Post Question
Home / Legal / Sale Agreement / What is the difference between the registration of agreement of sale and sale deed?
Q.

What is the difference between the registration of agreement of sale and sale deed?

Comment

3
Answers

Sale Agreement
0 2022-08-12T14:28:05+00:00
⤺ Reply
Hey, My cousin has recently sold his flat and I was there with him during the entire process, I can tell you the difference between registration of agreement to sale and sale deed. Hire NoBroker’s Legal Experts if You Need Help in Drafting or Registering a Sale Agreement! An agreement to sell is a promise of a future transfer of property ownership whereas a sale deed is an actual transfer of property ownership. The sale agreement basically comes before the sale deed, which is executed and signed by the buyer and the seller on non-judicial stamp paper. To execute a sale deed, the buyer needs to pay a registration fee and stamp duty. The sale deed registration concludes the property buying process. If you have bought any property under a sales agreement and got possession, the title of the property remains with the property owner, unless a sale deed subsequently has been executed and registered. So, a title of a property can only be transferred by a sale deed. In there’s no duly registered and stamped sale deed, no interest, title, or right in immovable property, accrue to the property’s buyer. You will learn about the difference between these terms in this answer: What is the Difference Between Sales Agreement and Sale Deed Registration? Read more: What is the Cost for Agreement to Sell Registration?  
0 2023-08-30T12:54:08+00:00
⤺ Reply
A legal contract must be used to protect the transaction when purchasing or selling property. The type of contract that is executed and its terms, however, may vary depending on the parties' agreement. The 2 types of contracts are, a sale agreement, and a sale deed. An agreement is therefore prepared based on the specifics of the transaction between the buyer and seller. Hence, let us examine the difference between sale deed and agreement for sale.

What is the difference between sale deed and registration?

Points of difference between registry and sale deed Agreement of sale Sale deed
Transfer It signifies the property will be transferred in the future. It denotes an immediate transfer of the property title.
Risk involved Until the property is transferred, the seller is still responsible for all risks and responsibilities. The new buyer bears the risk right away.
Contract It is an executory contract, meaning that its terms are not currently being fully carried out. It is an executed contract
Violation A lawsuit for damages and contract termination can be a result of a breach of the sale agreement. A legal complaint and monetary damages are awarded in the event of a sale deed breach
Registration All states have different requirements for registering sales agreements. Registration of a selling deed is required
I hope this table would help you in understanding the difference between sale deed and registry. If you are still unsure about the difference between sale deed and registration, you can seek legal counsel. I hope this helps. Get all legal documents verified by the experts at NoBroker legal assistance service Read More: Is sale deed necessary for home loan? What is Sale Deed Number?  Registered Sale Deed: Meaning, Importance and Process
0 2024-04-18T00:03:22+00:00
⤺ Reply
Let’s delve into the difference between agreement for sale and sale deed in the context of real estate transactions in India:
  1. Agreement of Sale:
    • Definition: An Agreement of Sale is a contract between two or more parties where one party agrees to sell an asset (such as property) to the other party.
    • Purpose: It establishes the terms and conditions under which the property will be sold.
    • Form: The agreement must be in writing and signed by both parties.
    • Status: It is a preliminary contract that outlines the intention to sell.
    • Transfer: The actual transfer of ownership does not happen through the agreement itself.
    • Cost: It is cheaper than a Sale Deed.
    • Registration: It can be registered with the government.
    • Amendments: It can be amended if necessary.
  2. Sale Deed:
    • Definition: A Sale Deed is a formal legal document that transfers the title of an asset (property) from the seller to the buyer.
    • Purpose: It concludes the property sale process.
    • Execution: It is executed and signed by both the buyer and the seller on non-judicial stamp paper.
    • Transfer: It immediately transfers the property ownership.
    • Applicability: It can be used for property transactions between private individuals as well as between a private individual and the government or a company.
    • Registration: It must be registered with the local registrar’s office.
This is the basic difference between agreement to sale and sale deed. In summary, while the Agreement of Sale sets the terms and conditions, the Sale Deed is the final legal document that facilitates the actual transfer of ownership. If you’re involved in a property transaction, understanding these distinctions is crucial.  I hope you understand the difference between sale agreement and sale deed. Get Your Sale Agreement Drafted or Reviewed via Legal Experts at NoBroker! Read more - What is the difference between sales agreement and sales registration?  Need help with property registration and document verification? Contact NoBroker Legal experts to get end to end assistance here

Leave an answer

You must login or register to add a new answer .

Related Questions

If a father died without Will who possesses the right to sign a sales agreement?
In the JD, the project land is mentioned as 1 acre and 12 Guntas. In the Schedule A of sale Deed too, the project land is mentioned as 1 acre and 12 guntas. However, the total UDS is only 1 acre. So, who is the actual owner of the remaining 12 Guntas, is it the builder, landlord or the flat owner?
Does sale price of property include registration charges at the registrar's office?
I purchased the property which comes under miss appropriated account settlement and made sale deed. Is that sale deed is valid in eye of law?
Cheating by builder by reducing the Sale Deed price at rs.13.0 lacs against Sale agreement price 48 lacs. What do I do?

Recently Published Questions

Buy & Sell Rent & Lease Home Services Interior Design Finance Legal Payments Vastu Property Management Society Management NRI
How Much Minimum Balance for Federal Bank NRI Account? Which is the Best Investment Options for NRI in UAE? How to Change NRI Status in PAN Card? How can I Transfer Money from NRO to NRE Account? Can NRI Use UPI? Can OCI Inherit Property in India? What is NRI Pan Card Fees? Can NRI Send Money to Parents? Which Best Place to Retire in India for NRI? What are the Documents Required for NRI Account in SBI?
Flat 25% off on Home Painting
Flat 25% on Painting | Top Quality Paints | Professional Tools | Verified Partners
X
Home Cleaning Starting ₹359 Only
Revive Your Space with Expert Cleaning!
X
Enjoy hassle-free on time movement of your household goods.
X
Buy Your Dream Home with NoBroker.com & Enjoy Exclusive Benefits on Home Loan & Interior Services
X
Fastest Sanction in 7 Days from 15+ Banks | Max Funding | No Hidden Charges
X
Get upto ₹10 Lacs Instantly in your bank account | Instant Disbursal |
X