When it comes to buying or selling property, there are some legal terms that are important to understand. Two such terms are sale deed and sale agreement. While both are used in real estate transactions, they have different meanings and implications. In this article, we will explore the differences between sale deed and sale agreement.
Sale Agreement
A sale agreement is a contract between the buyer and seller that outlines the terms and conditions of the sale. It includes details such as the purchase price, payment terms, possession date, and any other conditions that both parties have agreed upon. The sale agreement is a legally binding agreement between the buyer and seller and sets the stage for the actual sale of the property.
A sale agreement is typically signed by the buyer and seller, and sometimes a witness as well. It is often used in cases where the sale will be completed at a later date. For instance, if the buyer needs to secure a loan or if there are legal formalities that need to be completed, a sale agreement is drawn up.
Sale Deed
A sale deed, on the other hand, is a legal document that transfers ownership of the property from the seller to the buyer. It is the final and most important document in a real estate transaction. The sale deed contains the details of the property, the name of the buyer and seller, the purchase price, and any other details related to the sale.
The sale deed is signed by both parties and then registered with the local government authority. Once the sale deed is registered, the ownership of the property is transferred to the buyer. A sale deed is a conclusive proof of the ownership of the property.
Sale Deed vs Sale Agreement
In summary, a sale agreement is a contract between the buyer and seller that outlines the terms and conditions of the sale. It is used when the sale will be completed at a later date. A sale deed, on the other hand, is a legal document that transfers ownership of the property from the seller to the buyer. It is the final and most important document in a real estate transaction.
In conclusion, understanding the difference between a sale deed and a sale agreement is important for anyone involved in a real estate transaction. While a sale agreement sets the terms and conditions of the sale, a sale deed is the ultimate proof of ownership of the property. As a buyer or seller, it is crucial to ensure that both these documents are carefully drafted and reviewed by legal experts to avoid any future disputes.