Sale Agreement of land or building is an ordinary agreement in which one party promises to sell the landed property or building to another and the other person agrees to buy it. It contains a promise to sell and acceptance to buy. It is a future event.
In Kerala, the Sale Agreement can be entered even orally and if in writing that should be in 100 Rupees stamp paper. It need not be registered in a register office.
Even then if the parties wish they can register it in the Sub-Registrar office by paying sufficient amount of stamp duty.
Normally a Sale Agreement is valid for 3 years from the date of its signing.
Only a major can sign into a Sale Agreement.
Basically A sale Agreement shall be an undertaking from either side to execute a Sale Deed.
A sale Deed is much different from Sale Agreement.
In a Sale Deed, the title of the property shall be transferred and generally along with the possession. A Sale Deed is to be registered with the Sub-Registrar at his office, within the jurisdiction where the property actually situates.
Sufficient stamp duty according to the value of the property is to be paid for the registration. In addition to the Stamp duty 2% of registration fees also to be remitted at the time of registration.
It is very difficult to cancel registered Sale Deed whereas a Sale Agreement can be terminated for the reasons set forth in the Sale Agreement.