A contract to sell is a legal agreement between two parties where one party agrees to sell a specific item or property to the other party at a predetermined price and within a specified time frame. This contractual agreement outlines the terms and conditions of the sale, including the obligations and responsibilities of both parties involved. It is important to understand the legal definition of a contract to sell in order to protect your rights and interests as a buyer or seller.
According to the legal definition of contract to sell, it is a preliminary contract that sets out the intention of the parties to enter into a future sale. It is binding on both parties and creates an obligation to execute a sale deed in the future upon fulfillment of certain conditions, such as payment of the purchase price and delivery of the property. This means that the contract to sell does not transfer ownership of the property but creates a contractual obligation to do so in the future.
On the other hand, a registered sale deed, also known as a conveyance deed, is a legal document that transfers the ownership of a property from the seller to the buyer. It is executed after the conditions specified in the contract to sell have been fulfilled. The registered sale deed is a conclusive proof of the transfer of ownership and is required for the buyer to assert their rights over the property.
So, what is the difference between an agreement to sell and a registered sale deed? The difference lies in the legal effect of these two documents. While a contract to sell creates an obligation to execute a sale deed in the future, a registered sale deed actually completes the transfer of ownership. The contract to sell is a preliminary step towards the sale, whereas the registered sale deed is the final, legally binding document that confirms the transfer of property rights.
Understanding the legal aspects of a contract to sell and a registered sale deed is crucial, especially when engaging in property transactions. Whether you are considering buying or selling a property, it is essential to consult with a legal professional to ensure that your rights and interests are protected throughout the process.