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Posted On September 4, 2019

Drafting differences between Sale Deed VS Title Deed

Drafting differences between Sale Deed VS Title Deed


Real estate offers us buying and selling of property legally, which also includes documentation along with its terms & conditions. Building a sound terminology of real estate keeps one in the knowledge of how it is going to be. We hear many legal terms when it comes to real estate; it’s really hard to make out the differences between a few of them because some are used so casually. Legal matters are quite risky and therefore, should be dealt with utmost precision. Often, there are jargon which are misunderstood. Such situations can cause greater troubles. Real estate is not a child’s play to fool around. A lot of investment goes into it. So it’s better to have accurate knowledge regarding the legal terms. Especially the ones that are used frequently. Even if you are considering buying an apartment from a reputed builder in Kolkata, it’s always to have a good understanding of things beforehand before you make your final decision.

In this article, we’ll conceptualize the difference between the most commonly misunderstood terms – Sales deed and Title deed – to get a clear idea of documentations and ownerships. Let us understand the definitions of the two before we get into the difference. Both these terms prove one’s ownership of the property. They may even sound similar, but they aren’t. Title deed is just a concept whereas sale deed is a document; which is legal and formal. The sale deed is a formation of a document, which is legally sound with all the necessary information. It mentions the following things –

  • The transfer of rights
  • Title
  • Ownership of property from a seller to the purchaser
  • Price of the property

It either can be a fully paid purchase or are supposed to be paid in installments at a future date. Followed with an entry into an agreement to sell, the execution of the sale deed takes place, which is governed by the Registration of Property Act, 1908. If the document is registered correctly, only then it is considered as a valid document. A sale deed is practiced to formalize the process where the buyer and seller agree on specific terms and also to renew the ownership of the property. To seal this agreement, the sale deed is prepared to inhabit every single detail of the new changes. This document is also based on the details of the past owned properties of the seller. The sale deed marks the completion of purchase. Both of the parties have to conclude the sale within a given time.

All details about the transaction are drafted and typed on a non-judicial stamp paper. The buyer is liable to pay the stamp duty concerning the stamp rules. Both parties then have to go to the Sub-Registrar’s office on a given date and time. They both should have two witnesses accompanying them. These witnesses should present their full names, addresses, and signatures. Everyone should carry their original ID proof. If the purchaser cannot be present in case of any unforeseen circumstances, he can give the Power of Attorney to someone else; who in turn will represent him by providing his documents and sign. They should be presented around four months prior to the date of execution. After getting all the documents verified, you’ll get a receipt. The sale deed can be collected after 15 – 20 days of registration.

Title deed, on the other hand, is the credential of the sale made after the execution of the sale deed, showcasing the chain of ownership for land and property. Title deed includes –

  • Conveyances
  • Contracts for sale
  • Wills
  • Mortgages
  • Leases

It refers to ownership of the property that is one has all the rights to use the property after the “deeds” which refers the legal documentations of the transfer title from one person to another, is completed. The title deed only talks about the rightful ownership of a person over a particular property. It also speaks about the mortgage and obligations of the owner.

Note – A sale deed becomes a title deed as soon as the sale deed is registered. The sale deed then gets concerted into a title deed.

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