Ownership of the property remains in the hands of the seller. In 2012, in the case of Suraj Lamp & Industries (P) Ltd (2) v Den State of Haryana, while dealing with the validity of sales of real estate by proxy, the Indian Supreme Court ruled as follows: The Sale of Goods Act, 1930, clarifies the difference between the sale and the agreement to sell. It states that the contract for the sale of goods is a contract in which a seller transfers ownership of goods to the buyer at a price or agrees to transfer them. Such a contract may be absolute or conditional. 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. 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. A deed of sale is a document that effectively transfers the rights to a property from one party to another.
It is usually designed as an extension of the sales agreement. All the conditions mentioned in the first are met and respected in a deed of sale. Here are some of the points mentioned in a deed of sale. […] You with all aspects of your purchase/sale of a property, from the organization of the sales contract to the registration of it in your name. We have a network of lawyers […] The Supreme Court also reaffirmed the importance of the contract of sale between the owner and the buyer, since it recently decided that the period of allocation of a housing unit to a buyer of a house should be taken into account from the date of the owner-buyer contract and not from the date of registration of the project in accordance with the Real Estate (Regulation and Development) Act, 2016. The court also ordered the RERA authorities to order the payment of the contracting authority`s compensation under the contract of sale, the sanctity of which was confirmed by that order. 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 ownership transfer time has elapsed….