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. A contract of sale is a promise in the future that the property will be transferred to the rightful owner, while the deed of sale is the actual transfer of ownership to the buyer. 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. What the sales contract creates is a right for the buyer to buy the property in question under certain conditions. Likewise, the seller obtains the right to obtain the consideration of the buyer if his part of the general conditions of sale is respected. 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.
The Transfer of Property Act, 1882, which governs matters relating to the sale and transfer of immovable property, defines the contract of sale or a contract of sale as follows: In accordance with the Indian Registration Act, 1908, any agreement to transfer shares in property of more than one hundred rupees is required for registration. 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. The above definition makes it clear that a contract of sale contains a promise of future transfer of a property in question if certain conditions are met. This agreement itself therefore does not create any right or interest in the property for the proposed buyer. Under the Transfer of Ownership Act, a contract of sale, with or without ownership, is not a transfer….
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