Sales Deed Vs Sale Agreement
Navigating the world of real estate can be tricky, especially when terms like sale agreement, sale deed, agreement to sell, and sales contract are thrown around. If you find yourself confused, don’t worry! We’re here to clarify everything you need to know about the differences between a sale deed and a sale agreement. Let’s understand the key difference between Sales Deed Vs Sale Agreement!
Agreement for Sale:
An agreement for sale is a preliminary document that outlines the terms and conditions under which the property will be sold in the future.
It includes:
- Proposal to purchase and agreement to sell: Indicates the intent of both parties to buy and sell the property.
- Property Description: Detailed information about the property.
- Legal encumbrances: A statement confirming the property is free from legal issues.
- Property value: The agreed price for the property.
- Payment details: Information on how and when payments will be made.
- Original documents: Submission of original documents upon final payment.
- Method of property delivery: How the property will be handed over.
- Sale deed execution: Steps to execute the sale deed.
- Sale deed registration: Registration process of the sale deed.
- Payment refund: Conditions under which payments will be refunded in case of conflicts.
- Legal remedies: Solutions for any legal issues that may arise.
- Tax-related certificates: Transfer of relevant tax documents.
- In some states in India, like Uttar Pradesh, the draft sale agreement is not legally binding until it is registered with the sub-registrar’s office.
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Sale Deed:
A sale deed is a legal document that finalizes the sale and transfer of property ownership from the seller to the buyer.
It includes:
- Details of parties: Information about the buyer and seller.
- Property Description: Detailed information about the property.
- Title transfer: Transfer of ownership rights.
- Terms and conditions: Specific terms related to the sale.
- Price and payment details: Exact amount and payment breakdown.
- Transfer of rights: Transfer of all rights and interests to the buyer.
- Indemnity clause: Seller’s promise to compensate the buyer for any disputes or damages.
The sale deed is executed on the actual day of the property transfer and is registered at the registrar’s office under the Registration Act of 190823.
Key Differences
- Timing: An agreement for sale is a promise for a future sale, while a sale deed is executed for an immediate transfer.
- Risk and liability: In an agreement for sale, the risk remains with the seller until the sale is completed. In a sale deed, the risk is transferred to the buyer immediately upon execution.
I hope this helps clarify the differences! Do you have any specific questions about either document? If you still have we have added both formats below for your reference.
FORMAT – SALE DEED
(General)
This sale deed is executed on the ________ day of ______________, __________ by Sri./Smt. __________________________, S/o./W/o. ____________________________, occupation ____________________, aged __________ years, residing at ____________________________________________________________ (hereinafter referred to as the “SELLER”).
In favor of
Sri./Smt. __________________________, S/o./W/o. ____________________________, occupation ____________________, aged __________ years, residing at ____________________________________________________________ (hereinafter referred to as the “PURCHASER”).
Whereas, the terms “SELLER” and “PURCHASER,” unless the context requires otherwise, shall include their representatives, heirs, successors, executors, administrators, trustees, legal representatives, and assigns.
Whereas, the SELLER is the sole and absolute owner of the immovable property bearing No. ___________, known as _____________________, situated at ________________, and more fully described in the schedule below (hereinafter referred to as the “schedule property”).
Whereas, the SELLER acquired the property by ____________________ and has since been in possession and enjoyment of the scheduled property, paying all taxes and levies as the sole and absolute owner.
Whereas, the SELLER wishes to sell the scheduled property due to ____________________.
Whereas, the PURCHASER has agreed to purchase the scheduled property under an oral/written agreement for a total sale consideration of Rs. ____________ (Rupees __________________________ only), and the PURCHASER has agreed to pay the entire sale consideration at the time of executing the sale deed.
In consideration of the PURCHASER having paid the entire sale consideration of Rs. ____________ (Rupees __________________________ only).
FORMAT – AGREEMENT FOR SALE
This Agreement for Sale is executed on this ___ day of _, 20.
BETWEEN
Mr. ___, son of ___, aged ___ years, residing at ___, hereinafter referred to as “The Seller” (which term shall include his legal heirs, successors, executors, administrators, legal representatives, attorneys, and assigns) of the ONE PART.
AND
Mr. ___, son of ___, aged ___ years, residing at ___, hereinafter referred to as “The Purchaser” (represented by his power of attorney), which term shall include his heirs, successors, executors, administrators, legal representatives, attorneys, and assigns of the OTHER PART.
WHEREAS:
The Seller is the absolute owner in possession and enjoyment of the property described in the schedule below, hereinafter referred to as the “Schedule Property.”
The Schedule Property is the self-acquired property of the Seller, purchased from Mr. ___ by sale deed dated ___, registered as Document No. ___ of Book 1, Volume No. ___, Page No. ___ to ___, filed with the Sub-Registrar.
The Seller has clear and marketable title to the Schedule Property and has been enjoying it with absolute rights.
The Seller, needing funds for ___, has decided to sell the Schedule Property, and the Purchaser has offered to buy it.
NOW, THIS AGREEMENT WITNESSETH AS FOLLOWS:
The sale consideration for the Schedule Property is fixed at Rs. ___ (Rupees ___ only).
The Purchaser has paid an advance of Rs. ___ (Rupees ___ only) by cash/cheque/D.D. No. ___, drawn on ___, dated ___, which the Seller hereby acknowledges.
The balance amount of Rs. ___ (Rupees ___ only) will be paid by the Purchaser to the Seller at the time of executing the absolute Sale Deed, completing the sale transaction.
The parties agree to complete the sale transaction and execute the Absolute Sale Deed by the end of ___.
The Seller confirms that he has not entered into any agreement for the sale, mortgage, or exchange of the Schedule Property with any other person.
The Seller assures the Purchaser that he has the absolute power to convey the property and that there are no encumbrances, liens, charges, government dues, attachments, acquisition, or requisition proceedings.
The Seller agrees to deliver absolute and vacant possession of the Schedule Property to the Purchaser after executing and registering the sale deed at the jurisdictional Sub-Registrar’s office.
The Seller covenants that he will not create any charge, lien, or encumbrance on the Schedule Property during the subsistence of this Agreement.
The Seller agrees to perform all necessary acts to convey the absolute and marketable title of the Schedule Property to the Purchaser or his nominee.
It is agreed that all expenses towards stamp duty and registration charges shall be borne by the Purchaser.
