When buying a property, terms like sale deed and title deed are often used interchangeably. However, they are not the same. Let’s break down the key differences.
📜 1. Sale Deed vs. Title Deed: Understanding the Basics
- A title deed is a concept, not a specific document. It represents ownership rights over a property.
- A sale deed is a legal document that transfers ownership from the seller to the buyer.
🏡 2. Legal Differences Between Sale Deed & Title Deed
- A sale deed is an agreement between a buyer and seller that finalizes the property transfer.
- A title deed is a statement proving ownership and outlining rights, obligations, and liabilities.
💡 Once a sale deed is registered, it serves as a title deed, confirming ownership.
🔍 3. How a Sale Deed Traces Property Titles
- Before registering a sale deed, sellers must provide a chain of ownership records to prove clear title history.
- A sale deed becomes part of this chain and ultimately acts as a title document.
