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Agreement for Sale and Sale Deed

Agreement for sale is a legal document consisting of the terms and conditions for the sale of a property. It is a promise of transfer of ownership on a future date.

The sale deed is entered into at the time of the actual sale of the property. Execution of a sale deed implies the transfer of ownership.

Parties involved:

  • Buyer

    Buyer is the person who is promised the future ownership of a property in an agreement for sale and who acquires this ownership after execution of the sale deed. This can be an individual or a company.

  • Seller

    Seller is someone who either owns the property or has the authority to transfer the ownership of the property being sold to the buyer. This can also be an individual or a company.

Essentials of an agreement for sale and a sale deed

Identification‌ ‌of‌ ‌parties.‌

Both the agreement for sale and the sale deed ‌should‌ ‌clearly‌ ‌specify‌ ‌the‌ ‌name,‌ ‌age,‌ ‌and, address ‌of‌ the‌ ‌buyer ‌and‌ the seller.

Description of the property

They should include the exact location and an accurate description of the property like the dimensions and type of the property, etc.


They should mention the consideration to be paid by the buyer, along with the details of the payment schedule i.e., the date and time of the payment or of each installment, as the case may be.

Rights and liabilities of the parties

They should have separate clauses for the rights and responsibilities of the buyer and the seller each. This clause should also include the timeline for the sellers’ responsibilities like repair, painting, etc.

Date of transfer of ownership

The agreement for sale should mention the promised date for transfer of ownership and title to the buyer.

No encumbrances

It is important that the property is free of any liabilities or outstanding dues. The agreement for sale shall provide for the clearance of all such liabilities.

Indemnity and dispute resolution

The seller should promise to compensate the buyer for any damages or losses caused to the buyer in case of disputes with regard to the ownership. They should also mention the State and jurisdiction of courts and applicable law if any dispute arises in case of any dispute arising out of these agreements.

Why do you need an agreement for sale and a sale deed?

  • Proof of the parties’ agreementIt is proof of the seller’s promise to transfer ownership of the property and the buyer’s promise to pay the agreed consideration.
  • Necessary for obtaining a bank loanBanks usually refuse to provide a loan to the buyer without a signed agreement for sale.
  • AccountabilityIn case of a breach of the terms of the agreement by either of the parties, they can be held responsible for the same and legal actions may be taken against them.
  • A legal right or interest in the property
    In addition to the above advantages, the biggest reason for executing a sale deed is that even if you have a signed agreement for sale in place and you, as a buyer, have received possession of the property, the title or ownership of the property would still remain with the seller, without an executed and registered sale deed. For all immovable properties valuing more than Rs.100/- registration of a sale deed is mandatory in India.

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Are you one of these?

  • An owner of a property interested to sell the property
  • Anyone who has the authority and interest to sell a property
  • Anyone looking to purchase a property 

Do you relate to any of these statements?

  • You as a seller want to ensure complete payment by the buyer
  • Your terms of sale are peculiar to your requirements and your property
  • You as a buyer want to ensure that the property is free of any liabilities
  • You want to make sure that all documents are genuine and liability-free

Then you definitely need a customized agreement for sale and a sale deed and not just some standard templates.