Understanding the Difference Between Agreement for Sale and Sale Deed in Maharashtra
Real estate transactions in Maharashtra, India, involve legal documents that signify different stages of property transfer, notably the Agreement for Sale and Sale Deed. These documents hold distinct legal implications and serve different purposes in the property acquisition process.
Agreement for Sale:
An Agreement for Sale, governed primarily by the Indian Contract Act, 1872, is a preliminary agreement outlining the terms and conditions between the buyer and seller before the final sale. In Maharashtra, this agreement is commonly termed "Agreement to Sell" and is drafted under Section 54 of the Transfer of Property Act, 1882.
Section 4 of the Indian Contract Act, 1872: This section defines the term "Promissory Contract." In the context of an Agreement for Sale, it signifies that both the seller and the buyer promise to perform certain actions in the future. The agreement typically includes details such as the property description, sale price, payment schedule, possession date, and any other specific terms and conditions agreed upon by both parties.
Section 2 of the Maharashtra Ownership of Flats Act, 1963: This section deals with the sale of flats in a building. If the property involved in the transaction is a flat in a building, this Act may apply. It emphasizes the importance of obtaining the consent of the society or relevant authorities before transferring ownership.