Legal Guide

Differences between Title deed vs. Sale deed

by Bhavya Choudhary · 3 min read

title deed vs sale deed

Sometimes title deeds are also labeled as sales deeds. But there are a few differences that one must be aware of to get the required information about it as they are not at all identical but falls under one category, and we need to clear the title deed vs. sale deed as the sale deed is a legal document while the title deed is just a statement.

Getting to know what is Title deed and vs. Sale deed

The type of document which confirms that a specific individual is the owner of any immovable property is a title deed. It is also known as a Deed of Sale on some occasions, but the question about their differences always emerges, and it should be defined in an elaborate way to avoid confusion. We will discuss the distinctions between title deed vs. sale deed.

Title deed

It is described as the legal right to own a property/estate. It mentions the property transfer between one or more individuals.

Deed of Sale

  • The process of acquiring legal ownership of a purchased property/asset by property registration. The document used for legal protocols is known as a sale deed. 
  • Most people may think that both the terms are synonyms as one helps to affirm the other, but there are evident differences in title deed vs. sale deed.

Title deed vs. sale deed

  • The primary difference between a title deed and vs. sale deed is more of a conceptual framework, and the sale deed is an actual document proving the ownership and contains the details of the owners and dealer.
  • After the registration process is completed, the theory is that the title deed itself evolves into a sale deed as it contains the proof that the individual is the legal owner of a property and he/she owns it now, which they have registered under their name. 
  • In this context, title deed vs. sale deed, the title deed has no particular documentation which can be used to notify the title.
  • The sale deed also can contain circumstances where the property was passed to any other individuals previously in the past.
  • A real estate title deed is a document that mentions the transfer of property ownership.

What is a title deed vs. a sale deed legally?

  • From the legal viewpoint, a title deed vs. a sale deed has a conceptual difference as the sale deed is an actual document while the title deed is a statement.
  • A sale deed encloses every term and condition which were agreed upon by the buyer and the seller to fulfill the transaction. 
  • This takes the form of an agreement only after being registered under the Registration Act 1908. The process of registration takes place at a sub-registrar’s office under legal provisions.
  • A title deed has no such registered documents. It is a statement containing ownership rights for a particular property of an individual.
  • For example, a title deed is held by a seller, so after the buyer purchased the property, the deed was registered and thus, became a sale deed.
  • In title deed vs. sale deed, the sale deed is a legal document that contains all the information of both parties, and the title deed also contains the same obligations of the owner, but it is not considered the same under legal provisions. 
  • During any registration or transaction, a legal consultation should be taken because of the terms which are not casually used and can cause trouble later. Certain laws come into action for people who do not have a title deed for their registered land/property. 
  • The title deed vs. sale deed has small points of difference that needs to be acknowledged.

Advantages in title deed vs. sale deed

  • There are advantages regarding title deed vs. sale deed. The value or acquisition of property cannot be exaggerated. It applies to all properties such as commercial buildings, residential homes, and real estate. As title deeds are legal documents, they are of great importance and significance.
  • It is a crucial element that helps the owner conduct future transfers in a hassle-free manner as title deed vs. sale deed is not to be taken lightly in case of the law.
  • A sale deed is a registered legal document that gives a distinction for the safe transfer of properties. In case of disputes in the future, it can be used as a critical piece of evidence. It affirms the legal rights, status, and details of the parties involved.
  • In the concept of title deed vs. sale deed, both are an important part of the purchase or selling of any immovable property/estate. Without the two deeds, any transaction cannot occur.
  • Legal matters are rather risky, so legal consultation is highly advised to be safer with the transactions. It should be dealt with absolute precision to avoid jargon that may be understood by some individuals. So it is better to have an understanding of the terms used to make a wise decision.

The information mentioned in the title deed vs. sale deed

In the title deed, the following points are enclosed:

  • Contracts for sale
  • The conveyance that occurred
  • Any previous will
  • Mortgages and leases

In the case of a sale deed, the following points are mentioned:

  • Ownership rights transfer
  • Value of the property
  • Ownership transfer from the seller to the buyer
  • Title

Conclusion

In the case of title deed vs. sale deed, the former is just a conceptual theory, while the latter is actual documentation that will be registered for any transaction. For this, two parties are involved, and their details are analyzed into the documents with their respective signatures.

A title deed acts as a statement that mentions the legitimate owner of an approved property. The seller has to present all the records of transactions associated with any property involved, and a sale deed is made based on such materials.

To get the sale deed enforced in a court of law, one must get the sale deed registered. Consult a professional lawyer to get your sale deed registered.

Bhavya Choudhary

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Bhavya Choudhary

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