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What is the difference between Agreement to sell and Sale deed? Can the Title of a property be transferred only on the basis of a registered Agreement to sell?  Is it necessary to make a registered sale deed to transfer such property though there is an Agreement to sell between two parties and is also registered?

- by Rajiv, Greater Noida

Agreement to sell is a preliminary arrangement entered between the Seller and the Purchaser for the agreed rate, terms, mode of payment and other conditions for transfer of a property whereas the sale deed is a transaction on or after conveying the property after payment of full sale consideration.   Ownership of the property cannot be transferred by Agreement to Sell, whereas on execution of sale deed, ownership gets transferred.  Entering into Agreement to sell is optional.  However, it is advisable to enter into Agreement to sell before the execution of a sale deed, because parties can change their mind even on day of registration of the sale deed.    Only by means of registered sale deed, the title of property can be transferred. Hence it is necessary to register the sale deed.


These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.


Q:- What is the difference between ‘Earnest Money’ and ‘Advance’ in Agreement to Sell?

Q:- What is meant by Defect Liability period in  a construction agreement?

Q:- I have taken some land on lease for 99 years and had con¬structed a multistoried building. The lease deed contains a clause. "Cannot assign, Underlet or sublet or part with the possession of the demised property without the previous permission of the lessor". The lease deed provided for construction of building, I have given portions of the building on leave and license to various busi¬nessmen. The lessor has issued a notice demanding subletting charges from me and has also marked the copies to licensees demanding to pay the subletting charges. What is the remedy? Can the lessor institute legal action against me and other licenses?

Q:- In connection with the purchase of a plot in a township on Mysore Road, I have paid major portion of the sale consideration to the developer. But the developer has not completed even half of the work and the progress work is unduly slow for various personal reasons of the builder. I have lost interest in the plot because of this. Please advise me how to get back my money with interest from the builder?

Q:- My wife and my children have thrown me out of the house because of some difference of opinion. I purchased a site and constructed a house there on out of my own funds and presently, they are enjoying this property. Can I Sell this house in occupation of my wife and children? Will they claim their share in the property?