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Sale deed and sale agreement are both legal documents used in the sale of property or land. Though they may sound similar, there are significant differences between the two. In this article, we will explore the difference between sale deed and sale agreement.

Sale Deed:

A sale deed is a legal document that transfers the ownership of a property from the seller to the buyer. It is considered as the final document of the property transaction, which is signed by both parties, and then registered with the local registrar.

The sale deed contains the following information:

– Details of the property, including the location, area, survey number, and any existing liens or encumbrances.

– Details of the buyer and the seller – name, address, and ID proof that is accepted by the government.

– The sale consideration amount, i.e. the cost for which the property is sold.

– Payment details such as mode of payment, payment schedule, and the amount received.

– Date of possession.

Once the sale deed is registered, it becomes a legally binding document that lays down the ownership of the property. It also serves as evidence of the transaction, which can be produced in the court of law in case of any disputes.

Sale Agreement:

A sale agreement is a document that establishes the terms and conditions of a property sale between the buyer and the seller. It is a precursor to the sale deed, which outlines the initial agreement before the final sale deed is drafted.

The sale agreement contains the following information:

– Details of the property, including the location, area, survey number, and any existing liens or encumbrances.

– Details of the buyer and the seller – name, address, and ID proof that is accepted by the government.

– The sale consideration amount, i.e. the cost for which the property is sold.

– Payment details such as mode of payment, payment schedule, and the amount received.

– Date of possession.

– Other terms and conditions of the sale such as penalties for late payment, default by the buyer, etc.

The sale agreement is an important document as it lays down the terms and conditions of the sale and serves as evidence of the initial agreement between the parties. However, it does not transfer the ownership of the property nor is it a legally binding document like the sale deed.

Conclusion:

In summary, a sale agreement is a precursor to the sale deed, which lays down the terms and conditions of the property sale. It is an important document but is not a legally binding document. On the other hand, a sale deed is a legal document that transfers the ownership of the property from the seller to the buyer and is a legally binding document. Both documents play an important role in the property transaction process and must be drafted and executed with utmost care and attention to detail.