In real estate, these two documents may sound similar—but they serve very different purposes.
Agreement for Sale
This is a promise to sell a property in the future under agreed terms.
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Purpose: Outlines conditions like price, payment schedule, and possession date
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Legal Standing: It’s an executory contract—ownership doesn’t transfer yet
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Registration: Optional (but recommended for legal clarity)
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Risk: If breached, the buyer can sue for performance or compensation
Sale Deed
This is the final legal document that transfers ownership from seller to buyer.
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Purpose: Confirms the sale and hands over legal title
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Legal Standing: It’s an executed contract—ownership is transferred immediately
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Registration: Mandatory under the Registration Act, 1908
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Risk: Without it, the buyer has no legal claim to the property
