A Sale Agreement and Agreement of Sale have the same meaning and it is not different terms. Sometimes, we are confused with both the terms. Sale Agreement or Agreement of Sale is a legal document which is created between two parties such as seller and buyer and this agreement of sale contains the terms and conditions of sale of the property. This agreement also declares the amount at which the property is to be sold and when full payment will be made for the sale of the property. The parties to the agreement of sale must understand the laws, rules, terms and conditions of the agreement very clearly and they should obey the agreement of sale till the time of execution of the sale deed. It should be remembered that the Sale Agreement is not considered as a title document. After entering into the Sale Agreement both parties should obey the terms and conditions of the agreement and if any of the party violates the terms and conditions of the agreement then he or she is liable for the damage and he or she should pay the loses to the other party or the victim party can move to the civil court for relief. If the parties don’t create any Sale Agreement then there is high risk in their transactions because any of the parties can commit fraud with the other party. Nowadays we witness many disputes or problems relating to Sale of the properties and we have even seen that seller sale their properties to another person who is termed as a buyer and the buyer finds faults or disputes in the properties after the sale of the properties and he is left with no option except bringing legal action against the seller but it takes time to get a proper and fair judgement in his or her favour. So, it is better to create Sale agreement and check all the necessary documents of the property which is offered for sale.
Difference between Sale Agreement and Sale Deed:
|Sale Agreement is the promise to hand over the ownership of the property in the future by the seller.
|Sale Deed is the absolute conveyance of the ownership of the property to the buyer.
|It provides the right to the buyer to buy a property by obeying the terms and conditions of the agreement.
|It provides the right and all interest of the property to the buyer.
|It mentions all the terms and conditions under which property will be delivered to the buyer.
|It mentions all the details of the parties to the sale, address, ages and so on.
Steps to create and register Sale Agreement:
- Parties – There must be two parties to create the agreement. A party who promises to transfer the ownership of the property is known as seller and the party who purchases the property from the seller is known as a buyer. Both the parties are important to the agreement and no other person can act on their behalf to execute the agreement.
- Draft the Sale Agreement – Now, both the parties discuss the sale of the property such as the price of the property and other relevant points and when the parties agree to each other demands, they approach to a lawyer and draft the Sale Agreement. The parties include all the necessary points and demands in the agreement and then they draft the agreement.
- Print on Stamp Paper – It should be printed on the stamp paper to register the Sale Agreement.
- Witness – There should be two witnesses in the Sale Agreement. This Sale Agreement will have no importance if it does not include two witnesses.
- Signatures of the parties and witnesses – Both the parties to the agreement must sign the agreement and the two witnesses should also sign the agreement.
- The validity of the Agreement – The Sale Agreement is Valid until the execution of the Sale Deed. If any parties breach the terms and conditions of the agreement before the expiration date of the agreement then they have to pay damages for it to the victim of the agreement.
- Registration – The Sale Agreement should be registered by providing the necessary documents to the competent authority and then it will have its importance in the courts or before any competent authority and without registration of the Sale Agreement, it will have no importance and cannot be used as primary evidence.
- Stamp Duty – It should be remembered that for registration of the Sale Deed, the parties have to pay stamp duty to the government of West Bengal. In Municipal areas, the stamp duty is 6% of the Government Market Value of the property and in Panchayat areas, the stamp duty is 5% of the Government Market Value of the property in West Bengal.
- Registration Fees – There are specified registration fees to register the Sale Agreement. In Municipal areas, the registration fees are 1% of the government Market Value of the property and it is maintained in agreement with possession and in Panchayat areas, the registration fees are 1% of the Government Market Value of the property and this is maintained in agreement with possession and for the Sale Agreement without possession, the registration fees are Rs.7/- in West Bengal.
- Appear Before the Registrar – Now, appear before the registrar office to get the Sale Agreement registered, after paying all the fees and charges of the government of West Bengal. After paying the required charges the competent authority will process your agreement and after verification, they will provide you with the registered Sale Agreement.
So, you can follow the above steps to create a Sale Agreement and to register the same.
We can conclude that it is necessary to create Sale Agreement before Processing for the Sale Deed. This agreement protects both parties from different problems and offences. We have gathered important information about the Sale Agreement to make you understand the importance of it. It is seen that many people don’t give importance to this legal document and when they face major problems they run for legal assistance. So, before dealing with such matters consult with a lawyer to create a Sale Agreement. You should seek professional legal help for any legal procedures due to the high stakes and risks involved. For professional legal help, contact [email protected], leave a comment below or contact here.