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

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?

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.

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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.