Definition
A preliminary agreement between buyer and seller where ownership remains with the seller until full payment. Unlike the DOAS, the CTS is executory - meaning the sale is not yet complete. The buyer only has rights to the property, not ownership, until all conditions are met.
Examples
- •Preselling properties use CTS until turnover
- •The CTS protects both buyer and seller during the payment period
Tips & Best Practices
- ✓Read all terms carefully, especially default and cancellation clauses
- ✓Understand the penalty for late payments
- ✓Know when the CTS converts to DOAS
Related Terms
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