An agreement of sale with possession in India is a legal document that outlines the terms and conditions of the sale of a property, where the buyer takes possession of the property either at the time of signing the agreement or shortly after, before the actual transfer of title through the registration of the sale deed. This agreement typically serves as a preliminary or intermediate document between the buyer and the seller, and it includes important details like the sale price, payment schedule, property description, and possession date.
What is the Sale Agreement with Possession Meaning?
In essence, a Sale Agreement with Possession can have the following key points:
The agreement specifies that the buyer is granted physical possession of the property, meaning they can enter and use the property, even though the ownership title has not been officially transferred yet (through the final sale deed registration).
The agreement outlines the amount the buyer has paid (or agrees to pay) for the property, including any advance payment made at the time of the agreement and the remaining balance to be paid.
While the buyer may gain possession, the legal ownership (title) is not fully transferred until the sale deed is registered with the relevant authorities.
The buyer assumes the risk of the property (like maintenance or damages) once possession is granted, but the seller typically remains the legal owner until the registration of the sale deed is completed.
The sale agreement helps protect both the buyer and seller by setting clear terms for possession, payment, and future transfer of title, reducing the likelihood of disputes.
While the sale agreement with possession provides the buyer with early use of the property, it does not fully confer ownership until the sale deed is executed and registered with the relevant authorities. It is crucial for both parties to ensure that all legal processes are followed to avoid future conflicts.
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The meaning of a sale agreement with possession is easy. It is an agreement or instrument that requires payment of the applicable stamp duty on a deed of conveyance. In simpler terms, it is an agreement that combines the sale transaction and the transfer of possession into a single contract.
In a Sale Agreement with Possession, the seller agrees to sell the property or goods to the buyer, and the buyer agrees to purchase them. At the same time, the seller also agrees to transfer possession of the property or goods to the buyer upon the fulfilment of certain conditions, usually the payment of the purchase price.
Get your sale agreement drafted by NoBroker’s expert advocatesRead More:
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What is the meaning of Sale Agreement with Possession?
Srilakshmi
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2023-06-27T09:00:14+00:00 2023-06-27T16:58:18+00:00Comment
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