Agreement to Sale and Sale Deed: Understanding the Legalities
When it comes to buying or selling properties, it’s important to know the legalities involved. An agreement to sale and sale deed are two important documents that are necessary for a property transaction. In this article, we’ll go over what these documents are and what you need to know about them.
Agreement to Sale
An agreement to sale is a legal document that outlines the terms and conditions of a property transaction between a buyer and seller. It is a contract that is signed by both parties and includes details such as the property price, payment terms, possession date, and other relevant terms.
The agreement to sale is usually the first step in a property transaction. Once the buyer and seller have agreed to the terms, they sign the agreement to sale and pay a token amount (usually 10% of the property price) as a confirmation of their commitment to the transaction.
It’s important to note that an agreement to sale is not the same as a sale deed. An agreement to sale is a preliminary contract that sets out the terms of the sale, whereas a sale deed is the final document that legally transfers ownership from the seller to the buyer.
A sale deed, also known as a conveyance deed, is a legal document that transfers ownership of a property from the seller to the buyer. It is the final document in a property transaction and is signed by both parties in the presence of witnesses and a registrar.
The sale deed includes details such as the property description, sale price, names of the buyer and seller, and any relevant terms and conditions. Once the sale deed is signed and registered, the property ownership is legally transferred to the buyer.
It’s important to ensure that the sale deed is properly registered with the local authority, as an unregistered sale deed is not legally valid. Registration of the sale deed also attracts stamp duty and registration fees, which are payable by the buyer.
In summary, an agreement to sale and sale deed are two important documents that are necessary for any property transaction. The agreement to sale sets out the terms of the sale, while the sale deed legally transfers ownership from the seller to the buyer. It’s important to ensure that both of these documents are properly drafted and legally valid to avoid any disputes or legal issues in the future. As always, it’s recommended to seek professional legal advice when dealing with property transactions.