sale agreement
An agreement for sale (agreement to sell) records the parties' promise to execute a sale deed later, usually on payment of the balance price and clearance of title. Section 54 of the Transfer of Property Act, 1882 says a contract for sale of immovable property does not of itself create any interest in or charge on the property. It gives the buyer a personal right to sue for specific performance.
A buyer put in possession under a written agreement may resist the seller's suit for possession by the doctrine of part performance (s.53A), but since 2001 such an agreement must be registered for this purpose (s.17(1A), Registration Act). In Suraj Lamp the Supreme Court held that sale agreements combined with a power of attorney or will do not transfer title.
Example
Since the buyer held only a sale agreement, he had no title and his remedy against the defaulting seller was a suit for specific performance.
In Indian law
- Sections 53A and 54, Transfer of Property Act, 1882; Section 17(1A), Registration Act, 1908
- Suraj Lamp & Industries v. State of Haryana, 2011 INSC 739: an agreement to sell does not convey title
See also
specific performance · part performance · conveyance · title
Read more in the study notes
- Public speaking, body language in presentation, influencing and conveyancing (Business Communications)
- Place of suing (sections 15 to 21A) (Civil Procedure Code and Limitation Act)
- Unlawful consideration and object; e-contracts (Contract I)
- Specific performance of contracts (Contract I)
- Contract of sale, conditions and warranties (Contract II)
- Conveyancing principles and the sale deed (Drafting, Pleading and Conveyance)