoU must comply with Indian contract law principles and consider state-specific property regulations and stamp duty requirements.
