7/29/2019 transfer of property act notes

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SALE VS- AGREEMENT FOR SALE

i. Sale is a present transaction or executed transaction. Whereas agreement for sale is a futuretransaction or executor transaction.

ii. Only the vendor has to sign the deed in case of sale. Whereas, both the proposed vendor andvendee must sign the document in case of agreement for sale.

iii. Registration is compulsory in case of sale if the value of the property is Rs. 100 or more.Whereas, in case of agreement for sale registration is optional.

iv. Stamp duty is paid based on the valuation of the property in case of sale. Whereas Rs. 10 stampduty is sufficient in case of agreement for sale.

v. Consideration is paid at the time of registration of the property in case of sale. Whereas,consideration is partly paid or partly promised in case of agreement for sale.

vi. A sale cannot be revoked once it is registered except by a Court order. Whereas in case ofagreement for sale it can be revoked by mutual consent between the parties.

vii. Time is not an essential factor for sale. Whereas time is one of the most vital factors in case ofagreement for sale.

viii. Sale is a right in rem. Whereas agreement for sale is a right in personum.ix. If there is any damage in the property after sale, the liability is on the buyer in the sale. Whereas

the same liability is on the seller in case of agreement for sale.

x. In case of sale the full right, title, interest on an immovable property is created in favour of thetransferee. Whereas in agreement for sale accrued interest, right, title is created in favour of the

transferee to the property agreed to be transferred.

SALE

VS- LEASEi. In sale the right, title, interest and ownership in respect of the property is transferred. Whereas

in lease the right of possession and right to enjoy the property is transferred.

ii. In sale the two parties are called vendor and vendee. In lease they are called lessee and lessor.iii. In sale the deed is the permanent document. Whereas in lease the document is of temporary

nature which is bound to terminate with the expiration of the lease period.

iv. In sale the stamp duty is to be paid according to the proportion of the value of the property.Whereas in lease stamp duty is calculated according to the amount of annual rent to be paid by

the lessee.

v. In sale the consideration is paid at the time of registration and in terms of money. Whereas inlease consideration is paid monthly, half-yearly, or annually either in cash or in kind.

vi. In sale, only the vendor has to sign the document. Whereas in lease the lessor and lessee shouldsign the document.

vii. In sale registration is compulsory for properties of valued above Rs. 100. However, for leaseregistration is compulsory if the duration is for a year or more.

viii. In sale, a sale deed with conditions is ambiguous. However in lease, terms and conditions are anintegral part of it.