When it comes to buying or selling property, it`s important to be familiar with the legal documents involved. Two such documents are the sale agreement and sale deed. While they may seem interchangeable to those not familiar with the real estate industry, they are actually quite different.
Sale Agreement
A sale agreement, also known as a purchase agreement or sale contract, is a legal document that outlines the terms and conditions of the sale. This document is typically prepared by the seller and includes details such as the price, payment terms, and the date of possession. It also outlines the responsibilities of both the buyer and the seller.
A sale agreement is typically signed before the sale is completed and is considered a binding contract between the two parties. It is important to note that a sale agreement is not the same as a deed, as it does not transfer ownership of the property. It merely outlines the terms and conditions of the sale.
Sale Deed
A sale deed, on the other hand, is a legal document that transfers ownership of the property from the seller to the buyer. This document is typically prepared by a lawyer and is executed after the sale agreement has been signed. It includes details such as the property description and the purchase price.
The sale deed is a crucial document that establishes the buyer as the legal owner of the property. It is also required for a buyer to obtain a loan against the property or to sell the property in the future.
Difference between Sale Agreement and Sale Deed
The main difference between a sale agreement and a sale deed is that a sale agreement is a contract that outlines the terms and conditions of the sale, whereas a sale deed is a legal document that transfers ownership of the property from the seller to the buyer.
Another difference is that a sale agreement is typically signed before the sale is completed, while a sale deed is executed after the sale agreement has been signed.
In summary, a sale agreement is a contract that outlines the terms and conditions of the sale, while a sale deed is a legal document that transfers ownership of the property from the seller to the buyer. Both documents are important in the real estate industry and should be understood by buyers and sellers alike.