An agreement to sell is an important document
in the process of sale/purchase of property. The agreement
contains acts. It binds them to the terms and conditions agreed
As against this, a sale deed is a written document executed
by the buyer and the seller. It gives details on how the seller
got the property, at what price he is selling the property,
the sale consideration amount received, assurance to the purchaser
that the property is free from any encumbrances, indemnity
clauses etc. the sale deed is executed by both the seller
and the purchaser and is registered in the office of the registrar.
It is executed subsequent to the agreement to sell, and is
based on the terms and conditions contained and agreed on
while entering into the agreement to sell.
Agreement to sell precedes execution of a
sale deed. The subsequent sale deed is based on the agreement
to sell. The agreement is singed and executed by the seller
and buyer on a non-judicial stamp paper. As such, it has legal
value and can be produced as evidence.
Agreement to sell is the base document an
which the conveyance deed is drafted. Every document of transfer
of an immovable property by way of sale would be preceded
by an agreement to sell. Usually, an agreement to sell is
in writing. Although it may be oral, because of attendant
risks, it is always in black & white.
Amongst other things, an agreement to sell contains:
The provisions of such an agreement consists of the procedure
to be followed leading to the execution of the conveyance
or sale deed. Agreement to sell is a very important document.
It records the understanding reached between the parties,
which is binding on both. After making preliminary enquiries,
the parties negotiate the price as well as them other terms
and conditions, which form part of the agreement to sell.
An agreement to sell protects the interests of both parties.