The above definition makes it clear that a contract of sale contains a promise of future transfer of a property in question if certain conditions are met. This agreement itself therefore does not create any right or interest in the property for the proposed buyer. (e) When the seller does not provide free ownership at the time of performance of the deed of purchase. At the time of signing the sales contract, the buyer pays X amount in the form of token money. The standard clause is agreed that if the buyer leaves the company, the total amount of the tokens is cancelled by the seller. I would suggest adding another line in this clause that if the seller does not withdraw from the transaction, the seller returns the amount of tokens paid by the buyer with the corresponding amount as a penalty. If this clause is not fixed, the seller will continue to look for a new buyer who can pay more. He will cancel the agreement if he gets a new buyer at a higher price before the execution of the deed of sale. Even if the signing of the sales contract does not mean that the sale is over, it is a decisive step in this direction. For this reason, buyers need to know precisely the conditions set out in the agreement. The real estate sales contract is the most important document.
It is different from sale deed, although in some cases the sales agreement is registered as “Sale Deed”. The sales contract contains conditions of sale agreed between the seller and the buyer for the sale of real estate. It is legally binding on both parties. It also indicates the date on which the transaction will be concluded. For laymen, the sales contract is a roadmap on how the real estate transaction is concluded. On the other hand, the deed of sale is executed at the time of the actual transfer of ownership, i.e. the transfer of ownership from the seller to the buyer. The Indian Supreme Court ruled in 2012 in the case of Suraj Lamp & Industries (P) Ltd (2) v. Den Staat Haryana, while dealing with the validity of sales of real estate made by proxy, as follows: In the event of the seller`s failure to sell or hand over the property to the buyer, the buyer is entitled to a specified benefit 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 service from the buyer.
In accordance with the Indian Registration Act of 1908, any agreement relating to the transfer of shares in immovable property with a value of more than one hundred rupees must be registered. Therefore, if you have purchased real estate as part of a purchase agreement without a correct deed of sale following, you will not get any right or interest in the property that would be transferred as part of the purchase agreement. Signing a sales contract becomes important given several factors. First, it is legal proof of the conclusion of an agreement between the buyer and the seller on the basis of which, in the event of a dispute, the future action will be decided. Even if you apply for a home loan, the bank would not accept your application until you sign a sales contract. 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. The clause should make it clear that the amount of the contract also includes the transfer of all deposits paid by the seller for the connection to electricity, the connection to water, to the community of owners, to the affiliation to the clubhouse, to the affiliation to the gym, to the contribution to the decrease of the associative fund, etc.. .