The deal
What should an agreement to sell include?
By Adil Builders · Updated 25 September 2026
An agreement to sell is a contract in which the seller agrees to sell and the buyer agrees to buy, on specified terms. It is what turns "I intend to buy this" into "here are the exact terms we are committing to."
It is not the transfer
An agreement to sell is not the same thing as the final registered transfer of the property.
The Registration Act treats a contract for sale of immovable property differently from the documents that must be registered to transfer it. Signing an agreement and paying a bayana does not make you the owner. Ownership moves later, through the sale deed and registry, the society transfer, and the mutation, depending on the property.
What it should cover
- The parties, exactly as named in their ID and the ownership records.
- The property, precisely: plot number, block, phase, scheme, Khasra details, area, boundaries and registry references as they apply. Not "a ten marla plot in ABC Society."
- The price and the payment schedule.
- Conditions that must be met before each payment is due.
- The completion date, realistic but firm.
- Documents the seller must hand over.
- Who pays what: taxes, duties, transfer fees and existing dues.
- The seller's written statements about ownership, authority, claims, mortgages, prior sales, dues and approvals.
- What happens if either side defaults, including what happens to money already paid.
- Possession: when and how it is handed over.
Conditions precedent: the buyer's best protection
A condition precedent is something that must happen before a payment becomes due. For example, the final payment is only due once title is verified, a bank charge is cleared, the society confirms there are no dues, and the transfer documents are ready.
You are no longer paying "because it's Tuesday." You are paying because agreed conditions have been met.
Put promises in writing
The seller says verbally he will clear the society dues. Three months later: "no, buyer pay karega." Your memory proves nothing. A clause saying all dues before completion are cleared by the seller before transfer gives you a contractual position.
WhatsApp promises, dealer statements and "family understanding" are not a substitute for written obligations on anything that matters.
Use your own lawyer
The seller's lawyer protects the seller. Have a Pakistani property lawyer of your own draft or review the agreement before you sign and before any significant payment.
From Chapter 7, From "I Want It" to "It’s Mine" of Understanding Property in Lahore, built from PLRA, LDA and FBR sources.