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Nadarajah (Manager)     04 March 2011

Difference between Agreement of Sale, Sale Deed and Deed of

What is the difference between Agreement of Sale, Sale Deed and Deed of Assignment. Iam planning to buy a property by paying a part amount initially and remaining through bank loan. In what order these documents have to be executed. Please assist.

 

Regards,

Nadarajah



Learning

 27 Replies

Solicitor Chirag Shah (Advocate & Solicitor)     04 March 2011

Agreement for sale is a agreement between parties that on such and such terms the sale to take place. Terms and conditions could be agreed and sale to be completed on agreed future date with payment.

Sale Deed is a document executed at the time of finalising the sale deal. when entier aount is paid and property is conveyed sale deed is executed.

Deed of assignemnt is a deed by which interest in the proprty is transfered and assigned to another. Like tenancy rights and other rights of protperty can be assigned as it cant be sold.

1 Like

Chanakya Bhavsar (Advocate)     04 March 2011

Agreement for Sale is not the actual sale but a contractual agreement to sell a property on particular terms and for a particular price, however the Sale Deed itself is where the acutal transfer ouccers and one becomes the owner of the property.  Assignment will happen in case of leasehold land, whereby subject to the terms and conditions of the Lease Deed, the lessee shall be assigning all his rights emanating from the Lease deed to the assignee for a consideration, and whereby the assignee shall basically step into the shoes of the lessee and directly pay the rent to the Lessor.   

rahul shukla (lawyer)     04 March 2011

agreed with Chirag Shah and Chanakya.

@ Nadarajah

You need to enter into agreement to sale first and then complete the sale by executing sale deed in your favour. If you are going to buy a property and willing to take a bank loan, you should enter into the agreement to sale by paying token amount which willbe around 10% of total sale considration and get the agreement registered and approach the bank for loan.

reagrds

m.kupparaju (Advocate)     07 March 2011

I agree with Mr.Chirag Shah's briefing, which  is more  precise.

with regards,

M.Kupparaju

S. P. ASHOK (Advocate Bombay High Court 8450920005 advocatespashok@gmail.com)     10 April 2011

Be aware sometimes the builders are going only for Agreement for Sale and not executing Sale Deed.

Dennis Salve (Sr. Executive Purchase)     20 February 2012

Hello All,

i bought a flat in Pune, builder has done only the agreement to sale with me, sale deed is still pending from last 3 yrs, reason is all the flat owners has not paid their outstanding dues, therefore he has not registered the Housing society, now that i have to sell my flat, is it possible to do the sale deed between the buyer and myself, as there is no sale deed between me and the builder, please suggest.

Sh S. Kumar (Other)     07 September 2012

You may contact us For the Legal Drafting and Registration of Sale Deed, Agreement of Sale and Deed of Sale in Delhi.
SK Gupta
+91-8800418408
Agreement of Sale
Sale Deed in Delhi

Deed of Sale in Delhi

For more information, visit

https://www.onlinepropertyregistration.com/sale-deed-registration.html

Sachin (Asst Manager)     13 September 2012

Hi,

I have purchased a flat in Pune _PCMC Ravet.

I have gone thru the Agreemnt to Sale registered at PCMC registrar office.

Please guideme When to make a sale deed so that the flat is 100% is under my head.

Wil Agreemnt to sale provide 100% ownership??

M.Imran ali Qadri Naqshbandi (Student)     15 December 2012

AGREEMENT FOR SALE OF A HOUSE

 

This agreement made at............... on this day of............. 20…..between A, adult son of B, and resident of         (herein after called the seller) of the one part and C, adult son of D, resident of          (hereinafter called the purchaser) of the other part:

 

Witnesseth as follows:

  1. That the seller  agrees  to  sell  and  the purchaser agrees to purchase for the sum of Rs….. (Rupees…..            )   House No…….owned and possessed by the seller as an absolute owner and situated on…….. and bounded as follows:—

North   :

South   :

East :

West    :

containing by admeasurement    square metres of land together with all buildings, structures and outhouses and rights, easements and privileges enjoyed therewith.

2.     That Rs............................. (Rupees……..) have been paid as earnest money by the purchaser to the seller by means of Cheque/Demand Draft No…….        dated   drawn on         and the balance of Rs……(Rupees…….......................................... ) shall be paid at the time of the execution of the sale-deed (or before the Registering Officer).

3.     That    the    sale-deed    shall    be    executed    on    or    before the……… day of ………20….. whereupon the purchaser shall be entitled to immediate possession of the property sold to him.

4.     That the seller shall guarantee his sole and absolute title in the property to be sold and shall enter into all the usual covenants.

 

  1. That the property sold is free from encumbrances [or that the property   is   subject   to   the   following   encumbrances   (details   of encumbrances) and shall be sold subject to them, or which shall discharged by the seller before the completion of the sale in favour of the purchaser].

 

  1. That within two days from to-day the seller shall produce all the title-deeds of the house for inspection of the purchaser or of his nominee at   [place] and that in case the seller is unable to prove the marketable title that he has agreed to sell to the purchaser in the property agreed to be sold, it shall be open to the purchaser to cancel this agreement and to demand the return of the earnest money paid by him, and which shall be immediately returned by the seller.

 

  1. That all taxes and expenses relating to the property up to the date of the completion of the sale shall be paid by the seller, and thereafter by the purchaser, and that all rents, profits and income up to that date shall be taken by the seller and thereafter by the purchaser.

 

  1. That if the seller makes default in the performance of any of the conditions of this agreement, he shall pay Rs…… by way of compensation to the purchaser for such default; and if the purchaser makes default in the performance of any of the conditions  to be performed by him under this agreement, then the seller shall be entitled to forfeit the whole of the earnest money of Rs…….paid to him; and  that  the  party  not in  default shall be further entitled at his discretion either to annul this agreement or to specifically enforce it, in addition to any remedy that may be open to him.

 

  1. That the expenses of the sale shall be paid by the seller/ purchaser/by both parties in equal shares.

 

  1. That the title deeds of the property shall be handed over to the purchaser by the seller at the time of the completion of the sale. Or (That the seller shall retain but Will undertake to produce for inspection by the purchaser, whenever reasonably required to do so, the following title deeds which relate to the property' sold along with the other property of the seller). (List of the title deeds………..)

 

  1. That this agreement shall bind the above parties and their respective heirs, representatives and assigns.

 

  1. That if there be any difference or dispute between the parties on any matter arising hereunder or claimed so to rise, the same shall be referred to the arbitration of    whose award thereon shall be final and   binding on the parties.

In witness whereof the seller and the purchaser have here unto set and subscribed their respective hands /signatures in the presence of:

WITNESSES

1…………………                             Signature of the seller……………………………….

2…………………                             Signature of the purchaser…………………………..

 

 

AGREEMENT FOR SALE OF A HOUSE

 

This agreement made at............... on this day of............. 20…..between A, adult son of B, and resident of         (herein after called the seller) of the one part and C, adult son of D, resident of          (hereinafter called the purchaser) of the other part:

 

Witnesseth as follows:

  1. That the seller  agrees  to  sell  and  the purchaser agrees to purchase for the sum of Rs….. (Rupees…..            )   House No…….owned and possessed by the seller as an absolute owner and situated on…….. and bounded as follows:—

North   :

South   :

East :

West    :

containing by admeasurement    square metres of land together with all buildings, structures and outhouses and rights, easements and privileges enjoyed therewith.

2.     That Rs............................. (Rupees……..) have been paid as earnest money by the purchaser to the seller by means of Cheque/Demand Draft No…….        dated   drawn on         and the balance of Rs……(Rupees…….......................................... ) shall be paid at the time of the execution of the sale-deed (or before the Registering Officer).

3.     That    the    sale-deed    shall    be    executed    on    or    before the……… day of ………20….. whereupon the purchaser shall be entitled to immediate possession of the property sold to him.

4.     That the seller shall guarantee his sole and absolute title in the property to be sold and shall enter into all the usual covenants.

 

  1. That the property sold is free from encumbrances [or that the property   is   subject   to   the   following   encumbrances   (details   of encumbrances) and shall be sold subject to them, or which shall discharged by the seller before the completion of the sale in favour of the purchaser].

 

  1. That within two days from to-day the seller shall produce all the title-deeds of the house for inspection of the purchaser or of his nominee at   [place] and that in case the seller is unable to prove the marketable title that he has agreed to sell to the purchaser in the property agreed to be sold, it shall be open to the purchaser to cancel this agreement and to demand the return of the earnest money paid by him, and which shall be immediately returned by the seller.

 

  1. That all taxes and expenses relating to the property up to the date of the completion of the sale shall be paid by the seller, and thereafter by the purchaser, and that all rents, profits and income up to that date shall be taken by the seller and thereafter by the purchaser.

 

  1. That if the seller makes default in the performance of any of the conditions of this agreement, he shall pay Rs…… by way of compensation to the purchaser for such default; and if the purchaser makes default in the performance of any of the conditions  to be performed by him under this agreement, then the seller shall be entitled to forfeit the whole of the earnest money of Rs…….paid to him; and  that  the  party  not in  default shall be further entitled at his discretion either to annul this agreement or to specifically enforce it, in addition to any remedy that may be open to him.

 

  1. That the expenses of the sale shall be paid by the seller/ purchaser/by both parties in equal shares.

 

  1. That the title deeds of the property shall be handed over to the purchaser by the seller at the time of the completion of the sale. Or (That the seller shall retain but Will undertake to produce for inspection by the purchaser, whenever reasonably required to do so, the following title deeds which relate to the property' sold along with the other property of the seller). (List of the title deeds………..)

 

  1. That this agreement shall bind the above parties and their respective heirs, representatives and assigns.

 

  1. That if there be any difference or dispute between the parties on any matter arising hereunder or claimed so to rise, the same shall be referred to the arbitration of    whose award thereon shall be final and   binding on the parties.

In witness whereof the seller and the purchaser have here unto set and subscribed their respective hands /signatures in the presence of:

WITNESSES

1…………………                             Signature of the seller……………………………….

2…………………                             Signature of the purchaser…………………………..

 

 

 

 

 


Attached File : 576223399 14103-1.jpg downloaded: 2633 times

Avneendra Lamba (Private practice)     05 July 2013

if the person get into an agreement to sale by paying say 50% amount and getting the agreement to sale registered at the sub registration office and then in a months time gets a loan and the bank directly pays to the builder the remaining 50%. and does not agree to do the sale deed. does the buyer in that case has no rights to sell the property? As the property tax and even the electricity bill is in his name .

 

Bharathy (Technology Consultant)     21 October 2013

Hi Rahul,

I have few queries.

Our apartment is a Joint Development Agreement between builder and land owner.

The flat that we have booked comes under Land Owner's share of flats.

We have paid the Advance amount of 20% of flat cost. The Sale Agreement is made between us and land owner. Builder represents the land owner as both of them have signed a General Power of Attorney.

The bank did not give 80% of the loan amount because we already had some open home loan.

Based on our eligibility, the bank agreed to give only 60% of flat cost. So balance 20% we have to pay.

Now my questions are:

1. The builder says that to get the sale deed registered I need to pay the balance 20% now.

    Only then the sale deed will be executed. Only then the Bank will disburse the loan.

    He says the bank wants us to pay our part (40%) fully before it can release the loan(60%). Is this true?

2. Can I register the sale agreement(contract only) and ask the bank to release the loan? Are you talking about sale deed when you referred to registering the sale agreement?

3. The builder has not yet completed the construction. Is the land owner eligible to sell the flat before construction is over?

4. For people who purchased the flats directly from the builder, both sale agreement and construction agreement were made between the purchaser and builder. But in my case, there was one single sale cum construction agreement. Builder (represents land owner - GPA) says, that's what happens when we purchase the flat from land owner. Is this true?

5. Is there any REAL benefit in registering the sale agreement (Contract between parties)?

6. When I asked for both Sale and Construction Agreements, my loan agent told me that I need to pay extra amount in taxes if that is the case. But the cost of Unidivided share of land + flat cost is accounted for in the sale cum construction agreement that they have provided. I am not sure how there will be more taxes if I go for separate sale and construction agreement?

Please clarify.

Thanks in advance.

Bharathy

 

 

 

ABN (Design engineer)     21 November 2013

1. Yes, it is true for most of the banks.

ABN (Design engineer)     26 November 2013

Be aware you register the agreement of sale...sometimes there is intended change in price of the property so developer will be reluctant to register the same.

Venkat (TL)     01 January 2014

Dear Sir,

 

I have bought a flat in Pune under Apartment formation. The possession is in Sep 14.

My name is "VENKAT RAMAN SONNATI" While registering my flat agreement it was mentioned as "VENKATRAMAN SONNATI"(Space between VENKAT and RAMAN is missing). Advocate has asked me to cross the incorrect name and correct the name with Pen in all the places (4 times) in the agreement.Beside the correction, my self and my wife have signed. However, GPA from builder has not signed.

 

Index2 is showing the correct name in Marathi.

 

When I contacted an advocate, I was asked to register a rectification deed since Vendor's signature beside the manual correction is missing.

 

As per the Builder's advocate- there is no need to register a rectification deed as Apartment deed which will be registered in Sep 14 (at the time of giving possession|) will have correct name which is the final document showing my ownership.

Please advise if rectification deed need to be done.

Thanks a lot


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