Sale Agreement and Sale Deed are two documents that are commonly used in the process of buying or selling a property in India. Generally, a Sale Agreement just states the terms and conditions of the sale, as agreed by the two parties. However, the Sale Deed states that the deal has been finalized and that the property or land has been handed over by the seller to the buyer.
- In the case of a single buy-sell transaction, both the documents need to be made and signed by the buyer and seller both. It would also be advised that the sale agreement and sale deed be registered. However, the actual guidelines regarding the sale agreement and sale deed may differ from state to state and even from country to country.
- Basically, a Sale
Agreement is an agreement between two parties regarding the conditions and
terms of sale of a property. It also lists the agreed value as remuneration for
the sale, as well as the mode of payment. Both the parties must sign it.
- Moreover, a Sale
Agreement does not create any interest or title over the property and land for
the buyer. In order to do that, a sale deed must be signed and registered. A
Sale Deed is commonly signed and recorded into after the Sale Agreement.
- The Sale Deed is basically
an executed contract. It establishes a valid and lawful title over the property
in favour of the buyer. It is signed after the sale of the property has taken
place. It transfers the estate to the buyer.
- The Sale Deed is the document that declares that the sale is successful and that the property and land now legally and rightfully belong to the purchaser, and that the seller relinquishes any right of title to the property in return for the remuneration as agreed upon in the Sale Agreement.
- Primarily, a Sale
Agreement states only the terms and conditions of the sale, as agreed by the
two parties. The Sale Deed, on the other hand, says that the deal has been
finalised and that the property has been handed over by the seller to the