WHAT IS AN AGREEMENT FOR PROPERTY?
An agreement as defined in Section 2(e) of the Indian Contract Act, 1872 is, “Every promise and every set of promises, forming the consideration for each other, is an agreement”(THE INDIAN CONTRACT ACT, 1872, 2016). Agreement for the property includes both sale and purchase of the property. A purchase and sale agreements are an agreement between the two parties, also called the buyer and seller. An offer to purchase is the conventional document controlling the agreement between the two parties.
The agreement for property embarks various rights and obligations on both the buyer and seller.
WHO IS A BUYER?
Any person, legal entity, or a company that is receiving, acquiring, and purchasing any property is known as a buyer.
WHO IS A SELLER?
Any person, legal entity, or a company that is conveying, disposing, and selling the property is known as a seller.
AGREEMENT OF SALE
If the transfer of property is on a future date and is subjected to terms and conditions, then it will be called as an agreement of sale/memorandum of agreement. An agreement of sale is a document containing terms and conditions of the sale of the property by the seller to the buyer. This document contains all the details related to the transfer of property, which includes the consideration, payment details, etc.
In the case of immovable property, the agreement of sale remains an important document because the sale deed depends on it. It is the foundation document for the sale deed. The sale deed takes place after the terms and conditions are fulfilled, full payment is made by the buyer, and when the actual transfer takes place.
The sale agreement gives the right to the buyer to buy the property only after fulfilling certain conditions.
AGREEMENT FOR PURCHASE
It is a legal document between two parties, i.e. a seller and a buyer. A seller is the one who wishes to sell a property, and the buyer wants to buy it. The agreement expresses the terms and conditions of the process of buying and selling and certifies that both the parties follow their promises.