When it comes to real estate transactions, there are a number of legal documents that must be signed in order to move the process forward. Two of the most commonly used documents are the agreement to sell and the agreement for sale. Though they may sound similar, they are actually two distinct legal agreements with unique implications for both the buyer and seller. In this article, we will explore the main differences between an agreement to sell and an agreement for sale, and what each one entails.
Agreement to Sell
An agreement to sell is a legal document that outlines the terms and conditions of a sale. It is usually executed between the seller and the buyer before the sale is completed. Once signed by both parties, the agreement to sell becomes a binding contract, and both parties are obligated to fulfill their respective duties as outlined in the document. The agreement to sell usually includes details such as the purchase price, payment terms, and closing date.
One important thing to note about the agreement to sell is that ownership of the property does not transfer to the buyer until the sale is complete. The agreement to sell simply outlines the terms of the sale and establishes the intent of both parties to complete the transaction.
Agreement for Sale
An agreement for sale, on the other hand, is a legal document that transfers ownership of the property from the seller to the buyer. It is executed after the agreement to sell has been signed and all conditions of the sale have been met. An agreement for sale is essentially a sale deed that is executed between the seller and the buyer. It includes details such as the purchase price, payment terms, and transfer of ownership.
One important difference between an agreement for sale and an agreement to sell is that the former transfers ownership of the property to the buyer, while the latter does not. An agreement for sale is a final and binding document, and once it is executed, the buyer becomes the legal owner of the property.
In summary, the main difference between an agreement to sell and an agreement for sale is that the former is a document that outlines the terms and conditions of a sale, while the latter is a document that transfers ownership of the property from the seller to the buyer. Both documents are essential in real estate transactions, and it is important for both parties to carefully review and understand the terms of each document before signing. A professional can help ensure the documents are written and reviewed properly.