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CA VK Dwivedi (Job)     11 March 2011

Please advise: Agreement to Sell and Sale Deed

Hello Everyone,

I understand that there is difference between Agreement to sell and Sale. but do not know the intricacies.

When I bought house i signed "Agreement to Sell" with the builder. does this amount to Sale (i.e i am legal owner of the house)


The Agreement to Sell has to be followed by Sale Deed/ Conveyance of Sale or somthing like that in order to complete the sale so as to become legal owner.

Please Advise. I would appreciate if you could advise what exaclty the legal procedure when some goes on to buy house from contractor/ builder. This will help me to make other people aware of malpractices adopted by builders/ contractors.

Thanks in advance.

Vikash Dwivedi


 3 Replies

A Manjunath (CFO)     11 March 2011


When u try to buy a flat which is yet to be constructed u will sign on two Legal Papers one is Agreement to sell -this will be for an undivided share in the Land and Construction Agreement which will be for ur flat and ur share in the common areas in the Building . both these agreements will only give u a right nothing physcial.


When the building is complete the builder and u will make an Sale deed based on the agreements mentioned above with this u will get physical and legal possession of ur flat, common area share and certain % in the undivided land.

Hope this will help u.


Warm Regards

CA Manjunath A

K S Narayana Rao (District Registrar)     11 March 2011

Dear friend,

You will get sale deed  registered the share of site, common area, etc., rights You will also register agreement with builder to construct your flot. All this is for first time new apartments new constructions only. At second after finishing thf flot that is old flot by way of Sale deed you transfer. 

CA VK Dwivedi (Job)     11 March 2011

Dear Manjunath and Kaku Thank you Very much, for the valuable information and quick reply.


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