An agreement to sell is not a sale. It cannot be treated as a complete transfer or conveyance. An agreement to sell is said to be have been executed, when a proposed seller enters into an agreement with a proposed buyer for the sale of an immovable property. It broadly records the terms of sale such as consideration, description of property, details of buyer and seller, etc. The purpose of executing an agreement to sell is to reduce to paper the terms of the deal and bind the proposed buyer and seller to the commitment of transfer of immovable property pending execution of sale deed.
An agreement to sell is a binding contract and can be specifically enforced in the event of default by either party, through the process of law.
