Secondly, the deed of sale includes information about both parties with their details of age, addresses and the like, while the purchase contract focuses only on certain conditions. Third, the deed of sale reserves rights and property to the new owner. However, a purchase contract gives the buyer rights based on his satisfaction of the listed conditions. Stamp duty and registration fees must also be submitted and collected for the execution of the deed of sale. On the other hand, the purchase contract precedes the deed of sale with the signature of the two dealers on an extrajudicial stamp paper. These are just a few shortened points of difference. 2.What happens if we want to cancel our purchase contract? Even if the signing of the purchase contract does not mean that the sale is complete, it is a crucial step in this direction. For this reason, buyers should be fully aware of the conditions set out in the contract. What the purchase contract creates is a right for the buyer to buy the property in question under certain conditions. Likewise, the seller receives the right to receive the consideration from the buyer in accordance with its part of the General Conditions. It is clear from the above definition that a purchase contract contains a promise to transfer an asset in question in the future to meet certain conditions.

Thus, this agreement itself does not create any right or interest in the property for the proposed buyer. The purchase contract may or may not lead to an actual sale of the property in question. Some of the stamp duty laws, such as the Maharashtra Stamp Act, consider an agreement to sell a property on the same basis as an appropriate deed of transfer and are therefore subject to the same stamp duty applicable to the appropriate deed of transfer or sale of a property. Because of these provisions that require the payment of stamp duty on a contract of sale, people mistakenly perceive a contract of sale as an appropriate deed of sale. The Transfer of Ownership Act 1882 regulates matters relating to the sale and transfer of immovable property. According to § 54 TPA, the contract for the purchase of immovable property is a contract that carries out a sale of such immovable property under the conditions established between the parties. It also provides that it does not itself create interest or costs on the property. In addition, the Supreme Court insisted on the requirement of the purchase agreement and gave way to the idea that the allocation of time for a dwelling on the date specified in the purchase contract should be taken into account rather than the date of registration of the project under the Real Estate Act. In Suraj Lamp and Industries Limited v.

State of Haryana, the Supreme Court of India concluded in 2012 that the transfer of ownership of ownership by general proxy (surrogacy), will and contract of sale has become a common practice, mainly to avoid the payment of duties, taxes and other fees as legally applicable, which has catastrophic effects on society as a whole. The Supreme Court referred in Narandas Karsondas v. S.A. Kamtam and Another and Rambaran Prosad v. Ram Mohit Hazra further noted that section 54 of the Transfer of Ownership Act 1882, a purchase agreement, does not in itself create interest or charges on real estate. The Supreme Court, which overturned the Delhi High Court`s statements in asha M Jain v Canara Bank, ruled that such a transfer (by purchase contract, will and surrogacy) cannot be considered a valid means of transferring real estate and can only be transferred or transferred by a deed of sale (which must be properly stamped and registered in accordance with legal requirements). The sale of real estate is associated with complex procedures. For a hassle-free transaction, all parties need to understand the entire sales process, including knowing the differences between a sales contract and a deed of sale from a legal perspective.

With the exception of the limited right granted to buyers under section 53A, any sale that does not meet the requirements of sections 54 and 55 of the “Transfer of Ownership Act” will not transfer ownership or transfer shares of ownership to buyer[…].