An agreement of sale constitutes the terms and conditions of sale of a property by the seller to the buyer. These terms and conditions include the amount at which it is to be sold and the future date of full payment. Sale deed is the document prepared at the time of full payment made by the buyer and when the actual transfer of the property takes place. However in some states the sale agreement itself will be registered and will act as a sale deed.
An agreement for sale serves as a basis for a transaction to take place, providing a framework of how the transaction will proceed, what is included in the transaction, and, if necessary, what is excluded from the sale. It allows the buyer and seller of a particular asset to negotiate, and ultimately agree upon, a proper price. While not required for every transaction, SPAs are often used for large single purchases or frequent purchases across a specified amount of time.
Purchase and sales agreements contain detailed seller and buyer information such as full names, addresses, phone numbers and any co-signers who may be involved. It also provide the detail about the type of sale, dates of the initial agreement, any deposit paid, dates when other parts of the contract are to be completed, and the date of the final closing of the contract and transfer of ownership.