If a real estate transfer is planned for the future and there are general conditions, it is called a sales contract. This is a sale if all the conditions are met or if the time of transfer of ownership has elapsed. A deed of sale is constituted when an immediate transfer of ownership is made. Get to know the differences clearly from here. The contract of sale may, or may not, lead to an actual sale of the property in question. Some stamp duty laws, such as the Maharashtra Stamp Act, provide for an agreement to sell real estate as an appropriate deed of transfer and are therefore subject to the same stamp duty as that applicable to the deed of transfer or deed of sale of real estate. Under these provisions, which require payment of stamp duty on a contract of sale, persons wrongly perceive a contract of sale as a deed of sale in due form. When buying a resale property in a housing co-operative corporation, I have differing views on whether a “deed of sale” is appropriate or whether a “deed of assignment” is appropriate. I have consulted several members of the bar and the opinion seems divided, some saying that Deed is mandatory, some say that deed of Assignment is correct and some even suggest quite absurd – “You tell us what you want and we will do it for you”. In the event of the seller`s failure to sell or hand over the property to the buyer, the buyer obtains a right to certain services in accordance with the provisions of the Specific Relief Act 1963.
A similar right is available to the seller under the contract to obtain a specific service from the buyer. In this context, we would discuss the main differences between the two documents. 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. `Any contract of sale (agreement of sale) which is not a registered deed of assignment (deed of sale) would not satisfy the requirements of sections 54 and 55 of the Transfer of Ownership Act and would not confer title or interest in immovable property (with the exception of the limited right granted under section 53A of the Transfer of Ownership Act).` You know, do we have to do a mission? In English law, to be a valid contract, there must be a consideration that is worth either money or money. An alternative is to carry out the mission as an instrument, although there are certain formalities that must be followed for the agreement to be an act. Generally speaking, real estate has a higher value than movable property, since it includes sales related to complex procedures. The sale of the property also requires a detailed description and understanding of the entire process and the roles of the parties. Therefore, the first step in the sale of real estate is to draw up a sales contract. 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 proper 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.
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