An instrument agreement (sometimes called a tempère purchase agreement or a tempe purchase agreement) is a real estate transaction in which the purchase of the property is financed by the seller and not by a third party such as a bank, credit union or other mortgage lender. It is often used when a buyer does not qualify for a conventional mortgage According to the Law on the Transfer of Ownership, a contract of sale, with or without ownership, is not a transfer. Section 54 of the Transfer of Ownership Act provides that the sale of immovable property may be made only by a registered instrument and that a contract of sale does not generate interest or charges for its property. While a contract for a document can sometimes benefit a buyer with no other way to own a home, it is a high-risk option, subject to abuse and predatory practices. There is also a lack of rights and consumer protection available under state and federal laws for home buyers with traditional mortgages. If the buyer does not make payment or is in arrears with other terms of the contract, the seller may terminate the contract, distribute the buyer and promptly recover the property without a forced sale or legal action. Deed contracts have long been a means of financing real estate transactions between family members or friends. Some non-profit housing organizations also use it to help low-income families find a way to find housing. In cases where you have purchased and taken possession of real estate under a contract of sale, title to the property remains in the hands of the developer, unless a certificate of sale has been executed a posteriori and registered under the Indian Registration Act. Thus, it is clear that a title to immovable property can only be transferred by a deed of sale. In the absence of a duly stamped and registered deed of sale, the buyer of the property does not have the right, title or interest in a property. Since a seller retains ownership of the property for the duration of the contract, you run the risk that the seller may impose mortgages and instructions on the seller. If the seller doesn`t make mortgage payments and the property is foreclosed, you lose the house.