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Banakhat (also spelled as Banakhat) is a preliminary agreement or agreement to sell in Indian real estate transactions. It is a legal document executed between a seller and a buyer before the final sale deed is registered. The Bankhat outlines the terms and conditions of the sale, including the agreed sale price, payment schedule, and timeline for execution of the final sale deed.

Growthify is revolutionizing the traditional property transaction process by offering a tech-enabled platform for creating and managing Bankhat (Banakhat) Agreements . With Growthify, users can securely draft, review, and eliminate paperwork, reducing legal risks, and ensuring transparency between buyers and sellers. The platform streamlines documentation, guides users step-by-step through the legal formalities, and offers expert support to make real estate agreements faster, smarter, and fully compliant. Growthify brings speed, security, and simplicity to your property deals.

Banakhat , also known as an Agreement to Sell, is a preliminary legal contract between a buyer and a seller for the sale of immovable property (such as land or a flat). It outlines the terms of the transaction, including the property details, sale price, payment schedule, possession date, and conditions for transferring title. It serves as evidence of intent to sell but does not transfer ownership, that happens later via the registered Sale Deed.

An Agreement to Sale (Banakhat) is a critical legal document in any property transaction, and even minor errors can lead to disputes or delays. At Growthify, we deliver customized, legally compliant Agreement to Sale drafts, handling everything from drafting and legal review to notarization and delivery with efficiency and care. Our streamlined process saves you time and legal costs, making it ideal for individuals, property agents, and small developers alike.

Types of Banakhat

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Banakhat (Agreement To Sale Without Possession)

In this type of agreement, the buyer pays a token amount, but the seller retains possession of the property until the final sale deed is executed and the full payment is received.

Banakhat (Agreement To Sale With Possession)

Specific Power of Attorney

In this type of Banakhat ( agreement to sale with possession) the seller not only agrees to the sale but also hands over possession of the property to the buyer simultaneously with the execution of the agreement, though ownership remains with the seller until the final sale.

Banakhat PROCESS

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1. Gather Details

We begin by collecting essential information through a user-friendly online form. This includes details about the buyer and seller, property specifics (location, size, survey numbers), agreed terms (price, payment schedule), possession timeline, and any special clauses. Our guided process ensures completeness, reducing back-and-forth corrections.

2. Draft the Agreement

Our legal drafting team customizes a professional Banakhat (Agreement to Sale) based on your inputs. The draft clearly outlines the parties' obligations, property descriptions, consideration amount, advance paid (if any), and conditions of possession or cancellation.

3. Compliance Check

Every draft undergoes a thorough legal review to ensure compliance with applicable laws, such as the Indian Contract Act and relevant state-level land regulations. Our team checks for critical elements like proper jurisdiction, mandatory clauses, and clarity in terms to ensure the agreement is legally valid and enforceable.

4. Stamp Duty & Notarization (If Required):

Depending on the state's legal requirements, we guide you on applicable stamp duty and whether notarization is necessary. If required, Growthify facilitates notarization through licensed notaries and advises on registration procedures for future steps.

5. Deliver the Final Product

After legal review and any required notarization, we deliver the finalized Banakhat digitally through our secure platform or as a printed document ready for execution. Clients can review the draft online, suggest edits in real-time, and proceed confidently knowing their Agreement to Sale is professionally prepared and legally compliant.

Common Questions on Banakhat

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What is the difference between a Banakhat and a Sale Deed?

A Banakhat is a non-binding (except for specific obligations) preliminary agreement that locks in the deal's terms and often involves an initial payment. In contrast, a Sale Deed (or Vechan Dastavej) is the final, registered document that legally transfers ownership and possession from the seller to the buyer. The Banakhat typically precedes the Sale Deed once all conditions (e.g., full payment) are met.

Is a Banakhat legally binding?

Yes, a registered Banakhat is legally enforceable as a contract under the Indian Contract Act, 1872, and can be used in court to compel specific performance (e.g., executing the Sale Deed). It must include clear terms like payment details and timelines to avoid disputes. Unregistered Banakhat agreements are also binding but harder to enforce without registration.

How do I register a Banakhat?

To register, both parties must visit the local Sub-Registrar's Office with: 1. Original property documents (e.g., title deed, encumbrance certificate). 2. ID proofs (Aadhaar, PAN) and two witnesses. 3. Draft agreement on stamp paper (value based on property cost, typically 0.5-1% in Gujarat). Pay registration fees (around 1% of property value) and stamp duty. The process takes 1-2 hours, and the document gets a registrar's stamp for authenticity.

What should be included in a Banakhat?

Key elements include:
1. Details of buyer, seller, and property (location, area, boundaries).
2. Total sale price and payment schedule (e.g., initial deposit, balance via cheque).
3. Possession and title transfer dates.
4. Warranties (e.g., property is free of liens).
5. Default clauses (e.g., forfeiture of deposit if buyer backs out).
6. Signatures of both parties and witnesses, notarized for added validity.

What are the stamp duty and registration fees for a Banakhat?

In Gujarat (where Banakhat is commonly used), stamp duty is typically 0.5% of the property's market value or agreement value (whichever is higher). Registration fees are about 1% of the value. Exact amounts vary by location and property type, use the state's online calculator or consult a lawyer. Late registration may attract penalties.

Can I get a home loan based on a Banakhat?

Generally, no. Banks require the final registered Sale Deed for loan disbursement. However, some lenders may advance a portion based on a registered Banakhat if it includes a clear payment schedule and property verification. Always check with your bank and include loan-related clauses in the agreement.

What happens if the buyer or seller breaches the Banakhat?

If the buyer defaults (e.g., misses payments), the seller can forfeit the deposit (typically 10-20%) and cancel the deal. If the seller defaults, the buyer can seek specific performance in court or claim damages/refund plus interest. Timelines matter as breaches must be addressed within 3 years of execution (or as per the agreement). Consult a lawyer immediately to avoid escalation.

Can a Banakhat be canceled or modified?

Yes, with mutual consent via a cancellation deed (registered similarly). Modifications (e.g., name changes) require an addendum agreement. Unilateral cancellation may lead to legal action, including loss of deposit. For under-construction properties, check for builder-specific clauses.

How can your Banakhat service help me?

Our service provides end-to-end assistance: drafting customized Banakhat templates in English, legal review, stamp duty calculation, and registration support. We ensure compliance with local laws, minimize risks, and offer notary/translation services. Contact us for a free initial consultation to safeguard your property transaction.