Kaagazaat

Indemnity Bond by Seller in Favour of Buyer

At a glance

Price
₹199 · GST included

₹199

GST included

Launch period: downloads are free for now. The prices shown apply once payments open.

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Also called

  • Indemnity Bond
  • Seller's Indemnity Bond
  • Indemnity Bond for Property Sale
  • Title Indemnity Bond
  • Indemnity Bond in Favour of Purchaser
  • Indemnity Bond cum Declaration
  • Kshatipurti Bandh Patra
  • Nuksan Bharpai Bond

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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Why you need it

When you need it

For after a sale, binding the seller if title proves defective, an encumbrance surfaces, a third party claims the property, an old dues bill lands on the buyer, or a statement proves false. Signed at/after registry. Banks require it before a home loan; societies/authorities before mutation.

See stamp duty, registration and witnesses

What follows is the position for this kind of document. The amount is set by the state the property is in and it changes, so the figure for your own state is worth confirming at the sub-registrar’s office before you pay anything.

Stamp duty

Its own article — Art.34 (Indemnity Bond), routing to Art.57 (Security Bond); most States use a flat sum instead: Maharashtra Rs 500 (Art.35, since a 2015 amendment from Rs 200), Karnataka Rs 200 (Art.29); Delhi/UP/Haryana/Punjab/Rajasthan/MP/Gujarat/TN commonly Rs 100 — check the current notification. Three traps: the sale deed's duty does NOT cover this bond, separately stamped (an argument exists under s.4, Indian Stamp Act, that this is a nominal subsidiary instrument, but pay the full Art.34/35 amount — safer); in an ad valorem-Security-Bond State, naming a maximum figure can attract MORE duty than an uncapped bond; and stamp paper doesn't expire after six months (Thiruvengada Pillai v. Navaneethammal (2008) 4 SCC 530). e-stamp via SHCIL (most States, Chandigarh) or Maharashtra's GRAS/e-SBTR, or Telangana/AP's own IGRS challan. Unstamped, it's inadmissible (s.35), curable only by impounding plus up to 10x penalty.

Registration

Not compulsorily registrable — a personal promise to pay creates no interest in property, so s.17(1)(b) isn't attracted, no four-month clock applies. Optional under s.18 — worth it on a high-value bond, fixing the date and removing signature disputes. Cheaper alternative: recite the bond in the Sale Deed and annex a copy. Watch one thing: if a clause charges the seller's OTHER property as security, the bond becomes an interest-creating instrument that MUST be registered (s.17(1)(b), within four months, s.23/s.25), or s.49 makes it inadmissible — paying for security you don't have. Clause 14.3 deliberately says no charge is created.

Notarisation

Not required by law — valid once signed on stamped paper. Optional but near-universal, often insisted on by banks/societies/authorities — budget for it. Gives an independent notary-register record of date and identity; does NOT register the bond, cure a stamp shortfall, or make the statements sworn testimony. Many files instead use an 'affidavit-cum-indemnity bond' — sworn, adding a criminal sanction for false statements (Bharatiya Nyaya Sanhita 2023 ss.227/229, replacing IPC ss.191/193 from 1 July 2024). This template is a deed, not an affidavit; for the criminal sanction too, add a verification clause and swear it before a notary, rather than simply retitling.

Witnesses

Not legally required — the attestation rules (TP Act ss.59/123; Succession Act s.63) don't reach an indemnity bond. Still recommended: produced years later, often when the seller wants to deny signing, and a witness is what Evidence Act s.68 (Bharatiya Sakshya Adhiniyam 2023) rewards. Use adults unrelated to the seller, traceable in ten years. Every Seller signs each page; joint owners must ALL sign — one of three binds only that one.

Talk to a lawyer about this document₹3,539 including GST (₹2,999 + 18% GST), per documentRequest Stamp Paper

Sample preview — placeholder answers, not your data

INDEMNITY BOND

Given by the Seller in favour of the Buyer, against defects in title, undisclosed encumbrances, third-party claims, unpaid dues and misrepresentation

Place: Gurugram, Haryana

Date: 1 April 2026


1. Who is giving this Bond

1.1 This Indemnity Bond is executed by:

Seller 1

  • Name: Rajinder Kumar Malhotra
  • Son / daughter / wife of: Late Shri Om Prakash Malhotra
  • Address: B-42, Sector 15, Noida, Uttar Pradesh 201301
  • PAN: AFZPM1234K

Seller 2

  • Name: Sunita Malhotra
  • Address: B-42, Sector 15, Noida, Uttar Pradesh 201301

Seller 3

  • Name: Arun Malhotra
  • Address: 14, Rajpur Road, Dehradun, Uttarakhand 248001

1.2 In this Bond, "the Seller" means the person named above and, where more than one person is named, all of them together and each of them separately. Their liability is joint and several: the Buyer may recover the whole of any amount due from any one of them, and it is then for the Sellers to settle the shares between themselves.

1.3 The Seller's status is: Yes — the Seller is a Non-Resident Indian, OCI cardholder or foreign citizen. Clause 6.15 and Clause 7.8 set out what follows from that.

2. Who this Bond is given to

2.1 This Bond is given in favour of:

Buyer 1

  • Name: Ananya Iyer
  • Son / daughter / wife of: Shri Ramesh Iyer
  • Address: Flat 802, Tower C, Emerald Heights, Sector 62, Gurugram, Haryana 122011

Buyer 2

  • Name: Karthik Iyer
  • Address: Flat 802, Tower C, Emerald Heights, Sector 62, Gurugram, Haryana 122011

2.2 In this Bond, "the Buyer" means the person named above and, where more than one person is named, all of them together and each of them separately. Any one Buyer may make a claim under this Bond for the whole of the loss.

2.3 The benefit of this Bond runs with the Property. Anyone in whom the Property later vests through the Buyer — the Buyer's legal heirs, successors, and any person who buys it from the Buyer — may enforce this Bond against the Seller in the same way the Buyer could. This follows the pattern of Section 55(2) of the Transfer of Property Act, 1882, under which the seller's covenant for title is annexed to the interest transferred and may be enforced by every person in whom that interest afterwards vests.

2.4 The Buyer has funded the purchase in whole or in part through HDFC Bank Limited, Gurugram Sector 44 branch ("the Lender"), and the Property is or will be mortgaged to the Lender. The Lender may enforce this Bond against the Seller to the extent of the Lender's own loss, as if the Lender were the Buyer. Nothing in this clause reduces what the Buyer may claim.

3. The Property

3.1 This Bond relates to the following immovable property ("the Property"):

Residential Flat No. 802, Eighth Floor, Tower C, Emerald Heights, built on Plot No. 17, Sector 62, Gurugram, Haryana, admeasuring 1,450 sq ft super area and 1,050 sq ft carpet area, together with one covered car parking space bearing No. C-118 in the basement, and undivided proportionate interest in the land beneath, bounded on the North by Flat 801, South by open corridor, East by external wall facing the park, West by the lift lobby.

3.2 Where the description above is a summary, the schedule to the Sale Deed described in Clause 4 governs, and this Bond covers the whole of what that Sale Deed conveyed, including any parking space, terrace, store, undivided share in the land, and every right, easement and appurtenance that passed with it.

4. The sale this Bond supports

4.1 The Seller has sold the Property to the Buyer for a total price of ₹95,00,000 (Rupees Ninety Five Lakh only), by a Sale Deed (bainama) dated 2 April 2026, registered or presented for registration at the office of the Sub-Registrar, Gurugram (Sohna Road), Haryana.

4.2 The Seller's title to the Property arises as follows:

By Sale Deed dated 04 August 2016 executed by Mr Prem Chand Gupta in favour of the Seller, registered at the office of the Sub-Registrar, Gurugram, as Document No. 8842 in Book No. 1, Volume 1129, at pages 61 to 74. Mr Gupta in turn had acquired the flat by Conveyance Deed dated 21 January 2011 from Emerald Buildwell Private Limited, the developer, registered as Document No. 1207 of 2011.

4.3 The Buyer has paid the price and completed the purchase on the strength of what the Seller said about the Property and its title. The Seller knows that, and gives this Bond so that the Buyer is not left out of pocket if any of it turns out to be wrong.

4.4 Registration particulars of the Sale Deed: Document No. 4419 in Book No. 1, Volume 2214, pages 88 to 103, registered on 10 March 2026.

5. Why this Bond is being given

5.1 The law already gives the Buyer something. Section 55(1)(a) of the Transfer of Property Act, 1882 required the Seller to disclose any material defect in the Property or in the title of which the Seller was aware and the Buyer was not, and which the Buyer could not have found with ordinary care. Section 55(1)(g) required the Seller to clear all public charges, rent and interest on encumbrances up to the date of sale, and to discharge encumbrances then existing. Section 55(2) contains an implied covenant that the interest the Seller professed to transfer subsists and that the Seller had power to transfer it.

5.2 Those protections are real but slow, narrow in what they cover, and argued about. This Bond states in plain terms what the Seller stands behind, what the Seller will pay for, how a claim is to be made, and by when — so that the Buyer does not have to litigate the meaning of a statute in order to be reimbursed.

5.3 This Bond is in addition to, and does not replace, cut down or discharge, the Seller's obligations under the Sale Deed, under the Transfer of Property Act, 1882, or under any other law. Where a term of this Bond and a term of the Sale Deed cover the same ground, whichever gives the Buyer more protection prevails.

6. What the Seller confirms

The Seller confirms each of the following to be true, both as on the date of the Sale Deed and as on the date of this Bond. Each is a statement the Buyer has relied on in paying the price.

6.1 Ownership. The Seller was the sole and absolute owner of the Property, in lawful and peaceful possession of it, with a clear and marketable title, and had full right, power and authority to sell it and to give vacant possession (kabza) of it to the Buyer.

6.2 Chain of title. The chain of title set out in Clause 4.2 is true, complete and genuine. Every document in that chain was properly executed by the person who appears to have executed it, is adequately stamped, and was registered wherever the law required registration. No document in the chain is forged, fabricated, antedated, cancelled, rescinded or set aside, and nothing in the chain has been suppressed.

6.3 No encumbrance. The Property is free from every encumbrance — mortgage, whether registered or by deposit of title deeds, charge, lien, hypothecation, security interest, gift, exchange, trust, court attachment, injunction or prohibitory order, attachment or recovery proceeding by any tax or revenue authority, acquisition or requisition notification, land-ceiling proceeding, easement, right of way, or claim for maintenance — except anything set out in Clause 8.

6.4 No pending proceeding. There is no suit, appeal, arbitration, revenue proceeding, partition action, execution, insolvency or criminal proceeding pending or, so far as the Seller knows, threatened in respect of the Property or the Seller's title to it. No proceeding was pending when the Sale Deed was executed which would bind the Buyer under the rule of lis pendens in Section 52 of the Transfer of Property Act, 1882.

6.5 No prior dealing. Before the Sale Deed, the Seller had not sold, agreed to sell, gifted, exchanged, mortgaged, leased, licensed, taken bayana on, made a will of, or otherwise dealt with the Property or any part of it with any other person, and no other person holds any subsisting agreement to sell, option, booking, right of pre-emption or right of first refusal in respect of it.

6.6 No tenancy or occupation. The Property is not in the occupation of any tenant, licensee, caretaker, watchman, employee, relative or trespasser, and no person has any subsisting right to occupy any part of it.

6.7 Family and heirship rights. No other person has any right, share or interest in the Property as a co-owner, coparcener, member of a Hindu Undivided Family, legal heir, beneficiary under a will or trust, or otherwise. In particular, no daughter, son, widow or other coparcener holds a share by birth or by succession, including under the Hindu Succession Act, 1956 as amended in 2005, which has not been accounted for; and no share belonging to a minor has been sold without the court permission required by Section 8 of the Hindu Minority and Guardianship Act, 1956.

Questions about this document

What does the Indemnity Bond by Seller in Favour of Buyer cost on Kaagazaat?

₹199, GST included.

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