Академический Документы
Профессиональный Документы
Культура Документы
There is a practise among many to avoid the sale agreements and to go directly
for sale deeds. This is very risky. Agreement to sell is required to avail the bank
finance. Apart from availing finance without a sale agreement nobody is bound to
execute sale deed and convey the property, who may back out at the last
moment. Though the purchaser had made all the arrangements for the
consideration amount and stamp duty the vendor may back out if he finds
another purchaser for better consideration. Likewise, even the purchaser may
also back out if he finds similar property for lesser consideration. The sale
agreements bind all the parties to perform the contract.
So far as first question is concerned Sec 40 of Transfer of Property Act states that
Where a third person is entitled to the benefit of an obligation arising out of
contract and annexed to the ownership of immovable property but not amounting
to interest therein or easement thereon, such right or obligation may be enforced
against a transferee with notice thereof
Ex: A Contracts to sell a house to B while the contract is still in force he sells
the same house to C who has notice of the contract.
contract against C to the same extent as against A. From this we find that, the
purchaser with notice of a previous contract for sale of the same property is in
In this regard Sec. 53-A of the T.P, Act 1882, provides that:1. The transferor i.e., seller has agreed to sell for consideration any
immovable property.
2. Such agreement is in writing and signed by him.
3. The contract provides for taking possession of the property before
execution and registration of sale deed.
4. In part performance of the contract, the seller has put the purchaser in
possession of the property agreed to be sold.
5. The purchaser under agreement being already in possession continues in
possession in part performance of the contract, provided that the
purchaser has done some act in furtherance of contract.
6. The purchaser under agreement has performed or is wiling to perform his
part of the contract.
purchases the property with notice of prior agreement of sale his right; is
subject to such prior agreement to sale.