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Memorandum of Understanding for Sale of Property

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Also called

  • MOU for Sale of Property
  • Property MOU
  • Sale MOU
  • Bayana MOU
  • Bainama se pehle ka MOU
  • Pre-Agreement MOU
  • Term Sheet for Purchase of Property
  • Memorandum of Understanding between Seller and Buyer

When you need it

DON'T use if: (1) agricultural land (buyer restrictions vary by state; an incompetent buyer forfeits the bayana — Cl.11); (2) under-construction/not handed over (needs assignment/nomination + builder NOC, RERA-governed, GST applies); (3) seller is a company/LLP/firm/HUF/trust/society; (4) ancestral/coparcenary property, or a minor/ward's interest; (5) either side non-resident (FEMA governs purchase/repatriation; buyer deducts tax under s.195, holds a TAN first). Cl.2.4 confirms all five.

Read more

Use when price is settled, bayana changes hands today, and the Agreement to Sell is weeks off. Records the property, price, token, off-market period, pre-Agreement duties, and who keeps the money on failure — lighter than an Agreement to Sell: no title, no possession.

Whether you can fill this in here

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You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is the position for this kind of document. The amount is set by the state the property is in and it changes, so the figure for your own state is worth confirming at the sub-registrar’s office before you pay anything.

Stamp duty

An instrument from signing regardless — the question is how much. With no possession, it's Article 5 'agreement/memorandum' (most states: fixed Rs 100–500; central 5(c) is Rs 100). Real risk: characterisation — naming the property/price/timetable can get it assessed as a sale agreement, taxed very differently by state. MAHARASHTRA deems a possession-passing agreement a full conveyance (Expl.I, Art.25, set off later, not s.4). KARNATAKA: small ad valorem without possession (5(e)(i), capped), full rate with it (5(e)(ii)). DELHI: a possession-agreement is a conveyance (s.27A/Art.23), nominal otherwise. UP/TN/Telangana/AP/Gujarat/Rajasthan escalate toward conveyance duty with possession. Clause 15 keeps possession OUT, holding this low everywhere — print Rs 100–500 stamp/e-stamp regardless (SHCIL; Maharashtra: GRAS/e-SBTR/franking). Buy in a party's name, dated on/before signing — never expires (Thiruvengada Pillai, (2008) 4 SCC 530; 6 months is only the refund window). Wrong duty: inadmissible until impounded, penalty up to 10x (s.35).

Registration

Not compulsorily registrable as drafted — s.17 catches documents creating/extinguishing a property right; this MOU does neither (Clause 3.2), and s.54 TPA confirms a sale contract creates no interest. Three exceptions: (1) s.17(1A) — a transfer-for-consideration contract relied on for s.53A part-performance needs registration if executed on/after 24 Sept 2001 (why Clause 15 refuses possession); (2) Maharashtra/Tamil Nadu added their own s.17 entry making an agreement for sale compulsorily registrable regardless of its title — in those two states, register the Agreement to Sell itself instead, and check whether your state has done the same; (3) if registered anyway, s.23 gives 4 months, extendable 4 more under s.25 on a fine up to 10x the registration fee. Unregistered when required: s.49 bars it as evidence — except the proviso admits it in a specific-performance suit.

Notarisation

Not legally required — valid once signed on stamped paper. Cheap, optional notarisation (Notaries Act, 1952) records the signing date if disputed later. Doesn't register the document, cure a stamp shortfall, or enforce an unenforceable term — prioritise stamp paper.

Witnesses

Not legally required — the two-witness rule binds a gift deed (s.123 TPA), a mortgage by deed (s.59) and a will (s.63 Succession Act), not an MOU. Still recommended: bayana disputes come down to one word against another's, and a producible witness beats any clause. Use adults of sound mind, ideally unrelated, with name/address/phone recorded. Both sign every page; the Seller signs across the revenue stamp. At registration, ss.34(1)/(3)(c) require appearance and ID verification.

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Sample preview — placeholder answers, not your data

MEMORANDUM OF UNDERSTANDING FOR SALE OF PROPERTY

Place: Gurugram, Haryana

Date: 1 April 2026

1. The parties

The Seller

  • Name: Rajinder Kumar Malhotra
  • Son / daughter / wife of: Late Shri Om Prakash Malhotra
  • Address: B-42, Sector 15, Noida, Uttar Pradesh 201301
  • PAN: AFZPM1234K
  • Signing as: Sole owner of the Property

The Co-Seller — joint owner, signing together with the Seller

  • Name: Suman Malhotra
  • Son / daughter / wife of: W/o Shri Rajinder Kumar Malhotra
  • Address: B-42, Sector 15, Noida, Uttar Pradesh 201301
  • PAN: BKLPM5678R

Wherever this MOU says "the Seller" it means the Seller and the Co-Seller together. They are bound jointly and severally, and each of them must sign the Agreement to Sell and the Sale Deed.

The Buyer

  • Name: Sneha Iyer
  • Son / daughter / wife of: D/o Shri Krishnan Iyer
  • Address: Flat 703, Rose Wood Apartments, HSR Layout, Bengaluru 560102
  • PAN: AXTPI9012L

The Co-Buyer — buying jointly with the Buyer

  • Name: Arvind Rao
  • Son / daughter / wife of: S/o Shri Mohan Rao
  • Address: Flat 703, Rose Wood Apartments, HSR Layout, Bengaluru 560102
  • PAN: CDEPR3456M

Wherever this MOU says "the Buyer" it means the Buyer and the Co-Buyer together, bound jointly and severally. The Property will be conveyed to both of them, and the Sale Deed will record the share of each.

1.1 The Seller and the Buyer are together called "the parties".

1.2 Each person signing this MOU confirms that they are a major, of sound mind and competent to contract under Section 11 of the Indian Contract Act, 1872.

2. The Property

2.1 This MOU relates to the following property ("the Property"):

Residential Flat No. 1204, Twelfth Floor, Tower C, Ambience Heights, built on Plot No. 27, Sector 82, Gurugram, Haryana 122004, admeasuring 1,450 sq. ft. super area and 1,020 sq. ft. carpet area, together with one covered car parking bearing No. B2-116 and the undivided proportionate share in the land and common areas. Boundaries: North — Flat No. 1203; South — open to sky; East — Tower D driveway; West — common corridor and lift lobby.

2.2 The Seller's title to the Property comes from:

Sale Deed dated 18 August 2016, executed by M/s Ambience Developers Pvt. Ltd. in favour of the Seller and registered as document no. 8842 in Book No. 1, Volume 1204, at the office of the Sub-Registrar, Gurugram (East), followed by mutation in the Seller's name in the records of the Municipal Corporation of Gurugram on 3 October 2016.

2.3 The present state of the Property is: Vacant and locked.

2.4 The parties confirm to each other, and each of them signs this MOU on the strength of the other's confirmation, that:

(a) the Property is not agricultural land;

(b) the Property is complete and, where it was bought from a builder or a development authority, has been handed over, so that the Seller holds a completed and titled interest in it — this sale is not a transfer, assignment or nomination of a builder-buyer agreement in respect of a unit still under construction;

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