Agreement to Sell

Also known as: ATS, sale agreement

An agreement to sell is a contract to transfer property at a future date on agreed terms - it creates an enforceable right to seek conveyance but does not itself transfer ownership.

The distinction matters because buyers frequently treat an agreement to sell, especially a notarised one, as though it were a conveyance. It is not. Ownership passes only on execution and registration of the sale deed. An agreement to sell does give the buyer the right to sue for specific performance, and where possession has been delivered it can attract protection under Section 53A of the Transfer of Property Act.

What it proves

A contractual right to obtain conveyance on the stated terms.

What it does not prove

It does not transfer ownership, and a buyer holding only an agreement to sell is not the owner.