Vinayak Realtech

Buying and selling a property involves numerous legalities, and adhering to them is crucial to avoid legal issues. Differences between Title Deed and Sale Deed are one of them. Knowing the definition and difference between the two is important if you want to buy or sell an asset.

 Differences Between Title Deed and Sale Deed: What is a Title Deed?

A title deed is a legal document that defines the way of property inheritance. It means the document clearly states whether the asset was owned, transferred, or allotted by an authority. The paper also includes information like how much land a person owns or the rights of a person over land.

To maintain the transparency of the deal, a title deed always highlights crucial information regarding property. It includes the owner of the property, what rights or privileges the owner has, a description, and the location of the property.

Key Components of the Title Deed

Although you need a professional lawyer to draft a perfect title deed, knowing the key components always boosts clarity. Before the final proceeding, make sure your papers have all of these facts and the key components are-

• Property description (including location, size, boundaries, and survey numbers of the property).
• Owner details (name, address, and any relevant identity information of the current owner)
• Transaction history (the past transactions to understand the chain of titles of the property).
• Encumbrances information (list any outstanding debts, mortgages, or legal claims against the property).
• Date of transfer (the current owner got the property).
• Purchasing price (the price of the property, if any)
• Property condition (it showcases the property condition during the deal)
• Registration details (the date and a seal from the government office)

These are the main information that this paper must have. Apart from this, the paper also must contain signatures of both owners, witnesses, and the government seal and stamp.

What is a Sale Deed?

The sale deed is a legal document that defines the terms and conditions of the deal. A sale deed outlines the important information regarding the price to be paid for buying the property, description of the property, how and when the property ownership will be transferred to the buyer, etc. It is one of the most crucial documents of any real estate transaction. Remember, singing a sale deed means the legal transfer of the property.

Key Components of a Sale Deed

Like the title deed, the sale deed also must have some specific components to make it 100% valid. The components are as follows-

• Parties involved (details of buyer and seller, if there is more than one buyer or seller, that must be mentioned).
• Property description (complete address, area of the property, and dimensions with accurate location).
• Sale consideration (the amount including the advance amount).
• Payment details or terms (it must mention the mode of payment, such as through a cheque, a demand draft, an online transfer, or even an installment).
• Possession detail (the specific date and time of possession).
• Passing the title (the time when the title of the property will be transferred to the buyer).
• Indemnity (previous loans, taxes, and charges related to the property).
• Encumbrance certificate (a legal certificate that verifies the property sold is free from any legal or financial liabilities).
• Warranties and representations (the seller guarantees that the property is free from encumbrances, while the buyer acknowledges that he/she has inspected the property before purchase).

Differences Between Title Deed and Sale Deed

If you are a novice, you might get confused about the differences between these two legal documents. The confusion occurs because both documents include some common information. It includes buyer and seller details. However, they have significant differences, and they are-

Importance of the Title Deed in Property Transactions

The title deed is one of the most crucial documents in any property transaction. It ensures the legal verification of ownership, which helps in avoiding any legal battle in the future. A title deed clearly records and highlights the inheritance of the property to leave no room for illegal claims. The document also states the mortgage details. It helps in getting loan approvals in the future.

Importance of the Sale Deed in a Property Transaction

It is the last step of the deal, and it legally transfers ownership. In a sale deed, the date and time of possession are specifically mentioned. It is expected that the handover will be executed on that date and time. Any delay in this can be a legal issue. However, most of the time, the seller and buyer mutually resolve in case of delay.

Final Thoughts: Differences Between Title Deed and Sale Deed

The title deed and sale deed are not mere documents, these are the papers that determine the ownership. Along with the ownerships, these papers clearly state all the necessary information, like inheritance or debt. This information helps in future-proofing the property and ensures a peaceful living.

During drafting these documents, always take the help of a professional lawyer and the seller of the property. The property seller offers the right information, and the lawyer ensures the ideal structure.

If you are looking for a property with updated amenities and modern style, connect with us. We offer a range of properties (depending on budget and other factors) in the middle of Kolkata. As a responsible builder, we pay significant attention to maintaining the legalities of our every project and extend help to our clients. This helps our customers to manage home loans and other legalities better.

Frequently Asked Questions:

Can I draft the title and sale deed alone?

No, you need help from a skilled lawyer to draft the title and sale deed of any property. It is because both documents have a specific structure and need a load of legal considerations.

Can I get a copy of the title and sale deed online?

Yes, you can obtain copies of the title and sale deed online easily. To get this, you must visit the portal of your state government and do the needful.

How much do I need to pay for a title and sale deed?

Stamp duty and registration fees must be paid, and the amounts vary. Ask your lawyer or builder about this.

How do I gather all the necessary information for drafting?

To gather all the necessary information, you need the help of the builder. Don’t worry, almost all the builders provide all the legal information for this process. However, if your builder refuses to do this, there is a chance that the project might have some legal issues. In that case, avoiding the deal will be the best decision ever.