Difference between Sale Deed and Agreement to sell


Agreement to Sell is a legal document wherein the terms and condition of any prospective contract of sale is listed along with the proposed consideration and details of payment for that contract. It is an important document for sale of immovable property.

Sale Deed is based on Agreement to sell only. This helps in forming a better understanding between the parties and their individual roles in the sale of any property. An Agreement to Sale hence explains the willingness of the parties to Buy/Sale a property in question and finishes in the making of the actual sale deed. It cannot be called a Sale Deed because it does not constitute any rights on the property for the buyer.

Sale Deed is a document that actually transfers the rights connected with a property from one party to another. It is normally drafted as a continuation of the agreement to Sale. All the terms and conditions mentioned in the earlier would be fulfilled and mentioned in a sale deed. In short, a Sale deed states more of the transfer of property and rights which forms the crux of it. All other terms and conditions are specified in the agreement to Sale. Hence, the Sale Deed can be drafted briefly.

The most important differences between Sale Deed and Agreement to Sale is are as following:

SR No. Sale Deed Agreement to Sale
1. A sale signifies the immediate transfer of property. It is performed through a Sale Deed. An agreement to Sale implies future transfer.
2. Risks are transferred instantly in Sale. Risks continue with the Seller in case of Agreement to Sale.
3. A Sale is an executed contract. An Agreement to Sale is an executor contract.
4. Violation of Sale can result in a suit for price as well as damages. Any violation of terms of an Agreement to Sale can result only in a suit for damages.
5. A Sale Deed is a compulsorily registrable instrument. An Agreement to Sale is subject to laws of the particular state.


Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.

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