What is an Agreement to Sell / Agreement of Sale?
An agreement of sale constitutes the terms and conditions of sale of a property by the seller to the buyer. These terms and conditions include the amount at which it is to be sold and the future date of full payment.
Being an important document in the sale transaction, it enables the process of sale to go through without any hurdles. All the terms and conditions included in the agreement of sale must be understood thoroughly by both the parties and obeyed throughout the sale process till the time the sale deed is made. Agreement of sale is the base document on which the sale deed is drafted. The sale deed is the document prepared at the time of full payment made by the buyer and when the actual transfer of the property takes place.
An agreement to sell is an important document in the process of sale and purchase of the property. This agreement contains the terms and conditions agreed upon between the parties and binds them. An agreement to sell is the basic document on which a conveyance deed is drafted. It is always advisable to have an agreement to sell in writing.
It precedes the execution of a sale deed. This agreement is signed and executed by the seller and buyer on a non-judicial stamp paper. It has legal value and if need be can be produced as evidence in a court. The agreement specifies the procedures to be followed leading to the execution of the conveyance or sale deed. It records the understanding reached between the parties and is binding on both.
An agreement to sell protects the interests of both parties and spells out in clear terms the conditions under which the seller is intending to sell the property and those under which the buyer is intending to purchase it. This facilitates smooth culmination of the transaction without dispute, confusion and misunderstanding.