What Is Sale Deed?
A sale deed is a legal document that proves that a property has been transferred from the vendor to the customer. The registration of the sale deed concludes the property-purchase process. A sale deed is usually a document that transfers the rights of a party with a property of another property. It’s majorly drafted as a continuation of the agreement of sale. All the terms and conditions which are mentioned within the agreement of sale will be satisfied and observed within the sale deed.
What Is The Cancellation Of A Sale Deed?
The sale deed can be terminated or revoked by both the seller and the buyer if there is an agreement on this. Cancellation procedures are carried out only when one party requests a cancellation and the other party does not accept it.
A sale deed includes the following details.
- Details of the parties involved in the transaction
- Property description
- Transfer of titles
- Sales consideration clause
- References to the agreement of sale and the price information
- Transfer of rights, interests, and claim of the property to the new buyer
- A clause that the previous owner has no authority over the property on the facilities, privileges, and easements of the
- Buyer compensation for losses caused by the negligence of the seller or heir of the property
- The authority of the seller to sell the property.
Important Features Involved In The Sale Deed-
- Explanation of the property and ownership.
- Titles verified by the purchaser.
- Reference to the agreement of sale and therefore the amount details.
- Discharge of the property with details of facilities measurements, easements, privileges, and other rights.
- Transfer of all rights, claim, interests, demands, etc. of the property.
- Indemnifying the purchaser against all the losses arising out of actions of the vendor or heirs
- The complete authority of the seller to sell.
What Is An Agreement Of Sale?
An agreement of sale may be generally defined as a memorandum of agreement deed where the terms and conditions of a possible contract of sale are enumerated together with the offered consideration and payment details. The sale of the immovable property is one of the important documents because the sale deed relies on it. It allows the sale procedure to happen effortlessly by explaining step by step. This helps in building a better understanding between both the parties and their specific roles within the sale. Once the customer and the seller reach an understanding to enter into a property transaction, they draft an agreement, which puts in place the terms and conditions supported on which the transaction would occur. This document is known as a sale agreement or agreement to sell or agreement for sale
What Is The Cancellation Of Agreement Of Sale
Under the agreement of sale, the seller reserves the right to cancel the sale after notifying the buyer that the buyer is not complying with the terms of the contract. If the price has been partially paid, but the buyer has not paid the remaining amount within the agreed period, the seller may sell the property to another buyer after notifying the previous buyer.
An agreement of sale includes the following terms:
- Purchase offer and future sales agreement
- A detailed description of the property
- Disclaimer that the property has no legal burden
- Property value including payment details
- Delivery of the initial documents on the final payment
- Execution of sale deed and registration of the similar if the titles are found good
- Method of property delivery
- Refund of payment just in case of improper titles
- Scope of measures if the seller fails to complete the sale
- Loss of prepayment if the buyer does not complete the transaction
- Remedies when legal issues plague properties
- Transfer of tax-related certificates
- All other matters related to the proposed sale
Important Features Involved In The Agreement Of Sale
- The complete report of the property.
- Details of the payment together with earnest money.
- Providing original documents after the payment.
- Drafting the sale deed and registration if the titles are found to be genuine.
- Process of delivering the property
- Refunding the earnest money, if the titles are found to be not proper.
- Remedies for non-completion of sale from the side of the seller together with the particular performance and bearing of the expense of proceedings.
- Action if the property gets affected by any type of government notice.
- Production of tax-related documents.
- Description of the property schedule.
- Memo consideration for the received earnest money
The significant difference between the agreement of sale and sale deed
The sale shows immediately the transfer of the property. It’s accomplished through a sale deed, while an agreement of sale indicates future transfer. Risks within the sale are transferred immediately, whereas they remain with the vendor just in case of agreement of sale. A sale is an executed contract, whereas an agreement of sale is an executor’s contract.
There are chances of breach of sale leading to a suit for the price moreover as well as damages, whereas any type of breach of terms and conditions of an agreement of sale will result only within the suit for damages. A sale deed is considered as a compulsorily registered instrument whereas an agreement of sale differs from state to state.
|Points of difference||Agreement of sale||Sale deed|
|Transfer||It implies the future transfer of the property||It signifies an immediate transfer of the property titles|
|Risk involved||Risk/liabilities remain with the seller until the property is transferred in future||Risk is immediately transferred to the new buyer|
|Contract||It is an executory contract. An executory agreement is one that has not been fully implemented||It is an executed contract|
|Violation||Breach of sale may result in a suit for damages||Sale breach results in a legal complaint as well as monetary compensation for damages|
|Registration||It is not mandatory to register an agreement of sale. However, norms may differ across States||It is mandatory to register a sale deed|