Difference between Sale Deed and Agreement of Sale

As a professional, I am here to help you understand the critical differences between a sale deed and an agreement of sale.

While both documents are essential in the process of buying or selling a property, they serve different purposes and have different implications.

A sale deed, also known as a conveyance deed, is a legal document that transfers ownership of a property from the seller to the buyer. It is a proof of ownership and establishes the buyer`s ownership rights in the property. The sale deed is a document that needs to be registered with the sub-registrar`s office, and only after registration, it becomes valid.

On the other hand, an agreement of sale is a legal document that outlines the terms and conditions of the sale of a property between the buyer and the seller. It is a contract that specifies the price, payment schedule, and other essential details of the sale. The agreement of sale is a document that is generally entered into before the sale deed is executed.

Unlike a sale deed, an agreement of sale does not transfer ownership of the property. It only lays down the terms and conditions of the transaction, and the actual transfer of ownership occurs only upon execution of the sale deed.

One significant difference between the sale deed and the agreement of sale is that the sale deed is a conclusive proof of ownership, while an agreement of sale is not. Since ownership of the property is not transferred until the sale deed is executed, the buyer`s ownership rights are not secure until the sale deed is registered.

Another difference between the two documents is the consequence of a breach of contract. If the seller breaches the agreement of sale, the buyer can sue for specific performance of the contract or for damages. However, if the seller breaches the sale deed, the buyer can sue for a refund of the consideration paid along with damages.

In conclusion, while both the sale deed and the agreement of sale play crucial roles in the process of buying or selling a property, they are different documents with different implications. The sale deed is a conclusive proof of ownership, while the agreement of sale outlines the terms and conditions of the sale. Understanding the differences between the two documents can help buyers and sellers make informed decisions and avoid any legal issues in the future.


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