Difference Between Sale and Agreement to Sell
Difference Between Sale and Agreement to Sell
| Aspect | Sale | Agreement to Sell |
|---|---|---|
| Definition | A Sale is a completed contract where the ownership (title) of the property is transferred immediately from the seller to the buyer. | An Agreement to Sell is a contract where the seller agrees to sell the property to the buyer at a future date or on fulfillment of certain conditions. Ownership is transferred later. |
| Transfer of Ownership | Ownership passes immediately on execution of the sale. | Ownership passes only after the sale is completed in the future. |
| Type of Contract | An executed contract (complete and final). | An executory contract (to be performed in the future). |
| Possession | Usually, possession is delivered immediately or as agreed. | Possession may or may not be delivered immediately; depends on terms. |
| Rights of Parties | Buyer immediately gains rights of ownership and can claim possession. | Buyer has a right to demand transfer of ownership later but does not yet own the property. |
| Legal Remedies | Buyer can enforce sale and claim ownership rights immediately. | Buyer can sue for specific performance or damages if seller fails to complete sale. |
| Examples | Buyer buys a flat and gets registered ownership papers on the same day. | Buyer signs an agreement to purchase a flat that will be handed over after construction. |
In brief:
Sale = Ownership transfer happens now.
Agreement to Sell = Ownership transfer promised for the future.
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