When it comes to real estate transactions, two terms that are often used are conveyance on sale and agreement for sale. While they may sound similar, there are some key differences between the two.
Conveyance on Sale
Conveyance on sale refers to the legal transfer of ownership of a property from one party to another. This can be done through a sale deed or through a gift deed if the property is being transferred as a gift. In most cases, conveyance on sale requires the payment of a certain amount of money, which is typically referred to as the sale price.
The process of conveyance on sale involves several important steps. These may include:
1. Verification of property ownership: Before the conveyance on sale can take place, it is important to verify that the seller actually has the legal right to transfer ownership of the property.
2. Preparation of sale deed: Once ownership has been verified, the sale deed must be prepared. This is a legal document that outlines the terms of the sale, including the sale price, any conditions attached to the sale, and the date of transfer of ownership.
3. Registration of sale deed: The sale deed must be registered with the appropriate government agency, typically the Sub-Registrar of Assurances. This ensures that the transfer of ownership is legally recognized and recorded.
Agreement for Sale
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An agreement for sale, on the other hand, is a contract between the buyer and seller outlining the terms of the sale, but ownership of the property is not actually transferred until the conditions of the contract are met. This means that the buyer does not immediately become the legal owner of the property after signing the agreement for sale.
The process of agreement for sale may involve the following steps:
1. Negotiation of terms: The buyer and seller negotiate the terms of the agreement for sale, including the sale price, payment schedule, and any conditions attached to the sale.
2. Execution of agreement: Once both parties have agreed on the terms, the agreement for sale is executed and signed.
3. Payment of consideration: The buyer typically pays a certain amount of money, known as the consideration, to the seller as a token of their intent to purchase the property.
4. Fulfillment of conditions: The buyer must fulfill any conditions outlined in the agreement for sale, such as obtaining financing or completing any necessary inspections.
5. Execution of conveyance on sale: Once all conditions are met, the conveyance on sale process can begin and ownership of the property is transferred to the buyer.
While conveyance on sale and agreement for sale are both important steps in a real estate transaction, it is important to understand the differences between the two. A conveyance on sale is the actual transfer of ownership, while an agreement for sale is a contract outlining the terms of the sale that must be fulfilled before ownership can be transferred. By understanding the different processes involved, buyers and sellers can ensure a smooth and successful transaction.
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