An agreement to sell is a critical document in property transactions. Many disputes arise due to poorly drafted agreements or misunderstanding of legal implications.
What Is an Agreement to Sell?
An agreement to sell is a legal contract where the seller agrees to sell property at a future date under specified terms. Ownership does not transfer until execution of the sale deed.
Difference Between Agreement to Sell and Sale Deed
An agreement to sell creates future rights, while a sale deed transfers ownership immediately. Both documents serve different legal purposes.
Why Agreement to Sell Is Important
It:
- Locks property price
- Sets payment schedule
- Records obligations of both parties
- Acts as evidence in disputes
It protects both buyer and seller.
Essential Clauses
Key clauses include:
- Property description
- Sale consideration
- Advance payment details
- Possession date
- Penalty and cancellation terms
Missing clauses can cause legal issues.
Registration and Stamp Duty
While registration may not always be mandatory, stamp duty is compulsory. Registered agreements carry stronger legal validity.
Common Mistakes to Avoid
Common errors include:
- Vague property description
- No penalty clauses
- No timeline for execution
- Ignoring encumbrance verification
These mistakes often lead to litigation.
Legal Remedies in Case of Breach
If the agreement is breached, the aggrieved party may:
- Seek specific performance
- Claim compensation
- Cancel agreement
Legal advice is crucial before action.
Online Legal Consultation for Property Agreements
Online lawyers help draft customized agreements, review clauses, and prevent costly mistakes.
Conclusion
A well-drafted agreement to sell safeguards property transactions. Legal scrutiny prevents disputes and financial loss.