Simply put, a subsal sale is the secondary sale of a unit before it is completed. In the event of the seller`s failure to sell or hand over the property to the buyer, the buyer is entitled to certain services under the provisions of the Specific Repairs Act 1963. A similar right is available for the seller under the contract to receive a specific service from the buyer. A subsalt is when A contracts to sell a property to B, but before completing the purchase of A, B then contracts for the sale of the property to C. There are two purchase contracts (A–B and B–C). Completion can be done either by a single transfer (A-C on the instruction of B) or by two transfers (A-B and B-C). An assignment occurs when A contracts with B and B then transfers the benefit (but not the burden) of the contract to C. (This must be distinguished from a novation, where A contracts with B, who then transfers (by novation) his rights and obligations from the contract to C). Completion is then done by a single transfer from A to C. In a cool market (like now), potential buyers might discover undersalting units that offer good value for money on otherwise exhausted projects.
What the purchase contract creates is a right for the buyer to buy the property in question under certain conditions. Likewise, the seller receives the right to receive the consideration from the buyer in accordance with its part of the General Conditions. Signing a purchase agreement becomes important in light of several factors. First, it is legal proof of the conclusion of an agreement between the buyer and the seller, on the basis of which the future course of action will be decided in the event of a dispute. Even if you apply for a home loan, the bank will not accept your application until you sign a purchase agreement. A deed of sale is a legally favorable document that proves that the seller has transferred absolute ownership of the property to the buyer. Through this document, the rights and shares of ownership are acquired by the new owner. A deed of sale usually consists of the following information: The Supreme Court of India in 2012 ruled in the case of Suraj Lamp & Industries (P) Ltd (2) v. The State of Haryana, while dealing with the validity of sales of real estate made by proxy, as follows: Thus, in cases where you have purchased and owned property under a purchase contract, title deed remains the property of the developer, unless a deed of sale has subsequently been signed and registered under the Indian Registration Act. .