What is the difference between sale deed and agreement of sale?

The terms “Agreement of Sale” and “Sale Deed” are used synonymously but both are distinct, executed at different events.

While an Agreement of Sale is a promise of transfer of property ownership on future date, Sale deed is an actual transfer of property ownership

What is an Agreement of Sale?

An Agreement of Sale is a promissory document that parties are willing to buy or sell the property on future date. The parties sign the agreement upon the satisfaction of terms & conditions listed in agreement. However, it doesn’t involve the transfer of ownership.

Important points to check in Agreement Of Sale :

• Date of agreement execution
• Name of the parties, Age, address and PAN Number
• Property Schedule including a composite of the property, undivided land share and property sold under the agreement (Schedule A, B & C)
• Property dimensions including super built-up area, carpet area and parking area
• Transfer of Titles (history of past transactions)
• Consideration value, TDS and Transaction terms
• Tentative date of sale deed registration
• Assurance that property is free from legal encumbrance (such as mortgage lien, court attachment)
• Remedy if legal issues besiege the property
• Terms about bearing the stamp Duty, Registration fee and other incidental charges
• Terms regarding delivery of original documents after the final payment
• Term regards the delivery of property possession
• Terms regard to cancellation in case seller or buyer retracts from deal
• Refund terms in case seller or buyer cancel the deal
• Penalty clause

How to execute Agreement Of Sale?

Follow these four steps to execute Agreement Of Sale:

• Draft the Agreement in Word file
• Print the agreement on document or bond paper
• Seller, buyer and two witnesses sign the agreement
• Franking is the process of stamping the Agreement in sub-registrar office. Frank the agreement 0.1% of consideration value

Agreement Of Sale Format:

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What is a Sale Deed?

Sale Dee is a legal document that confirms the sale and transfer of ownership from seller to buyer. Mandatory to register sale deed in registrar's office.

Important points to check in Sale Deed:

• Date of Sale Deed Execution
• Name of the parties, Age, address and PAN Number
• Property Schedule including a composite of the property, undivided land share and property sold under the deed (Schedule A, B & C)
• Property dimensions including super built-up area, carpet area and parking area
• Transfer of Titles (history of past transactions)
• Consideration value, TDS and Transaction details including transaction date, value and number
• Assurance that property is free from legal encumbrance (such as mortgage lien, court attachment)
• Remedy if legal issues besiege the property
• Transfer of rights, interests and claim of the property to the new buyers
• Terms regarding delivery of original documents to buyer
• Term regards the delivery of property possession

Generally, the Sale Deed is drafted out of terms & conditions covered in Agreement Of Sale.

How to Register Sale Deed?

Follow these six steps to register the sale deed

• Draft the Sale Deed in word file
• Print the sale deed draft on document or bond paper
• Pay the Stamp Duty & Registration fee
• In the Registration office:

Seller carries all the original property documents, including pan and aadhaar

Buyer carries the Stamp duty challan, PAN, aadhaar and Printed sale deed (to be registered)

• Buyer, seller and two witnesses sign the sale deed, provide bio-metric thumb-impression and webcam photo in sub-registrar office
• Buyer collects the encumbrance certificate from registering officer to cross-check the transfer of ownership

Sale Deed Format: