After experiencing some of the most important differences between the purchase agreement and the deed of sale, it is important to know them individually. This would help you understand them better. So let`s start with the sales contract. A contract of sale is a contract for the sale of real estate in the future. This agreement defines the conditions under which the property is transferred. Signing a sales contract becomes important given several factors. First, it is legal proof of the conclusion of an agreement between the buyer and the seller on the basis of which, in the event of a dispute, the future action will be decided. Even if you apply for a home loan, the bank would not accept your application until you sign a sales contract. There is an exception to the rule under section 53A of the Transfer of Property Act, 1882.
Section 53A is intended to protect potential assignees (buyers) by allowing ownership of the property to be retained when a seller (seller) executes an incomplete instrument of sale and fails to comply with the conditions set out in the contract of sale. Although the contemptuous cannot disturb the possession of a buyer on the property, ownership nevertheless remains the domain of contempt. The Supreme Court has also reaffirmed the importance of the sales contract between the contracting authority and the buyer, since it recently decided that the period of allocation of a housing unit to a buyer of a house must be taken into account from the date of the project-buyer contract and not from the date of registration of the project under the Real Estate (Regulation and Development) Act. 2016. The court also ordered the authorities de rera to order the payment of compensation by the contracting authority under the contract of sale, the sanctity of which was confirmed by this order. Even if the signing of the sales contract does not mean that the sale is over, it is a decisive step in this direction. For this reason, buyers need to know precisely the conditions set out in the agreement. Yash warned his friend that the format of an agreement with the seller can be either a deed of sale or a purchase agreement. Therefore, Siddharth must know the divergence between the two.
Neither Siddharth`s real estate agent nor its developer mentioned that the deed of sale and a contract of sale are two different things! In accordance with the Indian Registration Act of 1908, any agreement relating to the transfer of shares in immovable property with a value of more than one hundred rupees must be registered. Therefore, if you have purchased real estate as part of a purchase agreement without a correct deed of sale following, you will not get any right or interest in the property that would be transferred as part of the purchase agreement. A deed of sale is a document that effectively transfers the rights to a property from one party to another. It is usually designed as an extension of the sales agreement. All the conditions mentioned in the first are fulfilled and respected in a deed of sale. . . .