Agreement to Sell Is Not a Conveyance: No Right in Property Without Suit for Specific Performance, Rules Supreme Court
In a landmark ruling, the Supreme Court of India has once again made it clear that an "Agreement to Sell" cannot be equated with an actual transfer of ownership or conveyance of property . Unless such an agreement is backed by a decree of specific performance , it does not give any legal title or enforceable ownership rights to the buyer. Case The case involved a property dispute where one of the parties relied on an unregistered agreement to sell as proof of ownership. The matter reached the Supreme Court after lower courts offered conflicting interpretations regarding the legal validity of such agreements. The apex court was asked to decide: Can a simple "agreement to sell" grant ownership rights in property without the buyer having first filed and won a suit for specific performance? Supreme Court’s Ruling The Supreme Court answered with clarity: “An agreement to sell is not a conveyance. It does not, by itself, transfer any title in the p...