What is the difference between sales agreement and sales registration?

An agreement of sale is a framework of the terms and conditions of sale of property by the seller to the buyer. It contains information about terms of payment, the main schedule of property being sold, what is the total price, what is a future date of payments, and any other conditions and terms which have been mutually decided between the seller and the buyer.

is compulsory to make sale deed in the future.

To be considered as a valid evidence in the court of law the agreement of sale needs to be registered. This will be of great help in future in case of any conflicts if may arise due to any reason. It does not confer any power over the property or any right to the buyer. 

Hence, it is most important to register an agreement of sale and then only the transaction of sale or transfer of the immovable property is said to be complete and valid.

SALES REGISTRATION:

Several supreme court and High court judgements have held that unregistered agreement of sale will not be recognised in a court of law. If all Agreements of Sale are compulsory registered it will help in discouraging generation and circulation of Black money and discourage the growth of landmarks and muscle man to dominate the real estate market as is seen in many parts of the country. Once the sales registration is done, the ownership of the immovable property is transferred to the buyer and he can sell or stay in the property which he has just bought. Registering a sales agreement is a very smart move as various acts like INDIAN CONTRACT ACT, SPECIFIC RELIEF ACT and many acts enforced by states have supported REGISTRATION OF SALES AGREEMENT. S

makes the

valid. 

Hi,

I think there is a lot of confusion about sale agreement, sale agreement registration procedure, sale deed, and sale deed registration. Before clarifying all these aspects I think we should have a look at what is a sale agreement and sale deed.

A sale agreement is promise in the future by the seller to the buyer. It is a signed document between the two parties that the token amount has been received and the seller shall transfer the property in buyer’s name. All the transaction details of past and future will be specified in the sale agreement.

Now if you are wondering if it is mandatory to register sale agreement, I would say it is advisable. The reason for the same is that the apex court has passed many judgements on the basis of a registered sale agreement in the favour of the buyer when a seller tries to commit a fraudulent act. Many times, the seller takes a token amount from various buyers and ends up selling the property to another party. In order to prevent such actions, it is advisable to enter into the sale agreement registration process. 

Another reason to get a sale agreement registered is that when you apply for a home loan, you need to submit the copy of your sale agreement. Without it, banks usually consider your paperwork incomplete. 

To register sale agreement, you need to visit the SRO and pay the requisite stamp duty to complete the sale agreement registration procedure.

Now that we know what the sale agreement and sale agreement registration process is, we must have a look at what is sale deed. 

A sale deed is a legal document to prove actual transfer of property from seller to the buyer. It is absolutely mandatory to get a sale deed registered. A sale deed has details including details of buyers, and sellers, property area, construction details, sale amount (token, pending), date of possession, etc. 

Sale deed registration process is also carried out in the office of Sub-registrar after the payment of stamp duty and registration charges. 

Hey, there friend,

I see you want to know the difference between sale deed and registration. Most people consider these words to be synonyms, I am here to tell you that is not the case. The only similarity that exists is that these terms are used in the real estate sector. If you are curious to know how they differ, take a look at my answer below. 

I hope now the difference between sale deed and registry has been made cleared. You can read about it further right here.

• A sale registry includes multiple details. A few of them are the Name and addresses of the buyer and seller. A detailed description of the property. Total payment to be made, mode of payment, date when the payment is to be made.

My friend also shared with me how property registry provides legal protection to all the parties involved in the real estate transaction. 

It is pertinent to conduct due diligence when buying or selling immovable property. Once the sale deed of immovable property has been drafted, it needs to be stamped and registered under the district registry. The property can only be conveyed once, the deed is duly stamped and registered as required by law.” One needs to fulfil the requirements mentioned in Sections 54 and 55 of the Transfer of Property Act. This will ensure, the property is legally valid.

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Hi Friend,

I have currently purchased a property in Bangalore. However, I am not very familiar with the terms of the sale deed and agreement for sale registration. I have recently started researching the same, and I came across the above-mentioned answers. I found all of them very helpful.

I was browsing the internet, and I discovered that according to the Rera Act of 2016;

a promoter has two primary responsibilities:

• The promoter must first execute the agreement to sell after receiving the advance payment from the prospective buyer.

• Second, the sale agreement must be registered with the appropriate authorities.

Because it is a compulsorily registrable document as per Sec 17(1) of the Registration Act 1908, a sale deed is deemed an authentic instrument that also demonstrates a clear title to the property. A sale agreement must, however, be registered under Section 13 of the RERA Act 2016.

I am supremely impressed with Advay’s answer about the agreement of sale registration. I really liked the differences that he mentioned between the two.

Personally, I have done my sale agreement with the help of NoBroker, and I am very much happy with their service.

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In real estate, the terms sale agreement, and sale deed when dealing with property transaction-related matters. They are often used synonymously. However, both are different and executed at separate events. When it comes to purchasing immovable properties like a house, flat, or plot we need to enter into an agreement with the seller. It can be done through a sale agreement and sale deed. This is where a layman thinks that sale agreement and sale deed mean the same thing. Due to such unawareness, it becomes important to understand the difference

between sale deed and registration

to arrive at the successful completion of a deal. Otherwise, it might lead to complex legal problems and may put anyone’s investment at risk. The Transfer of Property Act, 1882 regulates the matters dealing with the sale and transfer of immovable property.

It is basically the first document that provides a proper legal status to sell an immovable property in the future that specifies the terms and conditions, proposed consideration, and details of payment, under which the property in question will be transferred to the buyer. Agreement of sale is also known as the memorandum of sale, contract of purchase, and contract for sale or sale agreement. 

According to Section 54 of the Transfer of Property Act, 1882: the agreement of sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties. 

It further provides that it does not by itself, create any kind of interest or charge on such property for the buyer willing to purchase. It is therefore a legal document on the basis on which the sale deed is created and executed. 

I am going to talk about unregistered and

registered sale agreement validity later so please read carefully till the end.

The sale deed, also known as a title deed, final deed, or conveyance deed, is a legal document by which the seller transfers his absolute ownership of the property to the buyer in exchange for a price paid or consideration. Therefore, a sale deed is a mandatory legal document, accompanied by a proper registration process and stamp duty, for obtaining absolute rights in a property as it provides legal recognition of the transaction of property between the parties and becomes a valid proof of ownership of immovable properties. This should clarify

which registration is required to sell property.

The sale deed includes the following details:

• Details of parties i.e. buyer and sellers like name, age, and address

• Consideration or sale amount (may also include advance payment paid)

• Description of property like a construction area, plot area, details of construction, etc.

• Mode of payment

• Reference of the sale agreement

• Date of delivery of possession

• Transfer of rights, interests, and claims over the property of the purchaser, etc.

The rights and obligations of the parties are clearly mentioned in the sale deed. In case of any future disputes between the parties (the husband and the wife) over the property, the sale deed can be used as legal documented evidence.

The total consideration amount must be paid as per the agreement to a sale before the registration of the sale deed. There should not be any arrears due on a property, such as previous loans, house tax, society dues, etc., otherwise the registrar can refuse to register the sale deed.

Stamp duty is imposed on the circle rate or actual value whichever is higher. Stamp duty can be between 3-10% [depends upon on state]. Along with stamp duty, 1% for the registration charges are paid.

• Method 1: E-Stamping

Visit Stock Holding Corporation of India site

for online payment option. Online Payment facility is available for Delhi, Gujarat, Chhattisgarh, Karnataka, Himachal Pradesh, Odisha, Tripura, Ladakh, Chandigarh, and Jammu & Kashmir for now. The necessary details are filled, further paying the stamp duty through Net Banking/Debit Card/NEFT/RTGS/FT.

After submission of stamp duty, you are required to carry a print out of the Online Reference Acknowledgement No. & are requested to visit the nearest Stock Holding Branch to take a final print out of the e-Stamp Certificate. Every stamp paper has a unique identification number that can be used for future reference.

One can also visit the nearest SHCIL/Bank Authorized Collection Center, pay stamp duty there, and provide your necessary details for the issue of stamp paper..

• Method 2: Non-Judicial Stamp Paper

Visit

to get a list of Authorized Stamp Vendors.

If you have an e-stamp then print the deed on plain paper and attach it with an e-stamp. The sale deed should not be conditional. 

Take an appointment for the nearest sub-registrar, they will give you a token number in which date and time are mentioned for the appearance in front of the sub-registrar. You can take an appointment online also only for those states which provide an e-stamping facility. Enter the e-stamp number and verify your e-stamp number. After verification, you will receive a message in which details of the appointment are provided. On the appointment date, the buyer and seller must be present at the time of registration along with two witnesses each. The buyer and seller have to sign each page and witnesses have to sign only the last page. Buyer and seller fingerprints will also be taken at the time of registration.

Collect token slip after signing the sale deed in the sub-registrar office. Token slip is used for future references and while collecting the original registered sale deed. Original registered sale deeds can be collected in 15-20 days after registration. In case of a loan, the bank will directly collect original registered deeds from the sub-registrar office.

• Duplicate copy of the Sale Deed that needs to be registered

• Two passport size photographs of the buyer and seller

• ID proof such as Aadhaar card, Voter’s ID and PAN Card of all the parties

• Certified true copies of Certificate of Incorporation in case of a company

• Copy of the property register card to indicate that the property does not belong to any Government authority

• Copy of the municipal tax bill

• Stamp paper or e-stamp and registration fees receipt

Unregistered Sale Agreement is enforceable by law, and any shortage of stamp charges can be paid through the Court's order. Such an agreement will be valid for three years from the date of the execution. 

What I have learnt while selling my property is that it is essential to protect the transaction through a formal contract when purchasing or selling real estate. However, depending on the parties' agreement, a different sort of contract may be executed. There are often two different forms of contracts: the sale agreement, which promises to transfer the property at a later time, and the sale deed, which involves an instantaneous transference of the property rights. The covenant is therefore written based on the specifics of the agreement between both the buyer and seller. I will explain to you everything about the

registered agreement to sale, in this answer.

The sale agreement demonstrates the parties' desire to purchase or sell the property in the future subject to the fulfilment of specific requirements. The buyer does not, however, have any rights to or interests in the subject property because there is no simultaneous transfer of title.

Terms included in the agreement of sale

• An offer to buy and a promise to sell later

• A declaration that the property is unencumbered by any liens or other claims of ownership

• Price of the property with payment information

• Original documents are delivered after the last payment.

• if the titles are confirmed to be in good standing, the execution and registration of the sale deed

• How to deliver property

• Refund of payment in cases of incorrect titles

• Action plan for the seller's failure to complete the sale Loss of upfront payment in the event that the buyer is unable to carry out the transaction

• What to do if the property is under siege by the law

• Transfer of certificates relating to taxes

• Everything else pertaining to the proposed sale

A sale agreement is not regarded as being legally binding on the parties involved in some states, such as Uttar Pradesh until it has been registered with the appropriate office of the sub-registrar of undertakings. Similar to registering a sale deed, a sale agreement must be registered. Thus, it would be wise to look into the relevant municipal ordinances.

Supreme Court ruling on sale deed without sale agreement

Only a deed of conveyance (sale deed) that has been properly stamped and registered in accordance with legal requirements may transfer or convey immovable property. Only a registered deed of conveyance is capable of legally and lawfully transferring or conveying immovable property.

Any contract of sale (agreement to sell) that is not a registered deed of conveyance (deed of sale) will not confer any title or transfer any interest in immovable property and will not satisfy the requirements of Sections 54 and 55 of the Transfer of Property Act.

I hope now you understand the

registered agreement to sale.

Both sale registration and a sale agreement are part of the property-buying process. A sale agreement is, in essence, a future promise that the buyer or the true owner would eventually get ownership of a specific piece of property. Contrarily, sales registration is completed at the time of property purchase, and the formal transfer of ownership occurs after property registration.A registered sale agreement validity is for three years.

If there is a negative condition in the contract, the limitation will be extended by that amount of time, for example, if the buyer is required to register the property within three months.

Is registration of agreement to sale is compulsory?

If you are wondering, whether is sale agreement mandatory or not, I’d like to say that agreements pertaining to the sale of movable property must be registered, per the provisions mentioned in the Registration Act, 1908. According to the General Rule of Law, a sale agreement is not legally binding until possession has been transferred.

Does sale agreement need to be registered?

Yes it should be registered. If all agreements of sale are required to be registered, this will significantly reduce the production and flow of black money in real estate transactions as well as the undervaluation of documents for stamp duty purposes. Additionally, it will prevent the rise of land mafias, who tries to control the real estate market in different regions of the nation.

You can register your property both online and offline modes.

• Register as a new user on the official website of your state. For instance,

  Kaveri online

  website.

• Click on the 'document registration' option after entering your user name and password. 

• The Sale Deed can be created by an executor or an attorney. After that, enter the information for the witnesses, buyer, and seller.

• Select the type of id proof that will be presented by the witnesses and the parties.

• Choose the type of property, such as residential or commercial, agricultural or non-agricultural land, the tax district, the registration district, and the location of the nearest SRO office. 

• Fill out the requisite details to calculate the stamp duty in Bangalore.

• The next step is to upload supporting documents like the sale deed, No Objection Certificates (NOCs), and address proofs.

• Choose the payment details to be taken into account and fill in the necessary details, including the bank challan number, banker's cheque number, and challan date.

• Make an appointment to register the sale deed, then show up at the appointed time with the necessary documentation to the Sub-Registrar's office.

You can also take assistance from the expert lawyers of NoBroker to help you with the sale agreement registration process, and the registered sale agreement validity details.

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The difference between sale deed vs registration is as follows.

:

• A sales agreement is a contract that outlines the terms and conditions of a property sale. It is also known as a "sale deed" or "agreement to sell."

•  Its primary purpose is to record the agreement between the buyer and seller regarding the sale of the property. It includes property's description, sale price, payment terms, date of possession, and other terms and conditions.

• It

  is a legally binding contract, and both parties are obligated to follow those terms.

• The actual transfer of property ownership does not occur through a sales agreement.

• A sales agreement is executed on a non-judicial stamp paper, and the payment of stamp duty is required.

1. Sales Registration

   :

   • It refers to the process of registering the sale deed with the government authorities.

   • Its purpose is to legally transfer ownership of the property from the seller to the buyer.

   • The sales registration is executed on a non-judicial stamp paper, and it involves the payment of stamp duty.

I hope you have understood the

sale agreement vs registration.

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