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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:- If there are both agreements to Sell and Sale deed with regard to a common property and sale deed has been executed, then which of the two, i.e. sale deed or agreement to sell should be given weight age?

Q:- I am resident of Bangalore and I have few questions on real estate in Bangalore. I heard there is a GO passed by Karnataka government, banning all the registrations process by CMC. Is this GO applicable only in the city of Bangalore or whole of Karnataka? Has this been lifted or still in place? Do I have to pay VAT and Service Tax if I book apartment from a builder? The apartment builder told me that there will be a construction agreement and a land agreement. Since, the construction agreement more is like a service rendered by builder to the buyer, can I just buy Service tax on the construction cost?

Q:- Is it possible to execute a sale deed on the basis of a Power of Attorney executed in foreign country before the India Embassy and duly adjudicated by the Collector of Stamps in India? 

Q:- I purchased a property and the vendor has executed the Sale Deed in favour of me. Kindly enlighten me whether I have to preserve the agreement entered with the Vendor as a document along with the sale deed?

Q:- I have entered into an agreement to purchase a property at Hongasandra which falls under the area of Bommasandra CMC.  The party is having CMC Katha, tax paid receipts. I have paid 50% of the sale price. Now, the Sub-registrar has refused to register the property. My agreement is going to lapse within one month.  What should I do in this situation?