What is sale deed Vs. Registration

The word “sale deed” refers to a legal document that details the terms and circumstances of the transaction. It is signed by both the seller and the buyer to transfer property ownership. It provides critical information such as the purchase price, property description, how and when property ownership will be transferred to the buyer, and so on. It is a necessary document since it serves as a verification of property ownership. It officially records the transfer of property from the seller to the buyer. The sale/purchase of property is not legally completed until the sale deed is signed and registered by the buyer and seller.

The registered sale deed is a document that serves as documentation of property rights transfer. It is a confirmed document that confirms a seller’s property has been transferred to a buyer.   Any agreement for the transfer of any interest in an immovable property worth more than Rs 100 must be registered under the Indian Registration Act, of 1908.  So, if you acquired any property by any agreement for sale that was not accompanied by a formal sale deed, you have no right or interest in the property purportedly transferred under the agreement of sale.

Section 53A of the Transfer of Property Act provides an exemption to this absolute requirement. Section 53A states that if the buyer obtains possession of the property subject to the transfer while fully complying with his share of the agreement’s obligations, the seller is not permitted to disrupt the buyer’s possession. It should be emphasized that Section 53A protects the prospective transferee from the transferor and prohibits the transferor from interfering with the transferee’s possession, but it does not cure the buyer’s title to the property. The seller still retains ownership of the property.

So, until a sales contract is executed and registered under the Indian Registration Act after you have acquired a property under a sales agreement and taken possession, the title to the property remains with the developer. As a result, a title to immovable property may only be transferred by a sale document. In the absence of a fully stamped and registered sale document, the buyer of an immovable property acquires no right, title, or interest in the property.

Difference

In the case of registration, one needs to get it registered by following a procedure. You need to make an appointment with the local sub-registrar; they will provide you with a token number and a date and time for your appearance in front of the sub-registrar. You can also schedule an appointment online, but only in states that provide e-stamping. For Delhi, go to https://srams.delhi.gov.in/, choose your location, and then click the yes button if all of your paperwork is in order. Enter your e-stamp number and double-check it. Following verification, you will get a message with appointment information. The buyer and seller, as well as two witnesses each, must be present at the time of registration on the appointed day. The buyer and seller must sign each page, while witnesses must sign just the last page. At the time of registration, buyer and seller fingerprints will be obtained.

On the other hand, the case of a sale deed, entails the parties executing a contract to sell the property, which defines the conditions of the transaction. A sale deed is a contract between two or more parties in which one commits to sell an asset to the other. Both parties must sign it in writing. It need not be made in the sub-registrar’s office.

As the registration is made in the sub-registrar office, it needs to be made on stamp paper and the stamp duty needs to be paid. It makes it expensive. On the other hand, a sale deed is just an agreement or a letter between two parties which does not need to be stamped. Hence, it is less expensive.

If you are living in Maharashtra, you can make a sale deed in Marathi. For making a sale deed and sale agreement, or for hiring patent litigators, you can contact Lead India. Online information, free legal advice, and assistance with the law are all provided by Lead India. If you get Lila you can directly talk to a lawyer for the advice needed. Ask a legal question for advice.