Kagaznama

Term Sheet for a Property Purchase

At a glance

Price
Free
Stamp duty
No conveyance duty for this non-binding record.
Registration
Not compulsory — a contract for sale creates no property interest (TP Act 1882 s.54).
Witnesses
Not legally required for a preliminary record.

Free

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Guided questions, full draft on screen, download in Word.

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Also called

  • property purchase term sheet
  • heads of terms for property sale

When you need it

For when price/major terms are broadly agreed but the parties aren't ready to sign the agreement to sell. A drafting brief: consideration, token, staged payments, title review, finance, dues, brokerage, target dates. State which clauses (if any) bind (TP Act 1882 s.54: a contract for sale creates no interest in the property).

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Reduces re-negotiation.

Whether you can fill this in here

You can fill this in here

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 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

No conveyance duty for this non-binding record. If reworded as a binding sale, transfer, charge or release, duty follows its true character.

Registration

Not compulsory — a contract for sale creates no property interest (TP Act 1882 s.54). Registrable only at the eventual agreement/conveyance stage.

Notarisation

Not required; doesn't replace stamping/registration later.

Witnesses

Not legally required for a preliminary record. Two witnesses are prudent only for a binding term sheet.

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Sample preview — placeholder answers, not your data

TERM SHEET FOR A PROPERTY PURCHASE
1. TRANSACTION

Buyer: Aarav Sharma. Seller: Harpreet Singh. Property: Plot 218, Eco City 1, New Chandigarh, Punjab (Apartment): Residential plot measuring approximately 300 sq yd in Eco City 1..

Term sheet date: 1 April 2026. Valid until: 2 April 2026.

2. PRICE AND PAYMENT

Total proposed sale consideration: ₹2,25,00,000 (Rupees Two Crore Twenty Five Lakh only). Token/earnest: ₹5,00,000 (Rupees Five Lakh only). Payment on agreement: ₹17,50,000 (Rupees Seventeen Lakh Fifty Thousand only). Balance on completion: ₹2,02,50,000 (Rupees Two Crore Two Lakh Fifty Thousand only).

Agreement target: 2 April 2026. Completion/registration target: 3 April 2026.

3. CONDITIONS

Title: Subject to satisfactory advocate title and encumbrance review. Financing: No financing condition. Possession: Vacant possession simultaneously with registration and full payment.

Dues: Seller clears property taxes, society dues and utilities up to completion. Stamp/registration cost: Buyer bears stamp duty and registration fees for conveyance. Brokerage: Each party pays its separately engaged broker.

4. BINDING EFFECT

Only confidentiality, exclusivity and costs if expressly stated. Special conditions for definitive drafting: Seller to provide bank NOC before registration; modular kitchen included.

Section 54 of the Transfer of Property Act, 1882 provides that a contract for sale does not itself create an interest in or charge on immovable property. This term sheet is drafted to capture commercial consensus before the definitive transaction instrument.

PERSONAL DATA NOTICE

This notice is given under the Digital Personal Data Protection Act, 2023. Personal data in this document is collected only to record the negotiated commercial terms and drafting instructions for a proposed property purchase, communicate about that purpose, verify information expressly supplied, and retain an evidentiary record.

The record will be held by Sachdeva Estates and may be shown only to the buyer, seller, authorised broker/agent, advocate, lender, valuer, project promoter, escrow/payment provider or statutory authority directly involved in the stated property transaction or verification.

If the proposed transaction does not proceed, or this document is withdrawn before it takes effect, the personal data will be retained for 90 days from that decision and then erased. If the transaction proceeds, the record will be retained for the term of the transaction plus 12 months and then erased, except for a record that a statute requires to be kept for a longer named period.

A person named in this document may withdraw consent for future consent-based processing, request correction or erasure when the stated purpose has ended, or raise a grievance by writing to support@kagaznama.com. The record-holder should acknowledge and respond within 30 days.

Questions about this document

Does the Term Sheet for a Property Purchase need stamp paper or stamp duty in Punjab and Chandigarh?

No conveyance duty for this non-binding record.

See the full position on stamp duty, registration and witnesses
Does the Term Sheet for a Property Purchase need registration in Punjab and Chandigarh?

Not compulsory — a contract for sale creates no property interest (TP Act 1882 s.54).

See the full position on stamp duty, registration and witnesses
What does the Term Sheet for a Property Purchase cost on Kagaznama?

Free.

Documents are free. Only kits are paid.

Does the Term Sheet for a Property Purchase need witnesses?

Not legally required for a preliminary record.

See the full position on stamp duty, registration and witnesses

Often needed with this document

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Term Sheet for a Property Purchase — format | Kagaznama