As a professional, I am here to discuss a common confusion among property buyers and sellers – the difference between contract to sell and deed of absolute sale.
A contract to sell is a legal agreement between the buyer and the seller, indicating that the ownership of the property will be transferred from the seller to the buyer upon completion of the terms of the agreement. In simpler terms, it means that the seller is committed to sell the property to the buyer and will do so once the terms of the agreement have been met, such as the payment of the purchase price and transfer fees.
On the other hand, a deed of absolute sale is a legal document that signifies the final transfer of the ownership of the property from the seller to the buyer. It is a proof of full payment and a symbol of the buyer`s rightful ownership of the property.
The main difference between the two lies in the legal ownership of the property. In a contract to sell, the seller still owns the property until the terms of the agreement have been fulfilled, while in a deed of absolute sale, the buyer is the rightful owner of the property. Essentially, a contract to sell is a promise to sell, while a deed of absolute sale is proof of ownership transfer.
It is important to note that both documents are important in a property transaction, and it is advisable to have both in place to ensure that both parties are protected. A contract to sell provides a legal framework to ensure that the terms of the agreement are met, while a deed of absolute sale is the proof of ownership transfer. Both documents can protect the buyer and seller in the event of any legal disputes that may arise in the future.
In conclusion, a contract to sell and a deed of absolute sale are both important legal documents in property transactions. While a contract to sell is a promise to sell, a deed of absolute sale is the proof of ownership transfer. It is important to understand the difference between these documents to ensure the protection of all parties involved in the transaction.