An agreement to sell is a preliminary document that promises to transfer ownership at a future date, contingent on certain conditions being met, and sets out the terms of the sale. A sale deed is the final, legally binding document that transfers ownership of the property from the seller to the buyer. The agreement to sell typically precedes the sale deed and includes the intent to complete the transaction.

During a Sale, the purchase price is paid at the time the sale deed is executed. Conversely, an Agreement to Sell may involve payment in instalments or at a future date, as outlined in the agreement. A Sale represents a completed transaction with immediate ownership transfer. An Agreement to Sell is merely a commitment to transfer ownership later once specific conditions are satisfied.

In a Sale, the property's risk of loss or damage shifts to the buyer immediately. In an Agreement to Sell, the risk remains with the seller until ownership is officially transferred. A Sale deed requires registration and payment of stamp duty to validate the transfer. An Agreement to Sell generally does not need registration, though stamp duty requirements can vary by state.

Yes, an agreement to sell is legally binding as long as it fulfills specific criteria: It needs to be signed by both parties, include a clear description of the property being sold, and outline the terms and conditions of the sale. Additionally, it must be entered voluntarily and without undue pressure or coercion.

Once signed, the sale agreement becomes a legally binding contract that obligates both parties to adhere to its terms. If either party fails to comply with the agreement, the other party can pursue legal remedies, such as enforcing the contract, seeking damages, or canceling the agreement. It is executed with the mutual consent of both parties and includes all essential terms. However, the sale deed does not complete the final transfer of ownership.

• The names and addresses of the buyer and seller.
• A detailed description of the property or goods.
• The sale price and payment terms.
• The date of transfer of possession.
• Any conditions or contingencies related to the sale.
• Signatures of both parties.