The ownership of a property must be clear and marketable, and it is said that this is the case only during the execution of the deed of sale. In practice, however, buyers execute the purchase contract as a precaution, although they are aware that it does not establish ownership of a property. A deed of sale is considered an authentic deed and also establishes clear ownership of the property as it is a document that is compulsorily registrable under section 17(1) of the Registration Act 1908. However, § 13 of the RERA Act 20161 requires that a purchase contract be registered. However, this is not the case with the Registration Act 1908. Therefore, the validity of the sales contract always becomes an unresolved conflict. Thus, both documents are significantly involved in the transfer of ownership to the buyer, albeit at different levels of sales activity. However, for these documents to be executed, 2 parties must be present: the buyer and the seller must be present during the transfer of ownership. The seller must be allowed to enter into a contract for the sale or deed of sale, as he has undisputed title to the property that wants to be sold. Monetary consideration must also be required to transfer ownership to the buyer.

That transfer of ownership constitutes a transfer of rights and responsibilities related to the property in question, and such a transfer, with the money at stake, results in a sale guided by the contract of sale and ultimately concluded by the deed of sale. 3) Once the deed of sale has been executed, the purchase contract has no value. Signing a sales contract becomes important in light of several factors. First, it is legal proof that in the event of a dispute, buyers and sellers enter into an agreement on the basis of which the future course of action is decided. When you apply for a home loan, the bank will not accept your application until you sign a purchase agreement. When we analyze the provision, we can understand that the document to which it refers is a contract of sale. In addition, it is also stated that the contract of sale as such falls within the category of Article 17(2) of the Law on registration as a document which cannot be compulsorily registered. This question arises because the registration of documents is usually done to guarantee the buyer a clear right and ownership of the property. An agreement on the sale as such does not provide for a clear claim to the property. The Supreme Court ruled in Durgawati Devi v.

Union of India2 that the execution of the purchase contract does not transfer ownership/ownership of the property and that ownership/title is transferred only by deed of transfer. If you have expressly mentioned or specified the period, i.e. from and after, this contact will take place within the period specified in the contract. Now that we know what the process of registering purchase contracts and sales contracts is, we need to look at what a deed of sale is. The purchase contract may or may not lead to an actual sale of the property in question. Some of the stamp duty laws, such as the Maharashtra Stamp Act, consider an agreement to sell a property on the same basis as an appropriate deed of transfer and are therefore subject to the same stamp duty applicable to the appropriate deed of transfer or sale of a property. Because of these provisions that require the payment of stamp duty on a contract of sale, people mistakenly perceive a contract of sale as an appropriate deed of sale. In cases where you have purchased and taken possession of a property under a purchase agreement, title to the property will remain with the developer unless a deed of sale has been signed and subsequently registered under the Indian Registration Act. This clearly shows that a title deed can only be transferred by a deed of sale. In the absence of a duly stamped and registered deed of sale, the buyer of the property has no right, title or share in any property.

In the event of the Seller`s failure to sell or take possession of the property to the Buyer, the Buyer shall be entitled to certain performance under the provisions of the Specific Reparations Act 1963. A similar right is available for the seller under the contract to require a specific service from the buyer. 4) If you get a consent written by the lawyer, you will definitely be 1. The buyer can get a loan on the basis of the agreement. As this does not lead to the mortgage of your property, the obligation to repay the loan rests directly with the buyer. What the purchase contract creates is a right for the buyer to buy the property in question under certain conditions. Likewise, the seller receives the right to receive the consideration from the buyer in accordance with its part of the General Conditions. Another reason to register a purchase agreement is that when you apply for a home loan, you must submit a copy of your purchase agreement. Without them, banks usually consider your documents to be incomplete. Any transaction related to the transfer of real estate can only be carried out through a recommended document. A contract of sale is an instrument in which the seller promises to transfer ownership to a buyer if certain conditions are met, but it does not establish ownership of the property by the buyer.

A sale agreement is an agreement to sell a property in the future. This agreement defines the conditions under which the property in question is transferred. To be considered valid evidence in court, the purchase contract must be registered. This will be of great help in the future in the event of conflicts that may arise for any reason. It does not give the buyer any power over the property or any rights. This absolute rule is subject to the exception of Section 53A of the Transfer of Ownership Act. Article 53A provides that the seller is not entitled to have acquired the property granted to the buyer of the transferred property, while fully fulfilling its part of the contractual obligation to disturb the property so granted to the buyer. It should be noted that Article 53A provides the prospective acquirer with protection against the assignor and prevents the transferor from interfering with the purchaser`s property, but it does not repair the buyer`s ownership of the property. Ownership of the property remains the property of the seller. Several decisions of the Supreme Court and the Supreme Court have ruled that unregistered purchase contracts are not recognized by the courts. If all sales contracts are compulsorily registered, it will help prevent the generation and circulation of black money and discourage the growth of benchmarks and muscular men to dominate the real estate market, as seen in many parts of the country.

Once the sales registration is complete, ownership of the property is transferred to the buyer and he can sell or stay on the property he just bought. Registering a purchase agreement is a very smart decision, as various legal acts such as the INDIAN CONTRACT ACT, the SPECIFIC RELIEF ACT and many laws enforced by the states have supported the REGISTRATION OF THE PURCHASE CONTRACT. REGISTRATION for sales makes the PURCHASE CONTRACT valid. The Supreme Court also reaffirmed the importance of the purchase agreement between the builder and the buyer, as it recently ruled that the period of allocation of a residential unit to a home buyer must be taken into account from the date of the builder-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 RERA authorities to order the payment of compensation to the builder in accordance with the contract of sale, the sanctity of which was maintained by that order. : A purchase contract represents the conditions of sale of a property by the seller to the buyer. These terms and conditions include the amount at which it is to be sold and the future date of full payment.

Description: As an important document in the sales transaction, it allows the sales process to run smoothly. All the conditions set out in Suraj Lamp & Industries (P) Ltd (2) v State of Haryana, while dealing with the validity of sales of real estate by proxy, ruled as follows: 1) On the basis of a sale agreement, the buyer may apply for a loan for the purchase of the property A deed of sale is a legal document, this proves that the seller has transferred absolute ownership of the property to the buyer. Through this document, the rights and interests in the property are acquired by the new owner. A deed of sale usually consists of the following information: Even if the signing of the purchase contract does not mean that the sale is complete, it is a crucial step in this direction. .