The Difference between Sale Deed and Title Deed

Just like any other industry, real estate has its own terminology too. If you have spent some time working in or for the industry, you must be familiar with real estate jargon but if you are new to the field, you might still feel a bit stuck with a number of industry-specific terms. Sale deed and title deed are two such terms that leave you in disarray. While the two terms are used interchangeably more often than not, both are different in terms of their meaning, perception and application.

The following are the main differences between the two:

Form: The first main difference between the sale deed and the title deed is their form. While the former is a document, the latter is just a concept.

As per the definition, a sale deed is a legal document which encompasses a legal statement convening the title on the owner of a particular property. For instance, if you have purchased a 2bhk flat in Ghodbunder Road, Thane, you will have to sign a sale deed document which is a proof of your ownership. It also signifies the completion of the process and makes you the legal owner (conferring the title) of the property purchased by you.

Legal difference: In legal phraseology, you call a sale deed an “agreement”. Just like in any other transaction, there should be at least two parties involved in the buying and selling of a particular property. Sale deed, as an agreement, takes into consideration the details of both buyers and sellers involved in a property deal. It is then signed by both the parties on each page ensuring the completion of the property registration process.

On the other hand, a title deed is not a document or agreement but simply a statement talking about the legal ownership of a buyer when he purchases a new property.

For instance, after the completion of your search for the best 2 bhk flats for sale in Goregaon, East Mumbai, you finally settle for a flat that’s not only lavish but also worth the investment. All the verbal settlements have also been done with the seller. Now it’s time to involve legal proceedings so as to make yourself a legal owner of this property. To do so, you have to sign the sale deed along with the seller. This sale deed is an agreement (in document form) which makes you the legal owner of the flat just bought by you. In the agreement, you will find a statement suggesting the legal ownership of the flat. This statement is what you call a “title deed”.

Another important point to focus here is that the sale deed gets converted into the title deed once the property purchased by you gets registered. Moreover, title deed also discusses your rights and obligations as the property owner.

Creation: The drafting of a sale deed is done after the seller provides all the necessary information regarding the property that he intends to sell. As a consequence, documentary proof tracking can be done effectively. Eventually, when sale converts itself into a title document, it becomes a part of this chain.