Agreement to sell vs sale deed: what's the difference?
An agreement to sell is a promise; the sale deed transfers ownership. Here's what each contains and when you sign them.
Buyers often confuse the two main documents in a property purchase.
Agreement to sell
- A promise to sell on agreed terms in the future
- Signed after token and basic checks
- States price, payment schedule, timelines and conditions
- Does not transfer ownership
- Usually accompanied by a significant part-payment
Sale deed (conveyance deed)
- The document that transfers ownership
- Executed and registered at the Sub-Registrar's office
- Stamp duty is paid on it
- Signed by buyer, seller and two witnesses
Typical sequence
- Token and receipt
- Due diligence on title
- Agreement to sell, with part-payment
- Loan disbursement (if any)
- Sale deed registration and balance payment
- Possession and keys
- Mutation in MCD records
Why the difference matters
Until the sale deed is registered, you are not the legal owner. The Supreme Court has made clear that agreements, GPAs and wills don't transfer title — read why GPA sales are risky.
What an agreement to sell should cover
- Property description, including plot, floor, built-up area, parking and terrace rights
- Total price and payment schedule
- Seller's assurances about clear title and no encumbrances
- Handover condition and list of fittings
- Timeline for the sale deed and possession
- Remedies for delay or default
- Who pays which costs
Should the agreement be registered?
In Delhi, many agreements to sell are executed on stamp paper without registration. Registering an agreement involving possession gives stronger protection, but it attracts stamp duty. Take legal advice based on your deal.
What the sale deed contains
- Recitals tracing the seller's title
- Consideration and payment details
- Transfer of ownership, including the land share
- Possession and delivery of documents
- Indemnities from the seller
Frequently asked questions
Can a seller back out after the agreement? Not without consequences. A buyer can seek specific performance through the courts, which is why a well-drafted agreement matters.
