The ownership of a property must be clear and marketable and it is said that as such it is only at the time of execution of the deed of sale. In practice, however, buyers execute the purchase contract as a precaution, although they are aware that it does not create title to a property. A deed of sale is considered an authentic deed and also establishes a clear title to the property as it is a mandatory registrable document under section 17(1) of the Registration Act 1908. However, under Article 13 of the 20161 RERA Act, a purchase contract must be registered. However, this is not the case with the Registration Act 1908. Therefore, the validity of the sales contract always becomes an unresolved conflict. The disadvantage of not registering a purchase agreement was particularly highlighted by the Supreme Court in its judgment in TG Ashok Kumar v. Govindammal (2010). A purchase contract is a contract for the sale of a property in the future. This agreement defines the conditions under which the property in question will be transferred. The Transfer of Ownership Act of 1882, which governs matters relating to the sale and transfer of home ownership, defines the purchase contract or a purchase contract as follows: Remember here that both parties must comply with the conditions set out in the purchase contract.
Any party that fails to comply with any of the terms and conditions prescribed in the Agreement may be brought before the courts if the other party so wishes. All interested parties must also ensure that this document can be cited as evidence of law in court and that all those who have agreed to abbreviate its terms are legally obliged to do so. A purchase agreement can generally be defined as an agreement agreement that encompasses the terms of a potential purchase agreement as well as the consideration offered and payment details. When selling the property, this is one of the important documents, because the deed of sale is based on it. It allows the sales process to run smoothly by explaining it step by step. This helps build a better understanding between the parties and their specific roles in sales. This question arises because the registration of documents is usually done to guarantee the buyer a clear right and ownership of the property. A sales agreement as such does not clearly establish ownership of the property. The Supreme Court ruled in Durgawati Devi v. Union of India2 that the performance of the purchase contract does not transfer ownership/title to the property and that ownership/ownership is only transferred by a transfer title. Any transaction related to the transfer of real estate can only be carried out through a registered document. If a real estate transfer is intended for the future and there are terms and conditions, this is called a purchase contract.
This will be a sale when all the conditions are met or the ownership transfer period has expired. A deed of sale is formed when there is an immediate transfer of ownership. Get to know the differences clearly from here. Later, Sharma refused to comply with the agreement on the grounds that no definitive, legal and binding purchase contract had been registered by the parties and that the existing contract could not be obtained as proof of the alleged contract. It is clear from the above definition that a purchase contract contains a promise to transfer a property in question in the future if certain conditions are met. This agreement itself therefore does not create any right or interest in the property for the proposed buyer. The verdict said: “If all purchase contracts are compulsorily registered, it will go a long way in preventing the generation and circulation of black money in real estate matters, as well as the undervaluation of documents for stamp duty purposes….