• C.L.S Taxi Stand, Anna Salai, Kodaikanal, Tamilnadu
  • 24 Hours / 7 days

Difference between Sale Deed and Sale Agreement with Possession

Uncategorized

When it comes to buying or selling a property, it is essential to understand the legal documents that are involved in the transaction. Two of the most important documents that you need to be aware of are the sale deed and sale agreement with possession. While both of these documents are used in real estate transactions, they have different meanings and purposes. In this article, we will explore the difference between sale deed and sale agreement with possession.

What is a Sale Deed?

A sale deed is a legal document used to transfer the ownership of a property from the seller to the buyer. It is a proof of ownership of the property and contains all the legal details of the transaction. A sale deed is executed after the full payment of the purchase price and after all the legal formalities are completed.

Once the sale deed is executed, the buyer becomes the legal owner of the property. The sale deed is a permanent legal document that needs to be registered with the local registrar`s office as per the provisions of the Registration Act.

What is a Sale Agreement with Possession?

A sale agreement with possession is a legal document that is used as an interim arrangement between the seller and the buyer. It is a contract between the two parties that contains the terms and conditions of the sale. The agreement is executed when the buyer pays a certain amount of money to the seller as a token of his/her intention to purchase the property.

The sale agreement with possession gives the buyer the right to possess the property until the sale deed is executed. It also contains other important details, such as the purchase price, payment schedule, and other terms and conditions that need to be fulfilled before the sale deed can be executed.

Difference between Sale Deed and Sale Agreement with Possession

The main difference between a sale deed and a sale agreement with possession is that a sale deed is a legal document that transfers the ownership of the property from the seller to the buyer, while a sale agreement with possession is an interim agreement that gives the buyer the right to possess the property until the sale deed is executed.

Another difference is that sale deed is a permanent legal document that needs to be registered, while a sale agreement with possession is not required to be registered. However, it is always advisable to get the sale agreement registered to avoid any legal disputes in the future.

Conclusion

In conclusion, both the sale deed and sale agreement with possession are important legal documents used in real estate transactions. While a sale deed is the final document that transfers ownership of the property from the seller to the buyer, a sale agreement with possession is an interim arrangement that gives the buyer the right to possess the property until the sale deed is executed. It is important to understand the difference between these two documents to avoid any legal complications in the future.