Difference between Deed of Transfer and Agreement for Sale

When it comes to purchasing property, there are various legalities involved that must be followed to ensure everything is done correctly and smoothly. Two of the most common documents used in property transactions are the Deed of Transfer and the Agreement for Sale. While these documents both deal with the transfer of property ownership, they have significant differences that individuals should be aware of.

Deed of Transfer

A Deed of Transfer, also known as a Transfer Deed, is a legal document that transfers ownership of a property from the seller to the buyer. This document is used when the property is sold entirely, and the buyer becomes the new legal owner of the property.

The Deed of Transfer contains details of the property being transferred, including its address, a brief description, and the parties involved in the transaction. It also includes any rights attached to the property, such as easements, mortgages, and liens. The document must be signed by both the seller and the buyer in the presence of two witnesses.

Once the Deed of Transfer is executed, it must be registered with the relevant Land Registry to make sure that the new owner`s name is officially recognized as the legal owner of the property.

Agreement for Sale

An Agreement for Sale, also known as a Contract for Sale, is a legal document that outlines the terms and conditions of a property sale before the legal transfer of ownership occurs. This document is used when a property is sold on the basis of installments, and the buyer becomes the legal owner once the full payment is made.

Agreement for Sale includes details of the buyer and the seller, the property being sold, the price, and the installment schedule. This document must be signed by both parties and notarized in the presence of two witnesses.

The agreement for sale must also be registered with the relevant Land Registry, and the transfer of ownership must occur once the full payment is made by the buyer.

The Difference between Deed of Transfer and Agreement for Sale

The primary difference between the Deed of Transfer and Agreement for Sale is the timing of the transfer of ownership. In the case of the Deed of Transfer, the legal transfer of ownership happens immediately after the document is signed by both parties and registered with the relevant Land Registry. While in the case of the Agreement for Sale, the legal transfer of ownership happens only after all the installments have been paid.

In conclusion, the Deed of Transfer and Agreement for Sale documents are essential legal documents that play a crucial role in property transactions. Buyers and sellers must understand these documents` differences to ensure that they select the right document for their property transaction. It is essential to consult with a real estate lawyer or an experienced professional before executing any of these documents to make sure everything is done properly and legally.