Sale vs. Agreement to Sell — What's the Difference?
Edited by Tayyaba Rehman — By Fiza Rafique — Published on December 30, 2023
A Sale is the immediate transfer of ownership, while an Agreement to Sell is a commitment to transfer ownership in the future.
Difference Between Sale and Agreement to Sell
Table of Contents
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Key Differences
A Sale refers to a transaction where the ownership of a property, item, or right is transferred from the seller to the buyer immediately. Once the sale is concluded, the seller can't claim any rights over the sold item, as ownership has passed onto the buyer.
An Agreement to Sell, on the other hand, is an arrangement between a buyer and seller where the seller promises to transfer the ownership of a property, item, or right to the buyer at a future date. It's essentially a future promise to conduct a sale.
In a Sale, the buyer becomes the legal owner of the property or item once the transaction is finalized. All the risks and rewards associated with the property or item are immediately transferred to the buyer.
With an Agreement to Sell, the transfer of ownership is conditional, usually based on certain terms or fulfillment of specific conditions. Until those conditions are met, the property remains in the seller's name, and the risks associated with it remain the seller's responsibility.
To summarize, while a Sale results in an immediate change in ownership, an Agreement to Sell outlines terms for a future sale and doesn't immediately transfer ownership.
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Comparison Chart
Part of Speech
Noun
Noun Phrase
Use in Compound Sentences
"After the Sale was finalized, the buyer took possession."
"They signed an Agreement to Sell, and the transaction will be complete next month."
Dependent Prepositions
"From the Sale of"
"Under the Agreement to Sell"
Common Adjectives Describing Them
Immediate, finalized, completed
Conditional, future, binding
Nature
Immediate transfer of ownership
Promise of future transfer of ownership
Compare with Definitions
Sale
The period during which a retailer sells goods at reduced prices.
The summer Sale starts next week.
Agreement to Sell
A legal document stating the intention to sell in the future.
The Agreement to Sell is awaiting final signatures.
Sale
A transaction where ownership of an item is transferred.
The Sale of the house was completed last week.
Agreement to Sell
A pledge between parties to conclude a sale later.
The buyer backed out despite the Agreement to Sell.
Sale
The act of exchanging a product or service for money.
The Sale of vintage cars attracted many enthusiasts.
Agreement to Sell
An arrangement promising a sale upon meeting certain conditions.
The Agreement to Sell is contingent on a successful home inspection.
Sale
The process of persuading or influencing someone to buy something.
His skills in Sale are unparalleled in the industry.
Agreement to Sell
A contract outlining terms for a future sale.
The Agreement to Sell the land will be executed next month.
Sale
The exchange of goods or services for an amount of money or its equivalent; the act of selling
The sale of such a nice house should be easy.
Agreement to Sell
A binding commitment to transfer ownership at a later date.
They entered into an Agreement to Sell their family home.
Sale
A selling of property to the highest bidder; an auction.
Sale
An offer or arrangement in which goods are sold at a discount
The store has a sale on winter coats.
Sale
The business or activity of selling goods or services
She works in sales.
Sale
The number of items sold or the amount of money received for a number of items sold
Sales are better than expected.
Sale
An exchange of goods or services for currency or credit.
He celebrated after the sale of company.
Sale
Short for discount sale The sale of goods at reduced prices.
They are having a clearance sale: 50% off.
Sale
The act of putting up for auction to the highest bidder.
Sale
(obsolete) A hall.
Sale
See 1st Sallow.
Sale
The act of selling; the transfer of property, or a contract to transfer the ownership of property, from one person to another for a valuable consideration, or for a price in money.
Sale
Opportunity of selling; demand; market.
They shall have ready sale for them.
Sale
Public disposal to the highest bidder, or exposure of goods in market; auction.
Sale
The general activity of selling;
They tried to boost sales
Laws limit the sale of handguns
Sale
A particular instance of selling;
He has just made his first sale
They had to complete the sale before the banks closed
Sale
The state of being purchasable; offered or exhibited for selling;
You'll find vitamin C for sale at most pharmacies
The new line of cars will soon be on sale
Sale
An occasion (usually brief) for buying at specially reduced prices;
They held a sale to reduce their inventory
I got some great bargains at their annual sale
Sale
An agreement (or contract) in which property is transferred from the seller (vendor) to the buyer (vendee) for a fixed price in money (paid or agreed to be paid by the buyer);
The salesman faxed the sales agreement to his home office
Sale
An event where goods are sold at reduced prices.
The Black Friday Sale had record-breaking numbers.
Common Curiosities
Does an Agreement to Sell guarantee a sale?
It indicates intent, but the sale is contingent on terms and conditions outlined in the agreement.
When is ownership transferred in a Sale?
Ownership is transferred immediately upon the conclusion of the sale.
Who bears the risk in an Agreement to Sell?
The seller, until the terms are met and ownership is transferred.
Can an Agreement to Sell be legally binding?
Yes, it's often a legally binding commitment to sell at a later date.
Can a Sale be reversed?
Typically, once finalized, a sale is binding unless both parties agree to reverse it.
What is the key difference between a Sale and an Agreement to Sell?
A Sale is an immediate transfer of ownership, while an Agreement to Sell is a promise of a future sale.
Can the terms of an Agreement to Sell be modified?
Typically, any modifications require mutual agreement between both parties.
Can you back out of an Agreement to Sell?
It depends on the terms. Breaking the agreement may result in penalties or legal action.
Who bears the risk of damage after a Sale?
The buyer, as they're the new owner after the sale.
Is a down payment required for an Agreement to Sell?
It's common but depends on the agreement's terms.
What happens if the buyer doesn't fulfill the Agreement to Sell terms?
The sale may be voided, and there might be legal consequences or penalties.
Is a receipt proof of Sale?
Yes, a receipt can serve as evidence of a completed sale.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
