No authentic certified hashish dispensary or shipping carrier could even promote it while not having a tobacco license. In contract of sale the property in goods transfers from seller to buyer immediately on the other hand in Agreement to sell property in goods does not transfer immediately. Section 4 of the Sale of Goods Act defines sale and Agreement to sell as :.
There may be a contract of sale between one part-owner and another. Main Differences between Sale and Agreement to Sell. Agreement to Sell. In contract of sale property in goods transfers from seller to buyer immediately. In agreement to sell, property in goods does not transfer immediately. Contract of sale is an executed contract. Agreement to Sell is an executory contract. It creates right in rem. It creates rights in personam.
The seller can sue the buyer for case of breach of contract. The seller can sue the buyer only for damages but not for the price. Sale is liable for the Sale Tax. Agreement to sale is not liable for the Sale Tax. Seller has no right of resale.
At the time of property registration, home buyers also have to present, along with other key documents copies, the agreement to sell. Doing so is important, for the authorities to ensure that the transaction is being concluded, based on the agreement made between the buyer and the seller previously. The sales agreement may or may not result into an actual sale of the property in question.
Some of the stamp duty laws, like the Maharashtra Stamp Act, deem an agreement for sale of an immovable property, on the same footing as a proper deed of conveyance and therefore, are subject to the same stamp duty as is applicable on the proper deed of conveyance or sale deed of an immovable property. Due to such deeming provisions, requiring payment of stamp duty on an agreement for sale, people mistakenly perceive an agreement for sale, as a proper sale deed.
According to the Transfer of Property Act, an agreement for sale, whether with possession or without possession, is not a conveyance. Section 54 of the Transfer of Property Act enacts that the sale of an immovable property can be made, only by a registered instrument and an agreement for sale does not create any interest or charge on its subject matter.
The Supreme Court further reiterated the importance of sale agreement between the builder and buyer, as it recently ruled that the period of allotment of a housing unit to a home buyer has to be considered from the date of the builder-buyer agreement and not from the date of registration of the project under the Real Estate Regulation and Development Act, The court further ordered the RERA authorities to order payment of compensation from the builder as per the sale agreement, the sanctity of which has been upheld through this order.
As per the Indian Registration Act, , any agreement for transfer of any interest in an immovable property of value more than one hundred rupees, is required to be registered. So, if you have purchased any property under any agreement for sale, without it being followed by a proper sale deed, you do not get any right or interest in the property purported to be transferred under the agreement of sale.
This absolute rule is subject to the exception provided under Section 53A of the Transfer of Property Act. Section 53A provides that where the buyer has obtained possession of the property that is subject matter of the transfer, while fully complying with his part of the obligation under the agreement, the seller shall not be entitled to disturb the possession so granted to the buyer.
It may be noted that Section 53A provides a shield to the proposed transferee against the transferor and debars the transferor from disturbing possession of the transferee, but it does not cure the title of the buyer to the property. The ownership of the property still remains with the seller.
So, in the cases where you have purchased any property under a sales agreement and got possession, the title of the property still remains with the developer, unless a sale deed subsequently has been executed and registered under the Indian Registration Act. Thus, it becomes clear that a title in an immovable property can only be transferred by a sale deed.
In the absence of a duly stamped and registered sale deed, no right, title or interest in an immovable property, accrue to the buyer of the property. It is the responsibility of the buyer to pay the stamp duty and the registration fee for registration of the sale deed. It is the responsibility of the buyer to pay the stamp duty and the registration fee for the registration of agreement for sale.
In case a property deal cannot be materialized after the sale agreement is executed, each party will have to settle the matter based on the terms and conditions stated in the sale agreement. If the sale could not complete because of a fault of the buyer, the seller may be entitled to not refund the earnest deposit or token money given by the buyer. In case the seller is responsible for the sale deal to be unsuccessful, he may have to compensate the buyer for loss of time and mental agony.
An agreement for sale, is an agreement to sell a property in future. This agreement specifies the terms and conditions, under which the property in question will be transferred. The sale deed is the main legal document by which a seller transfers his property right to the purchaser, who then acquires absolute ownership of the property. An agreement for sale is a promise in future, that the property will be transferred to the rightful owner while sale deed is the actual transfer of property ownership to the buyer.
Skip to content. Table of Contents What is an agreement to sell? Types of Sale. Key Differences Between Sale and Agreement to Sell The following are the major differences between sale and agreement to sell: When the vendor sells goods to the customer for a price, and the transfer of goods from the vendor to the customer takes place at the same time, then it is known as Sale. When the seller agrees to sell the goods to the buyer at a future specified date or after the necessary conditions are fulfilled then it is known as Agreement to sell.
The nature of sale is absolute while an agreement to sell is conditional. A contract of sale is an example of Executed Contract whereas the Agreement to Sell is an example of Executory Contract.
Risk and rewards are transferred with the transfer of goods to the buyer in Sale. On the other hand, risk and rewards are not transferred as the goods are still in possession of the seller.
If the goods are lost or damaged subsequently, then in the case of sale it is the liability of the buyer, but if we talk about an agreement to sell, it is the liability of the seller. Tax is imposed at the time of sale, not at the time of agreement to sell. In the case of a sale, the right to sell the goods is in the hands of the buyer. Conversely, in agreement to sell, the seller has the right to sell the goods.
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