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Kagaznama

Agreement to Sell With Possession

At a glance

Price
Free
Stamp duty
Possession decides the stamping.
Registration
Earnest money alone isn't registrable; a s.53A (TPA) transfer contract is, compulsorily, under s.17(1A) Registration Act.
Witnesses
Two witnesses help evidence execution, not replace registration.

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Also called

  • sale agreement with possession
  • bayana agreement with possession
  • agreement for sale with possession

When you need it

For a sale where the buyer takes possession before the sale deed is executed — needing stronger drafting since possession engages s.53A, TPA and s.17(1A), Registration Act (compulsory registration). Fix why possession is delivered, the date, risk/occupation duties, alteration limits, title conditions, completion date, and what happens if conveyance later fails.

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Per s.54, TPA, the contract still doesn't transfer ownership — keys don't make a buyer the owner.

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What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

Possession decides the stamping. PUNJAB: Art.5, entry 5(cc) covers possession-evidencing agreements; practice (unverified) charges the entry-23 conveyance rate — confirm with the tehsil Sub-Registrar. CHANDIGARH: Item 22 is normally 5% of token/earnest money but has no possession entry — the Collector may charge the conveyance rate instead; ask the Sub-Registrar, Sector 17. Either way, s.17(1A) compels registration. Stamp before signing; unstamped is inadmissible until duty+penalty paid (s.35).

Registration

Earnest money alone isn't registrable; a s.53A (TPA) transfer contract is, compulsorily, under s.17(1A) Registration Act. RERA: also s.13.

Notarisation

No substitute for compulsory registration; creates no enforceability alone.

Witnesses

Two witnesses help evidence execution, not replace registration.

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Sample preview — placeholder answers, not your data

AGREEMENT TO SELL WITH POSSESSION

  1. 1. PARTIES AND TRANSACTION

This agreement is made on 1 April 2026 between Harpreet Singh, of House 118, Sector 35-A, Chandigarh, and Aarav Sharma, of House 211, Sector 21, Panchkula.

The property agreed to be sold is House 52, Sector 8, Chandigarh.

Seller capacity: Sole owner. Possession when signed: Seller in possession.

  1. 2. PRICE AND PAYMENT

The total sale consideration is ₹2,50,00,000 (Rupees Two Crore Fifty Lakh only). Earnest/token money is ₹25,00,000 (Rupees Twenty Five Lakh only), leaving balance consideration of ₹2,25,00,000 (Rupees Two Crore Twenty Five Lakh only).

Payment mode: Bank transfer. Payment schedule: ₹25,00,000 on signing; balance on registration after title conditions are satisfied..

Tax withholding: Buyer will deduct and deposit tax where the applicable income-tax provision requires it.

  1. 3. TITLE, DOCUMENTS AND DILIGENCE

Seller relies on the following title/allotment/conveyance record: Sale Deed no. 1842 dated 12 June 2018, Chandigarh.

Diligence position: Buyer will complete title diligence before the stated diligence deadline. Objections should be raised by 2 April 2026.

Encumbrance covenant: Seller will convey free from undisclosed mortgages, charges, liens and third-party rights.

Dues: Seller clears dues attributable to the period before completion.

  1. 4. POSSESSION BEFORE CONVEYANCE

Possession delivery date: 3 April 2026. Character: Possession delivered in part performance of this written contract.

Where a written contract is intended to support the protection of part performance under section 53A of the Transfer of Property Act, 1882, section 17(1A) of the Registration Act, 1908 requires registration; an unregistered post-2001 document has no effect for the purposes of section 53A.

Risk before conveyance: Seller retains ownership risk except damage caused by buyer after possession.

Alterations: Only non-structural work with seller written consent.

Occupation charge: No separate occupation charge; possession is part of the sale arrangement.

  1. 5. OWNERSHIP REMAINS WITH SELLER UNTIL CONVEYANCE

Delivery of possession under this agreement does not itself transfer ownership. The buyer must not represent itself as registered owner, create third-party rights, mortgage the property or part with possession before conveyance except as expressly authorised.

  1. 6. SELLER COVENANTS DURING INTERIM POSSESSION

The seller must not create a new mortgage, sale, lease or adverse third-party right after this agreement except a disclosed financing release arrangement necessary for completion.

  1. 7. FAILURE OF COMPLETION AFTER POSSESSION

If completion fails, possession cannot be recovered by force. The parties must follow the contractual and lawful remedies applicable to refund, specific performance, restitution, use/occupation accounting and possession.

Questions about this document

Does the Agreement to Sell With Possession need stamp paper or stamp duty in Punjab and Chandigarh?

Possession decides the stamping.

See the full position on stamp duty, registration and witnesses
Does the Agreement to Sell With Possession need registration in Punjab and Chandigarh?

Earnest money alone isn't registrable; a s.53A (TPA) transfer contract is, compulsorily, under s.17(1A) Registration Act.

See the full position on stamp duty, registration and witnesses
What does the Agreement to Sell With Possession cost on Kagaznama?

Free.

Documents are free. Kits are free during our launch.

Does the Agreement to Sell With Possession need witnesses?

Two witnesses help evidence execution, not replace registration.

See the full position on stamp duty, registration and witnesses

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