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 real estate, defines the contract of sale or a contract of sale as follows: Remember here that both parties must comply with the conditions set out in the agreement of sale. Any party that fails to comply with any of the conditions set out in the agreement may be brought before the courts if the other party so wishes. All parties concerned should also ensure that this document can be invoked as legal evidence before the courts of the law and that all those who have agreed to comply with the conditions are legally bound by it. Sometimes a buyer pays for the property in cash. However, in most cases, the buyer needs additional financing to obtain the full purchase price. Here are the three common financing methods used in real estate purchase contracts: “Any contract of sale (agreement of sale) that is not a registered deed of transfer (deed of sale) would not meet the requirements of § 54 and 55 of the Transfer of Ownership Act and would not lend title or transfer shares in immovable property (with the exception of the limited right granted under Section 53A of the transfer of ownership). Property Act. Under the Transfer of Ownership Act, a contract of sale, with or without ownership, is not a transfer.
Section 54 of the Transfer of Ownership Act provides that the sale of immovable property may be made only by a registered instrument and that a contract of sale does not generate interest or charges for its property. In cases where you have purchased and taken possession of real estate under a contract of sale, title to the property remains in the hands of the developer, unless a certificate of sale has been executed a posteriori and registered under the Indian Registration Act. Thus, it is clear that a title to immovable property 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 does not have the right, title or interest in a property. With regard to real estate, a contract of sale is a contract between a buyer who wishes to buy a house or other land and a seller who owns and wishes to sell that property. A real estate purchase contract is usually offered by a buyer and is subject to acceptance of the terms by the seller. 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 performance from the buyer. . . .