Agreement of Sale refers to the written contract that establishes the terms and conditions under which a property is sold, while Sale Deed refers to the document that records this agreement.
Whenever a property is subject to future terms and conditions and its transfer is based on a future date, it is referred to as an agreement of sale. When the terms and conditions of the agreement are met or the transfer of property has lapsed, the agreement becomes a sale. A sale deed form is subject to an immediate transfer of the property. Otherwise, it is a sale agreement. Let’s examine the differences between an agreement for sale and a sale deed in this blog.
What Is an Agreement of Sale?
An Agreement of Sale is a contract between two or more parties where one party agrees to sell an asset to the other party. The Agreement of Sale must be in writing and must be signed by both parties. The Agreement of Sale is different from a Sale Deed in India. A Sale Deed is a legal document that transfers the title to an asset from the seller to the buyer.
What Are the Benefits of an Agreement of Sale?
An Agreement of Sale is a legal document that is used to transfer the ownership of a property. The Agreement of Sale is also known as an agreement to sell and a deed of sale.
The Agreement of Sale can be used to transfer the ownership of immovable property, such as a house or land. The Agreement of Sale can also be used to transfer the ownership of movable property, such as a car or bike.
The benefits of using an Agreement of Sale include:
- The Agreement of Sale is cheaper than using a deed of sale.
- The Agreement of Sale can be signed by both the buyer and seller.
- The Agreement of Sale can be registered with the government.
- The Agreement of Sale can be amended if necessary.
How to Sign an Agreement of Sale in India?
If you are looking to buy a property in India, it is important to know the difference between an Agreement of Sale and a Sale Deed. An Agreement of Sale is typically used when the sale is not finalized. It involves the parties signing a contract to sell the property, which establishes the terms of the sale. A Sale Deed is a legal document that formalizes the agreement between the seller and buyer to sell a property. It usually has signatures from both parties and specifies the price, date of sale, and other details about the sale.
An agreement of sale can only be used to sell property between two private individuals. A sale deed, on the other hand, can be used to sell property between two private individuals as well as between a private individual and the government. The sale deed can also be used to sell the property to a company.
A sale deed must be registered with the local registrar’s office. The registrar’s office will then issue a certificate of registration which constitutes proof of ownership of the property.
What Should I Do if I Have Received a Notice/Letter From My Lawyer Saying That My Agreement Was Not Filed Properly and What Should I Do Now?
If you have received a notice/letter from your lawyer stating that your agreement was not filed properly, the first step is to contact your lawyer to discuss the issue. After speaking with your lawyer, you may need to do one of the following:
– File a new agreement
– File an amendment to your agreement
– Get a declaratory judgment
The Differences Between Agreement of Sale and Sale Deed
In India, an Agreement of Sale is generally an oral agreement between the buyer and the seller to sell a property. Whereas, a Sale Deed is a formal document that is filed with the local government to establish ownership of the property. The main difference between the two is that an Agreement of Sale does not require any Notarization.
The main advantage of using an Agreement of Sale is that it saves both time and money. It can be completed relatively quickly, and there is no need for any additional documentation or signatures. Additionally, it does not impact title or ownership of the property. The main disadvantage of using an Agreement of Sale is that it may not be enforced in court. If either party fails to live up to their part of the agreement, then a legal dispute may ensue.
Sale Deeds are typically used when buyers want more security or want to avoid any potential disputes after purchase. They often require Notarization and can provide more detailed information about the property, such as its boundaries and acreage. Additionally, sale deeds can be filed in court should there be any disputes after purchase.
Conclusion
A sale deed in India is an important document that records the terms of the sale. It typically includes information such as the property address, description, and legal description of the property sold. It may also include details about any existing liens or encumbrances on the property, and any restrictions on use that have been granted to either party by law. Typically, a copy of the sales agreement will be attached to the sale deed.
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