logo logo

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.