The sales contract contains conditions of sale agreed between the seller and the buyer for the sale of real estate. It is legally binding on both parties. It also indicates the date on which the transaction will be concluded. For laymen, the sales contract is a roadmap on how the real estate transaction is concluded. On the other hand, the deed of sale is executed at the time of the actual transfer of ownership, i.e. the transfer of ownership from the seller to the buyer. Under the Transfer of Ownership Act, a contract of sale, with or without ownership, is not a transfer. Section 54 of the Transfer of Ownership Act provides that the sale of immovable property may be made only by a registered instrument and that a contract of sale does not generate interest or charges for its property. The above definition makes it clear that a contract of sale contains a promise of future transfer of a property in question if certain conditions are met. . .

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