In an Agreement for Sale, When Does Title Convey?
An Agreement for Sale is a legal document that outlines the terms and conditions of the transfer of ownership of a property from the seller to the buyer. It is an important document that both parties need to understand because it determines when the title of the property will convey. In this article, we will discuss when title conveys in an Agreement for Sale.
Title Conveyance in an Agreement for Sale
“Title conveyance” refers to the legal transfer of ownership from the seller to the buyer. In an Agreement for Sale, title conveyance happens when the buyer makes the final payment of the agreed-upon purchase price. At that point, the seller has to transfer the legal ownership of the property to the buyer by executing a conveyance deed.
In case the buyer is paying the purchase price in instalments, the seller will retain the title of the property until the buyer has made the final payment. Once the final payment is made, the seller must pass the title of the property to the buyer.
The conveyance deed is a legal document that transfers the rights, title, and interest in the property from the seller to the buyer. This document has to be executed by the seller and registered with the local Sub-Registrar Office. This registration is essential to establish legal ownership of the property and to prevent any future legal disputes.
Therefore, it is important that the buyer confirms with the seller that the property is free from any encumbrances or disputes before paying the final amount. The buyer should also ensure that the conveyance deed is properly drafted and executed before making the final payment.
Conclusion
Title conveyance is an essential aspect of an Agreement for Sale. It determines the legal transfer of ownership of the property from the seller to the buyer. In an Agreement for Sale, title conveys only when the buyer pays the final amount of the purchase price and the seller executes and registers the conveyance deed. As a buyer, it is important to ensure that the property is free from any encumbrances or disputes and that the conveyance deed is properly executed and registered before making the final payment.