**"Transfer Doesn't Include Agreement of Sale: Distinction Between Agreement of Sale and Sale"**

A bare reading of the definition of "Transfer" as defined in Section 3(e) of the Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of Transfer of Certain Lands) Act, 1978 Act would show that an "agreement for sale" of any "granted land" is included within the meaning of "Transfer". That being the position, the word "Transfer" as defined under the Act is an inclusive definition. That is to say, it includes "sale" as well as "agreement for sale", although an agreement for sale under the Transfer of Property Act is not a transfer and the right, .title or interest in the land does not pass until the sale deed is executed and registered. "Sale" has been defined in Section 54 of the Transfer of Property Act which means transfer of ownership in exchange for a price paid or promised or part- paid and part-promised. As noted herein earlier, an agreement sell does not by itself create any interest of the proposed ~ vendee in the immovable property but only creates an enforceable right in the parties. (See : Rambhau Namdeo Gajre vs. Narayan Bapuji Dhotra (Dead) through LRs. [(2004) 8 SCC 614]). Therefore, it is clear that under the general law, that is, under the Transfer of Property Act, an 'agreement for sale' is not the same as 'sale' and in the case of an agreement for sale, the title of the property agreed to be sold still remains with the vendor but in the case of 'sale', title of the property is vested with the vendee. Therefore, an agreement for sale is an executory contract whereas sale is an executed contract.

IN THE SUPREME COURT OF INDIA CIVILAPPELLATE JURISDICTION DHARMA NAIKA v. RAMA NAIKA AND ANR. . (Civil Appeal No. 2802 of 2001) FEBRUARY 5, 2008

12/22/20241 min read