There would not be any problem in the transaction merely because share certificate has not been issued
there is no difference from legal stand point if you use transferor / transferee or vendor and purchaser
Vendor/Purchaser or Transferor/Transferee?
Hello, 1> I am buying a flat from someone who was the second owner. His agreement with the first owner says he was the Purchaser and the first owner was the Vendor. Now for my transaction, my agreement maker says once society is formed, we cannot use the words Vendor/Purchaser and it will need to be Transferor/Transferee. Can some expert please advice if this is true and whether this difference has any effect from a legal standpoint if my agreement says Transferor/Transferee and not Vendor/Purchaser? 2> Also, society has been formed but shares have not yet been alloted to the seller from whom I am buying. Would this be any problem after the transaction?
Asked 4 years ago in Property Law
Religion: Hindu
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8 Answers
1. It really does not matter what term is used to denote the parties. However the terms transferor and transferee are more appropriate
2. Not a problem
1. It is his wrong presumption.
Once a property is sold by a registered sale deed, the seller is vendor and the buyer is vendee.
2. The seller's shares are to be transferred to your name, therefore you may insist him to acquire the same and get it transferred to your name.
It's almost the same you can use any term only buying and selling averments must be clear. He needs to seek share certificate or noc from society
Thanks everyone for your replies. Another question please: I understand that an Agreement For Sale is not really the final binding sale document and a Sale Deed makes the transfer legally binding. But my broker told me that most people who buy property don't get a sale deed done and an agreement for sale is sufficient to conclude the transaction. Is it true that an agreement for sale has no value at all in front of the law? Could you give me some examples of what worst could happen in future if a sale deed is not executed and only agreement for sale is done and we move to the new residence? I appreciate your time.
Asked 4 years ago
Broker is not a lawyer
so please disregard what he says
an agreement for sale has terms which are stated to be complied with in the future
whereas in a sale deed the terms are stated to happen in present
for example -
in an agreement for sale -
the vendor/transferor agrees to sell and convey to the purchaser/transferee
whereas in a sale deed -
the vendor/transferor hereby sells and conveys to the purchaser/transferee
thus an agreement for sale is only like a MOU in which terms are set out as to how the sale will happen. If the terms are breached then the sale does not happen
Whereas a sale deed is the final transfer document which actually conveys the property from seller to buyer
Agreement for sale operates as sale deed when full payment is made and possession delivered by the seller
you don’t need to execute sale deed in such cases
The agreement for sale is not the title document to prove your title to the property.
The registered sale deed is the document which will uphold the title of the property who has purchased this property by this registered sale deed.
The broker in order to sell the property may tell plenty of lies as if true and would vanish from the scene after the sale is completed and he getting his commission, therefore you better obtain a legal opinion from a lawyer before purchase of the immovable property.
If there is no registered sale deed on your name you cannot be considered as legal owner to the property hence if you move into the property and take possession also on the basis of the agreement of sale, you can be considered as an illegal occupant or even criminal trespasser.
- Since you are going to purchase from the last purchaser , then the sale deed should show him as Seller/vendor /owner of the property and not only transferor.
