Agreement to Sell Property Format in Pune Explained

Buying a property in Pune is a financial marathon. Whether you are booking an under-construction flat in the bustling lanes of Balewadi or negotiating a resale deal for a spacious apartment in Kothrud, the excitement is palpable. You have sorted the finances, checked the Vastu, and maybe even picked out the curtains. But before you get the keys, you have to cross a treacherous bridge called the "Agreement to Sell".

In the local Pune real estate market, you will often hear two Marathi terms thrown around by agents and lawyers: "Sathe Khat" and "Kharedi Khat". To the uninitiated, they sound similar. Most first-time buyers confuse the two. They sign the first one thinking they have become owners, pop the champagne, only to realize later that they just signed a "promise", not a "purchase".

This guide is not a boring legal textbook filled with jargon that requires a dictionary. It is a practical, street-smart explanation of the Agreement to Sell (ATS) format in Pune. We will decode the clauses that actually matter, expose the traps that builders and sellers hide in the fine print, and explain why a ₹500 stamp paper notarized agreement is basically a piece of trash in 2026. If you are putting your life savings into a property, reading this article is not optional—it is mandatory.

1. Agreement to Sell (Sathe Khat) vs. Sale Deed (Kharedi Khat)

The confusion starts here. Many buyers in areas like Viman Nagar or Kharadi ask: "Sir, I have registered the agreement. Am I the owner now?"

The answer is a loud NO.

An Agreement to Sell is a roadmap. It is a legal contract where the seller promises to transfer the property to the buyer at a future date, provided certain conditions (like payment of the full amount) are met. It creates a right to purchase, but it does not transfer the title.

Think of it this way:
The Sale Deed (Kharedi Khat) is the destination (Ownership).
The Agreement to Sell (Sathe Khat) is the journey (Terms & Conditions).

In Pune, if you are buying an under-construction property from a builder, you sign an Agreement to Sell. You don't get the Sale Deed until the building is complete, the OC is received, and you pay the full amount. For resale properties, the Agreement to Sell and Sale Deed often happen very close to each other, or sometimes directly the Sale Deed is executed if the payment is immediate.

2. The 6 "Must-Have" Clauses in Your Pune Agreement

In Pune, builders use a standard "MOFA" (Maharashtra Ownership Flats Act) or RERA format. Resale deals use custom drafts prepared by lawyers. Regardless of the format, if these 6 clauses are missing or weak, DO NOT SIGN. You might feel awkward questioning the builder's lawyer, but remember, it is your money.

Clause A: The "Time is Essence" Clause

This is the most critical line in the entire document.
"Time is the essence of this contract."
Why it matters: If the agreement says you must pay the balance amount within 60 days, and you delay by even 1 day, the seller can legally cancel the deal and forfeit your token money.
Pune Reality: In resale deals in areas like Aundh or Baner, sellers are aggressive. If your home loan gets delayed by the bank (which happens 90% of the time with PSU banks like SBI due to their slow legal verification), the seller can technically cancel.
The Fix: Always negotiate for a "90 days + 30 days grace period" clause. Explicitly mention that if the delay is due to the Bank's processing despite the buyer's cooperation, no penalty shall apply.

Clause B: The "Defect Liability" (For New Flats)

Under RERA, the builder must fix structural defects for 5 years from the date of possession.
The Trick: Some cunning builders in fringe areas like Wagholi or Moshi sneak in a clause: "Warranty valid only if maintenance charges are paid to the builder's agency."
The Fix: Strike that out immediately. The warranty is statutory (by law). It cannot be conditional on your maintenance payments or which internet provider you use. If the roof leaks or the plaster falls, they must fix it, period.

Clause C: The "Default & Forfeiture" Clause

What happens if you back out because of a personal emergency?
Standard Clause: "Seller forfeits 10% of the total consideration."
Human Logic Calculation: If the deal value is ₹1.5 Crore, 10% is ₹15 Lakhs. That is exorbitant.
Negotiation: Negotiate this down to "Forfeiture of Token Amount (₹1-2 Lakhs) only".
Reverse Clause: What if the SELLER backs out? Ensure the agreement says: "Seller must refund the money received along with equal amount as penalty." (Double money return). Without this, the seller can just return your money interest-free after using it for 3 months to pay his own debts.

Clause D: The "TDS" Clause (Section 194-IA)

If the property value is ₹50 Lakhs or more, YOU (the Buyer) are responsible for deducting 1% TDS from the payment.
The Trap: The agreement might say "Buyer to pay full amount to Seller." If you pay the full amount and don't deduct TDS, the Income Tax Department will send YOU a notice for non-compliance, not the seller.
The Process: Ensure the clause explicitly states: "The Buyer shall deduct TDS @ 1% u/s 194-IA and provide Form 16B to the Seller." This protects you from future tax liability and clarifies that the 1% is part of the consideration.

Clause E: "As is Where is" Basis (For Resale)

Sellers love this phrase. It means "Take the flat as you see it. Don't complain later about the leaking tap, the broken window, or the termite infestation in the wardrobe."
Advice: Before signing, visit the flat with a plumber and an electrician. Check the flush, the wiring, the switches, and the walls for dampness. Once you sign an "As is Where is" agreement, the seller is not liable for repairs. If you find a major structural crack hidden behind a painting later, it is your problem.

Clause F: The "Force Majeure" Clause (Act of God)

Builders love this clause to justify delays. It says: "Possession will be delayed in case of flood, earthquake, war, or change in government policy."
The Abuse: During COVID-19, this was valid. But now, some builders use vague terms like "shortage of material" or "labour strike" or "economic slowdown" under this clause.
The Fix: Ensure the clause is specific. "Shortage of cement" is NOT an Act of God; it is poor planning by the builder. "Economic slowdown" is a market risk, not a Force Majeure event.

3. Resale vs. Under-Construction: Different Rules

The format of the agreement changes drastically depending on what you are buying.

Under-Construction (Builder Purchase)

Here, the format is largely dictated by RERA. The Model Agreement for Sale prescribed by MahaRERA is usually followed.
Pros: It is balanced. It has defined payment schedules (slab-wise).
Cons: You have very little room to negotiate. Builders usually say "Standard Format, Sir, take it or leave it."
Check: Verify the RERA Registration Number mentioned in the agreement matches the one on the MahaRERA website.

Resale Property (Secondary Market)

Here, it is the Wild West. The agreement is drafted by the Buyer's lawyer or Seller's lawyer.
Pros: You can customize everything. You can add clauses for furniture, parking, and handover date.
Cons: If you don't have a good lawyer, the seller can slip in dangerous clauses.
Critical Check: The "Chain of Agreements". In resale, you must reference ALL previous agreements (Parent Deeds) in your current agreement. If the previous owner bought it in 2010, that 2010 agreement details must be mentioned in the "History of Title" section.

4. The "Cash Component" & Agreement Value Trap

This is the elephant in the room in Pune's real estate market.
The Agreement Value is the "White" component—the amount shown on paper.
The Market Value is the actual price you pay.

The Scenario: You buy a flat for ₹1 Crore. The Seller wants ₹80 Lakhs in Cheque (Agreement Value) and ₹20 Lakhs in Cash.
The Risk:
1. Home Loan: Banks only fund 80% of the Agreement Value (₹80L), i.e., ₹64 Lakhs. You have to arrange the remaining ₹36 Lakhs (₹16L margin + ₹20L cash) from your pocket. This is the Funding Gap.
2. Section 269SS: Accepting cash above ₹20,000 for property is technically a violation of Income Tax laws. While common, it carries a penalty.
3. Resale Loss: When you sell this flat 5 years later, your "Cost of Acquisition" will be considered ₹80 Lakhs, not ₹1 Crore. You will pay higher Capital Gains Tax then.

5. Step-by-Step Registration Process at Haveli Offices

In Pune, the Sub-Registrar Offices are known as "Haveli" offices. There are about 27 of them.
Haveli 1 to 27: Distributed across the city. For example, if you buy in Wakad, you might go to the Pimpri SRO. If you buy in Hadapsar, you go to the Magarpatta SRO.

The Real Process (Not the Theory):

• Step 1: Drafting: Your lawyer drafts the agreement. Don't rely on the "Standard Format" of the DTP operator outside the office. They often use outdated templates.
• Step 2: Data Entry: Details are uploaded on the IGR Maharashtra website (Public Data Entry).
• Step 3: Challan Payment: Stamp Duty and Registration fees are paid online via GRAS (Government Receipt Accounting System). You get a Defaced Challan.
• Step 4: Slot Booking: You book a time slot (eToken). In busy offices like Haveli 23 (Baner), slots run out days in advance.
• Step 5: The Visit: Buyer, Seller, and 2 Witnesses visit the SRO. You wait in a crowded hall. When your number is called, you go to the desk, give your thumbprint (Biometric), and get your photo clicked.
• Step 6: The "Server Down" Drama: It is common for the IGR server to be slow or down, especially on Mondays and Fridays. Be prepared to wait for 3-4 hours.
• Step 7: Delivery: The registered document is usually available for download the same day or next day. The original "Index II" is the proof of registration.

6. Stamp Duty on Agreement to Sell in Pune

This is where it gets expensive. Unlike a Leave & License (Rent) agreement which costs peanuts, an Agreement to Sell attracts the Full Stamp Duty.

Current Rates (2026):
- Pune Municipal Corporation (PMC): Roughly 7% (5% Stamp Duty + 1% LBT + 1% Metro Cess).
- Pimpri Chinchwad (PCMC): Similar structure.
- Rural Areas (PMRDA): Slightly lower as Metro Cess might not apply in all zones.

The Female Concession: If the property is in the name of a woman (sole or joint), you get a 1% concession on Stamp Duty. This is a huge saving—₹1 Lakh on a ₹1 Crore flat. However, the catch is you cannot sell such a property for 15 years, or you have to pay back the concession.

Good News: The Stamp Duty you pay now (on the Agreement) is adjusted later when you do the Sale Deed. You don't pay twice. You just pay the remaining difference (if any) or just the registration fee.

7. Common Scams to Avoid in Pune

The "Double Sale" Scam:
The seller takes a token from you and signs a notarized agreement. Then he takes a token from Mr. Patil and signs another notarized agreement. He collects tokens from 5 people and vanishes.
Solution: Register the agreement immediately. Once registered, it shows up in the "Index II" public records. Any future buyer doing a title search will see your name. A notarized agreement is invisible to the public.

The "Parking" Scam:
The agreement says "One Car Parking". But on the ground, the builder has given you a "Stilt" parking which is actually a common area, or a "Mechanical" parking that doesn't work.
Solution: Ensure the parking slot number is specifically mentioned in the agreement schedule and marked on the map attached. "Open Parking" cannot be sold by law; it belongs to the society.

The "Super Built-up" Loading:
The agreement mentions 1200 sq. ft. But you only get 800 sq. ft. inside.
Solution: RERA mandates that the agreement must mention the Carpet Area. Ignore the "Saleable Area" or "Super Built-up Area". Pay based on Carpet Area.

8. Why Notarized Agreements are "Trash"

In 2026, many small-time brokers in Pune still suggest: "Sir, why pay stamp duty now? Let's just do a Notarized Agreement on ₹500 stamp paper. We will register the final deed later."

THIS IS A SUICIDE MISSION.

A Notarized Agreement to Sell has ZERO value in a property dispute.
1. No Legal Standing: You cannot use it to stop the seller from selling the flat to someone else. The court does not recognize it as a valid transfer of interest.
2. No Loans: Banks will NOT give a loan on a notarized agreement.
3. Heir Issues: If the seller dies, his heirs can refuse to honor a notarized paper, calling it a forgery.
The Law: In Maharashtra, an Agreement to Sell specifically for immovable property MUST be registered at the Sub-Registrar Office to be admissible as evidence.

Conclusion

The Agreement to Sell is the most important document in your property purchase journey. It defines the rules of the game. Once signed and registered, you cannot change the rules. You are bound by every comma and full stop in that document.

Don't save ₹5,000 by using a "Cut-Copy-Paste" format from a Xerox shop. Hire a good conveyance lawyer in Pune. Read every clause. Ask "What if..." questions. In a city like Pune where property prices are skyrocketing and legal battles take decades, your signature is your most expensive asset. Use it wisely. Register it, check the clauses, and only then hand over the cheque.