27/03/2026
đź“Ś Contract of Sale vs. Contract to Sell
🔑 Contract of Sale
Definition:
A Contract of Sale is a perfected agreement where ownership is transferred to the buyer upon delivery of the property—even if the full payment has not yet been completed.
Key Features:
âś… Ownership passes to the buyer upon delivery
âś… Buyer becomes the legal owner
âś… Non-payment is a breach of obligation, not a condition
âś… Seller may demand payment or rescind the contract
Example:
You purchase a condo unit, it is turned over to you, and the title transfer process begins—even while you continue paying in installments.
đź“ť Contract to Sell
Definition:
A Contract to Sell is a conditional agreement where ownership remains with the seller until the buyer fully pays the purchase price.
Key Features:
â›” Ownership stays with the seller
â›” Transfer happens only after full payment
âś… Full payment is a condition before ownership transfers
âś… If the buyer fails to pay, the seller may cancel without breach
Example:
Pre-selling condos from developers like Avida or Amaia—buyers pay in installments, but ownership is transferred only after full payment.
🧠Simple Way to Remember
Contract of Sale = Sold already, payment to follow
Contract to Sell = Not yet sold until fully paid
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