In India, what are the sales agreement execution fees to be paid for property?

 The fee is zero if you execute on your own + stamp duty

It's very simple and easy to execute a property sale agreement without paying any processing fee. Just follow the below step-by-step procedure to execute your sale agreement.

Step 1: Prepare a draft agreement in word format. A draft looks like the below images

Step 2: Share the draft with seller, buyer, advocate, and your bank if you opting for home loan. The intention of sharing is to cross-verify corrections. Preferably share through email to record communication.

Step 3: If you are opting for home loan, it's important to frank a sale agreement. Your bank should able to say the franking cost.

Generally, the franking cost is 0.1% of selling price. For example the selling price is Rs. 83,00,000/. The franking cost is Rs. 83,00,000X 0.1% = 8,300/-

But for some cases, if you have good rapport with your bank, your bank may advise you to use only Rs. 200 e-stamp paper instead franking of 0.1% of selling price.

(Many people often confuse with franking and e-stamp. Franking and e-stamp are the two different modes of paying stamp duty to government. It is advisable to use e-stamp if your stamp duty is less than Rs. 500 or use franking mode if your stamp duty is more than Rs. 500.

Step 4: As per your bank, if your stamp duty is less than Rs. 500, get e-stamp paper from your nearest co-operative bank, court, or sub-registrar office.

Following are the details requires to buy e-stamp paper.

• Seller Name
• Buyer name
• Title of document (Sale agreement / Agreement of sale / Agreement to sell)
• Stamp duty value (For Example Rs. 200 or 500)
• Your contact number (through your contact number not shown on stamp paper, it requires for vendor reference)

The cost of e-stamp paper: stamp duty + Rs. 15 vendor processing fee. (For example: the stamp duty is Rs. 200 + 15 = 215/-). The total cost of e-stamp paper is Rs. 215/-

An e-stamp paper looks like the below image.

As per your bank, If your stamp duty is more than Rs. 500/-, prefer to choose franking mode. The franking cost is paid in the mode of DD

Say for example : The selling price of a property is Rs. 83,00,000. Bank told us to frank 0.1% of selling price, hence the franking cost is Rs. 83,00,000 X 0.1% = 8,300.

Take a DD in the value of Rs. 8,300/- and in the name of sub-registrar. Bank charge around Rs. 250 to process DD. Below DD image for your reference.

Step 5: Print the drafted sale agreement on the normal A4 size paper. Seller and buyer should sign all pages of sale agreement.

Two witnesses, one from seller and another one from buyer should sign on the last page of sale agreement. Must include witness name, address, and contact number.

Step 6: Carry a signed sale agreement and DD to sub-registrar office for franking.

In sub-registrar office, a token number will be allotted, accordingly wait for your turn and submit the DD & signed sale agreement to officer.

Step 7: An office enters details of DD and applicant name in computer and prints the franking on backside page of your sale agreement.

Below franking image for your reference.

Franking payment receipt will be handed over, below image for your reference,

The franking cost is offset while sale deed registration. For example: At the time of sale deed registration, you shall pay only 5% of stamp duty instead 5.1% stamp duty of selling price.

This completes the execution of sale agreement, which complies with legal standards and can be challenged in court in case of any dispute

For more secure and high-value transactions, one can register the sale agreement. However, sale agreement registration is not mandatory for home loan applications. FYI

Note: Stamping and registration being state subject, the government charges may vary between states but the procedure of execution is almost the same throughout India. My above answer is more relevant to Karnataka including Bangalore jurisdiction.

---

We provide end to end assistance with sale agreement drafting + execution + franking + home-delivered, to opt for our service, please whatsapp to + 9 1 - 9 7 4 2 4 7 9 0 2 0.

Thank you for reading…