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Indemnity Bond by Seller in Favour of Buyer

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Also called

  • Indemnity Bond
  • Seller's Indemnity Bond
  • Indemnity Bond for Property Sale
  • Title Indemnity Bond
  • Indemnity Bond in Favour of Purchaser
  • Indemnity Bond cum Declaration
  • Kshatipurti Bandh Patra
  • Nuksan Bharpai Bond

When you need it

For after a sale, binding the seller if title proves defective, an encumbrance surfaces, a third party claims the property, an old dues bill lands on the buyer, or a statement proves false. Signed at/after registry. Banks require it before a home loan; societies/authorities before mutation.

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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

Its own article — Art.34 (Indemnity Bond), routing to Art.57 (Security Bond); most States use a flat sum instead: Maharashtra Rs 500 (Art.35, since a 2015 amendment from Rs 200), Karnataka Rs 200 (Art.29); Delhi/UP/Haryana/Punjab/Rajasthan/MP/Gujarat/TN commonly Rs 100 — check the current notification. Three traps: the sale deed's duty does NOT cover this bond, separately stamped (an argument exists under s.4, Indian Stamp Act, that this is a nominal subsidiary instrument, but pay the full Art.34/35 amount — safer); in an ad valorem-Security-Bond State, naming a maximum figure can attract MORE duty than an uncapped bond; and stamp paper doesn't expire after six months (Thiruvengada Pillai v. Navaneethammal (2008) 4 SCC 530). e-stamp via SHCIL (most States, Chandigarh) or Maharashtra's GRAS/e-SBTR, or Telangana/AP's own IGRS challan. Unstamped, it's inadmissible (s.35), curable only by impounding plus up to 10x penalty.

Registration

Not compulsorily registrable — a personal promise to pay creates no interest in property, so s.17(1)(b) isn't attracted, no four-month clock applies. Optional under s.18 — worth it on a high-value bond, fixing the date and removing signature disputes. Cheaper alternative: recite the bond in the Sale Deed and annex a copy. Watch one thing: if a clause charges the seller's OTHER property as security, the bond becomes an interest-creating instrument that MUST be registered (s.17(1)(b), within four months, s.23/s.25), or s.49 makes it inadmissible — paying for security you don't have. Clause 14.3 deliberately says no charge is created.

Notarisation

Not required by law — valid once signed on stamped paper. Optional but near-universal, often insisted on by banks/societies/authorities — budget for it. Gives an independent notary-register record of date and identity; does NOT register the bond, cure a stamp shortfall, or make the statements sworn testimony. Many files instead use an 'affidavit-cum-indemnity bond' — sworn, adding a criminal sanction for false statements (Bharatiya Nyaya Sanhita 2023 ss.227/229, replacing IPC ss.191/193 from 1 July 2024). This template is a deed, not an affidavit; for the criminal sanction too, add a verification clause and swear it before a notary, rather than simply retitling.

Witnesses

Not legally required — the attestation rules (TP Act ss.59/123; Succession Act s.63) don't reach an indemnity bond. Still recommended: produced years later, often when the seller wants to deny signing, and a witness is what Evidence Act s.68 (Bharatiya Sakshya Adhiniyam 2023) rewards. Use adults unrelated to the seller, traceable in ten years. Every Seller signs each page; joint owners must ALL sign — one of three binds only that one.

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Sample preview — placeholder answers, not your data

INDEMNITY BOND

Given by the Seller in favour of the Buyer, against defects in title, undisclosed encumbrances, third-party claims, unpaid dues and misrepresentation

Place: Gurugram, Haryana

Date: 1 April 2026

1. Who is giving this Bond

1.1 This Indemnity Bond is executed by:

Seller 1

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

Seller 2

  • Name: Sunita Malhotra
  • Address: B-42, Sector 15, Noida, Uttar Pradesh 201301

Seller 3

  • Name: Arun Malhotra
  • Address: 14, Rajpur Road, Dehradun, Uttarakhand 248001

1.2 In this Bond, "the Seller" means the person named above and, where more than one person is named, all of them together and each of them separately. Their liability is joint and several: the Buyer may recover the whole of any amount due from any one of them, and it is then for the Sellers to settle the shares between themselves.

1.3 The Seller's status is: Yes — the Seller is a Non-Resident Indian, OCI cardholder or foreign citizen. Clause 6.15 and Clause 7.8 set out what follows from that.

2. Who this Bond is given to

2.1 This Bond is given in favour of:

Buyer 1

  • Name: Ananya Iyer
  • Son / daughter / wife of: Shri Ramesh Iyer
  • Address: Flat 802, Tower C, Emerald Heights, Sector 62, Gurugram, Haryana 122011

Buyer 2

  • Name: Karthik Iyer
  • Address: Flat 802, Tower C, Emerald Heights, Sector 62, Gurugram, Haryana 122011

2.2 In this Bond, "the Buyer" means the person named above and, where more than one person is named, all of them together and each of them separately. Any one Buyer may make a claim under this Bond for the whole of the loss.

2.3 The benefit of this Bond runs with the Property. Anyone in whom the Property later vests through the Buyer — the Buyer's legal heirs, successors, and any person who buys it from the Buyer — may enforce this Bond against the Seller in the same way the Buyer could. This follows the pattern of Section 55(2) of the Transfer of Property Act, 1882, under which the seller's covenant for title is annexed to the interest transferred and may be enforced by every person in whom that interest afterwards vests.

2.4 The Buyer has funded the purchase in whole or in part through HDFC Bank Limited, Gurugram Sector 44 branch ("the Lender"), and the Property is or will be mortgaged to the Lender. The Lender may enforce this Bond against the Seller to the extent of the Lender's own loss, as if the Lender were the Buyer. Nothing in this clause reduces what the Buyer may claim.

3. The Property

3.1 This Bond relates to the following immovable property ("the Property"):

Residential Flat No. 802, Eighth Floor, Tower C, Emerald Heights, built on Plot No. 17, Sector 62, Gurugram, Haryana, admeasuring 1,450 sq ft super area and 1,050 sq ft carpet area, together with one covered car parking space bearing No. C-118 in the basement, and undivided proportionate interest in the land beneath, bounded on the North by Flat 801, South by open corridor, East by external wall facing the park, West by the lift lobby.

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