Sale Deed vs Agreement to Sell: What`s the Difference?
When it comes to property transactions, two legal documents are often used – the sale deed and the agreement to sell. While both serve a similar purpose, there are a few key differences between the two. In this article, we`ll take a closer look at sale deed vs agreement to sell and what you need to know about each.
A sale deed is a legal document that serves as proof of transfer of ownership. It is the final document in the property purchase process and is registered with the local government authorities. Once the sale deed is registered, the new owner`s name is recorded in the property`s records, and the ownership is transferred to them.
The sale deed typically includes details of the transfer of ownership, the sale price, payment terms, and any other conditions that were agreed upon during the sale. It is a legally binding document that provides protection for both parties – the buyer and the seller. The buyer can be assured that the property is now legally theirs, while the seller can be assured that they have received payment for the property as agreed.
It is important to note that the sale deed is executed only after the payment for the property has been made in full. Once the sale deed is signed, it cannot be canceled or modified without the consent of both the buyer and the seller.
Agreement to Sell
An agreement to sell, on the other hand, is a preliminary contract between the buyer and the seller. It outlines the terms and conditions of the sale, including the sale price, payment terms, and any other conditions that need to be fulfilled before the sale deed can be executed.
Unlike the sale deed, an agreement to sell does not transfer ownership of the property. It is merely a promise to sell the property at a certain price, subject to certain conditions. It is typically used when the buyer and seller are still negotiating the terms of the sale and have not yet agreed on all the details.
While the agreement to sell is not a legally binding document, it can still provide some protection for both parties. It can help to establish the terms of the sale and prevent any misunderstandings or disputes that may arise later on.
Sale Deed vs Agreement to Sell: Which One Do You Need?
When it comes to property transactions, both the sale deed and the agreement to sell are important documents. The sale deed is the final document that transfers ownership of the property to the buyer, while the agreement to sell is a preliminary contract that outlines the terms of the sale.
If you are buying or selling a property, it is important to consult with a legal professional to determine which document is most appropriate for your situation. They can help you understand the legal implications of each document and ensure that the transaction is carried out smoothly and legally.
In conclusion, both the sale deed and the agreement to sell play an important role in property transactions. Knowing the difference between the two can help you make informed decisions when buying or selling a property.