FAQs - Sale of Property

Q1. What is a Sale? Ans - Sale is a transfer of ownership in exchange for a price paid or promised or part paid and part promised.Back To Top

Q2. What is an immovable property? Ans - : Immovable property can be defined as including land benefits, out of land (interests in land) and things attached to the earth or permanently fastened to anything attached to the earth. Q3. Is it mandatory to have a written Sale Agreement? Ans - Although, law doesnt orders to have such a written agreement, but, practically, it is advisable to enter into a written contract. This ensures that both the contracting parties perform their part of obligations. Moreover, oral agreements cannot be proved in court. Q4. Is it necessary to get the Sale Agreement registered? Ans - Yes, it is mandatory to get the agreement registered. If, in any case, it is not registered, as required by law, then the title is not legally passed on to the transferee and the deal is not considered to be a Sale. Back To Top

Q5. What is a Contract of Sale? What constitutes the contents of contract of sale?

Ans - A contract for the sale of immovable property is a contract laying down that the "Sale" of such property shall take place on the terms settled between the parties in the said contract. It includes the following clauses: 1. Property description. 2. Personal contact details of the signatory parties: seller and buyer. 3. Negotiated price 4. Manner and type of payment. 5. Description of the title of the transacting property. 6. Stipulated time period within which the transaction has to be completed. 7. Provisions of the payment of the stamp duty. 8. Registration and execution of the sale deed. Q6. Does the contract transfers any charge of ownership of property? Ans - No, it does not transfer the ownership of the property, but gives a sort of obligation with respect to the ownership of property. Q7. What is the importance of an Sale Agreement? Ans - A sale agreement outlines the terms and conditions under which sale is completed. In case, there is no written agreement, the deal is governed by "Transfer of Property Act". Q8. What is price? Ans - Price, meaning money, is an important ingredient for all transactions of sale. The transfer is not regarded a "Sale" in the absence of price or the consideration. It can be paid in cash or be partly paid and partly promised to be paid in future.Back To Top

Q9. What is a latent defect in property? Ans - A latent defect is a defect which cannot be discovered by the buyer with ordinary diligence. Q10. Which all acts govern the sale of property? Ans - The following acts govern the sale of property: 1. Indian Contract Act, 1872 - It governs who all are competent to enter the contract of sale of property. 2. Registration Act, 1908 - It provides for the registration of instrument of sale during sale of property. 3. Transfer of Property Act- It defines the rights and duties of buyers and sellers before and after the sale. Q11. What if a sale of property is not registered with the concerned authorities? Ans - Then in that case, the title of the property is not considered to be transferred and the transaction is considered to be a legal sale of property. Q12. What precautions shall be taken before purchasing any property? Ans - Ascertain the owners; verify title deeds, link documents, encumbrances, and court attachments etc. under the advice of a Lawyer. Back To Top

Q13.What does the term 'Freehold Property' mean? Ans - When ownership rights for a piece of property are given to the purchaser for a price that property is referred to as Freehold Property.

Q14. Before purchasing property owned by a company, what aspects should be considered? Ans - Before purchasing property from a company, it is necessary to verify with the Registrar of Companies that the property is not mortgaged or is not being used as a security against a loan; otherwise it is not considered a freehold property. Q15.How can the authenticity of the documents be verified while entering into any sale purchase transaction? Ans - The authenticity of the documents brought into use can be rechecked by availing legal services of an advocate.