AGREEMENT OF SALE AND SALE DEED
Q. WHAT IS THE DIFFERENCE BETWEEN AGREEMENT OF SALE AND SALE DEED? I AM PLANNING TO BUY A PROPERTY BY PAYING A PART AMOUNT INITIALLY AND REMAINING THROUGH BANK LOAN.
A. AGREEMENT OF SALE constitutes the terms and conditions of sale of a property by the seller to the buyer. THESE TERMS AND CONDITIONS INCLUDE THE AMOUNT AT WHICH IT IS TO BE SOLD AND THE FUTURE DATE OF FULL PAYMENT. Being an important document in the sale transaction, it enables the process of sale to go through without any hurdles. All the terms and conditions included in the agreement of sale must be understood thoroughly by both the parties and obeyed throughout the sale process till the time the sale deed is made. Agreement of sale is the base document on which the sale deed is drafted.
SALE DEED is a document executed at the time of finalizing the sale deal. Once the entire amount is paid and property is conveyed sale deed is executed.