conveyancing
Querist :
Anonymous
(Querist) 04 July 2010
This query is : Resolved
What is the difference between Sale Deed and Agreement of Sale?
Devajyoti Barman
(Expert) 04 July 2010
The agreement for sale is the agreement to buy the particular property in future and when it is finally purchased by registering the same.
B K Raghavendra Rao
(Expert) 04 July 2010
Sale agreement is engagement and sale deed is marriage.
A V Vishal
(Expert) 04 July 2010
Though an Agreement for Sale and a Deed of Sale relate to purchase pf property, they are differences between them. Sale of an immovable property is usually preceded by an Agreement for Sale. The subsequent Deed of Sale is based on the Agreement for sale. Agreement for sale is a very important document. It records the understanding reached between the parties, which is binding on both. After making preliminary enquiries, the parties with or without their advocates sit and discuss the price and other terms and conditions and thereafter these are incorporated in the Agreement for sale. The main ingredients of Agreement for sale are the price consideration, accurate description of the property to be purchased and mode of payment, cost of transfer, specific enforcement and penalty clauses in case of default, An Agreement for sale protects the interest of both parties. It may be written or oral. The seller cannot alienate the property through an Agreement for sale.
A Deed of Sale is a written document executed between the buyer and the seller. It narrates in brief how the seller got the property, what price he is selling the property the sale consideration amount received, his assurances to the purchaser that the property is unencumbered and in case of any claim the purchaser will be indemnified. Both seller and purchaser shall execute the sale deed. A sale Deed must be registered. After registration and receipt of the balance consideration amount in the presence of witnesses, the property stands transferred to the purchaser.
