Agreement for Sale and Sale Deed: Understanding the Difference
When it comes to buying or selling a property, there are several legal documents involved in the process. Some of the most common ones include an agreement for sale and a sale deed. While these two documents may seem similar at first glance, there are significant differences between them. As a professional, I`ll explain the difference between an agreement for sale and a sale deed.
Agreement for Sale
An agreement for sale is a contract between the buyer and the seller that outlines the terms and conditions of the sale of a property. It is a preliminary document that sets the basis for the final sale deed. Generally, an agreement for sale is executed when the buyer pays a certain sum of money as a token of advance payment to the seller.
The agreement for sale contains important details such as the description of the property, the price, payment schedule, timelines for payment, and other terms and conditions agreed upon between the parties. It helps to avoid disputes and conflicts between the buyer and seller by clearly defining the obligations of both parties.
Once the agreement for sale is executed, the buyer has a legal right to the property and can get an NOC from the concerned authorities such as the Municipal Corporation, Electricity Board, and others. However, the ownership of the property is transferred only after the execution of the Sale Deed.
Sale Deed
A sale deed, also known as a conveyance deed, is a legal document that transfers the ownership of a property from the seller to the buyer. It is the final and conclusive document of transfer of title. Once the sale deed is executed, the buyer becomes the absolute owner of the property.
The sale deed contains details such as the description of the property, the sale consideration, any encumbrances, and covenants. It is a critical document as it is a proof of transfer of ownership and helps the buyer to get the property registered in their name. The sale deed has to be executed on a non-judicial stamp paper, and the stamp duty and registration fee have to be paid to the government.
Key Differences
The agreement for sale is a preliminary document, whereas the sale deed is the final document that confirms the transfer of ownership. The agreement for sale is executed before the sale deed, and it outlines the terms and conditions of the sale, while the sale deed contains details of the transfer of ownership. Another key difference is that while an agreement for sale can be executed on a plain paper, a sale deed has to be executed on a non-judicial stamp paper.
Conclusion
The agreement for sale and sale deed are two crucial documents that play a vital role in the transfer of ownership of a property. As a professional, I hope this article helps clarify the differences between the two documents and sheds light on their importance. It is important to carefully read and understand both documents before entering into a transaction to avoid any legal disputes or conflicts.
