Once Derrick has paid the amount of the deal, Larry will transfer the deed home to Derrick. Taxes are only collected once the sale is complete, so no sales agreement gives rise to taxes. SpAs also contains detailed information about the buyer and seller. The agreement records all deposits made prior to negotiations and notes a part of the agreement that has already been complied with. The agreement also specifies when the final sale will take place. A sales contract is a contract for the transfer of ownership. Even after both parties have signed the agreement, the property has not changed ownership, and the deed is not in the name of the buyer. If ownership of the goods is transferred immediately from the seller to the buyer (transfer of ownership), this is called a sale. A sales contract is a legal advantage that defines the conditions of a real estate transaction.