Agreement to Sell vs Sale Deed/Assignment Deed – Difference
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| Differences | Agreement to Sell / Sale | Sale Deed/Assignment Deed |
| Basic Difference | An Agreement for Sale is an initial basic document that contains the term and conditions between buyer and seller. | Nominal Stamp Duty and Registration Fees are required for the Sale Deed/Assignment Deed if the Agreement For Sale is already registered otherwise Full Stamp Duty and Registration Fees are required. |
| Stamp Duty & Registration Fees | Full Stamp Duty & Registration Fees are applicable on the registration of Agreement for Sale. | Nominal Stamp Duty and Registration Fees are required for the Sale Deed/Assignment Deed if the Agreement For Sale is already registered otherwise Full Stamp Duty and Registration Fees are required. |
| Registration | If some amount of the transaction is due from the buyer then Agreement to Sell should be registered. It ensures that there will not be any dispute between the parties until the seller receives the full payment and transfer the ownership to the buyer. | Once the full payment is done then the Sale Deed/Assignment Deed should be registered. |
| Transfer of ownership | Agreement to Sell does not transfer the ownership. | The Sale Deed/Assignment Deed transfers the ownership. |
| Loan on the Property | If the buyer applied for the home loan or if there is an existing loan on the property then usually Bank demands an Agreement for Sale before disbursement of the loan amount. | If there is no Loan involved, the Sale Deed/Assignment Deed can be done directly. |
| Process of Transfer | By Agreement to Sell the process of property transfer begins. | By Sale Deed/Assignment Deed, the ownership gets transferred. |
| Terms & Conditions | The Agreement to Sell contains all the promises made by the Buyer and Seller to complete the transaction. | Once the promises are fulfilled by both parties they register Sale Deed/Assignment Deed. |
| Payment of Consideration | In the Agreement, parties mention the decided price. | Once the promises are fulfilled by both parties they register Sale Deed/Assignment Deed. |
| Rights Protection | In the Agreement to Sell usually the seller tries to protect his interest, so the terms and conditions in it would be in favor of the Seller. | In Sale Deed/Assignment Deed, the Buyers interest is more important, so the terms and conditions in this document usually would be in favor of the buyer. |
| Conveyance Deed | Agreement to Sell is not a Conveyance Deed. | Sale Deed/Assignment Deed is considered as Conveyance Deed |
| Possession of the Property | While doing Agreement to Sell the possession of the property can be under any party. | Before doing a Sale Deed/Assignment Deed, usually, the possession is handed over to the Buyer. etc. |
Important Points
Agreement to Sell Meaning –
An Agreement to sell is a document that contains terms and conditions of the sale of a property. It includes token amount detail and the terms and conditions regarding the amount at which the flat to be sold, the time limit for both the parties to complete the sale, and the buyer’s promise to make full payment within a certain time.
Sale Deed/Assignment Deed –
In this document, the ownership/title of the property gets transferred to the buyer.
Benefits of registration of Agreement to Sell–
It obligates the buyer and seller that throughout the sale process they must follow the terms and conditions mentioned in the agreement for sale until the final sale deed gets registered. An agreement for Sale is the base document on which the deed of assignment or sale deed is drafted (Deed of assignment/sale deed is the document prepared at the time of full payment made by the buyer and when the actual transfer of the property takes place).
Stamp Duty and Registration Charges –
In Maharashtra, the Registration Charges are fixed, which are Rs. 30,000/- or 1% of the Transaction Value (whichever is lower).
Stamp Duty gets changed as per the property location, for example – usually, Stamp Duty is less in Rural Areas compared to Corporations.
To check the online Stamp Duty calculator, visit – https://procounsel.in/online-stamp-duty-calculator/