Real estate has greater importance for a sales contract, mainly because these sales are complicated issues that require many legal documents and procedures. This requires a detailed understanding and description of the entire procedure and the roles of the parties. When selling a property, the first step is to create a sales contract. Apart from the limited right granted to assignees under § 53A, any sale that does not meet the requirements of § 54 and 55 of the « Transfer of Ownership Act » does not transfer title and does not transfer shares of the property to the buyer. A purchase agreement or a contract of sale does not give you any rights or interest in the property you are going to buy. On the other hand, a deed of sale gives you (buyer) all rights and interests in the property. The minimum price at which stamp duty is payable in the event of a transfer of real estate is called the Government Circle rate. If the price paid by a buyer is lower than the county rate, stamp duty will be paid on the county/government rate. In general, state governments charge stamp duty and registration fees on the indicated value or county/government rate, whichever is higher. After stamp duty, 1% of the value of the property is charged as a registration fee to be paid for the registration of the instrument. Let`s understand this in a simpler way. Suppose you bought a property under the purchase agreement and you think it will give you title to the property, then that`s not true.
Only a deed of sale in due form can entitle you to a property. Without a deed of sale, you cannot prove that the property belongs to you. With these documents, all other documents necessary for the purchase contract must be attached. This shows the willingness of both parties to sell and buy a property in question and concludes in the preparation of the actual deed of sale. This cannot therefore be called a deed of sale, as it does not create any rights to the property for the buyer. As he cooled down after a good game of tennis, Siddharth Agnihotri, an architect by profession, told his friend Yash about moving to a new home. During the discussion, which covered various topics, the legal aspect of a « purchase contract » and a « deed of sale » was discussed. Knowing that the two are not the same thing left Siddharth stunned. […] You with all aspects of your purchase/sale of a property – from drafting the sales contract to registering it on your behalf….