Ownership becomes clear and proper only on the execution of the sale deed. Sec 13 of the REREA Act 2016 requires the sale agreement to be registered, which is not the case under the Registration Act and therefore the validity of the agreement to sell comes in conflict.
Agreement To Sell
It is an agreement entered into by the parties to make a sale of the property in some future time. There is no immediate transfer of property under agreement to sell.
Difference Between Sale Deed And Agreement To Sell
Sale deed transfers the right, ownership and interest to the buyer as soon as the deed is made by the parties. However, in case of the agreement to sell, this is not the case. The right and ownership is transferred to the buyer on some future date after fulfillment of certain conditions. Under the Registration Act, sec 17(2), the registration of an agreement to sell is not compulsory whereas it is made compulsory under the RERA Act.
Prevailing Act
The conflict brings us a question as to which Act will prevail in such cases. Sec 89 of RERA Act makes it clear that the Act will have an overriding effect over the Registration Act. But it is pertinent to note that this is the case only in agreement to sell and of no other.
Conclusion
Thus, the RERA Act will prevail over the Registration Act in case of agreement to sell.