While property transaction-related matters, you may have come across the terms like agreement of sale and sales deed and found yourself in confusion. Most people don’t have an idea about these terms.
When it comes to purchasing a property like a house, flat we have to agree with the seller. A sale deed and sale agreement play a huge role here. This is why many of us think that the sale agreement and sale deed are the same. Because of the similarities in the name, confusion may occur.
Well, that’s not a problem; we will make you understand about sales deed and agreement of sale and also the difference between them.
A sale deed and agreement of sale are two different documents often used synonymously to each other in real estate transactions. An agreement for sale is an agreement to sell the property in question in the future that specifies the terms and conditions, which the property in question will be transferred to the buyer. Normally agreement of sale is made for immovable property.
The agreement of sale is a contract that a sale of particular property that takes place after terms and conditions are settled between the parties. It is a promise to transfer a property in question to the purchaser in the future
After signing the agreement of sale by both parties, It doesn’t mean that the property gets transferred to the buyer immediately. An agreement of sale creates a right for the purchaser to purchase the property after satisfying the term and conditions. After executing the sale deed by paying the entire consideration as per the sale agreement, the purchaser will become the legal owner of the property
The sale deed is the legal document by which the seller transfers their ownership over the property to the buyer in exchange for the amount or any consideration. A sale deed accompanied by a proper registration process and stamp duty transfer the absolute rights of a property to the purchaser.
It is considered valid proof of ownership of property and provides legal recognition of the transaction of property between the buyer and seller. The rights of the buyer and seller are mentioned in the sale deed. If any problems occur in the future over the property, the sale deed can be used as proof.
Execution of the sale deed containing proper stamping and registration, the buyer can become the legal owner of the property if there is no proper stamping its rights of the property cannot be legally transferred
Execution of the sale deed containing proper stamping and registration, the buyer can become the legal owner of the property if there is no proper stamping its rights of the property cannot be legally transferred. From this, you can understand that the transfer of ownership of immovable property can only be done by a sale deed.
Also, the buyer of immovable property should know that No right, title, or interest in an immovable property can be transferred without the stamping and registration of the sale deed.
Sale deed should be properly stamped and registered under the Indian Registration Act, 1908, which can transfer the ownership of property completely.