An agreement of sale is when a transfer of property is on a future date and is the subject of further terms and conditions. When the terms and conditions are met or when the time lapses for the property are transferred, the agreement of sale becomes a sale. A sale deed is made if it is subject to an immediate transfer of property. Otherwise, it is an agreement of sale. An agreement of sale is drafted for the sale of immovable property.
Agreement of Sale
An agreement of sale is a letter of agreement where the terms and conditions of a possible contract of sale are created along with the offered amount and payment details.
A sale deed is a document that tranfers the rights of one party with a property of another property. All the terms and conditions mentioned in the agreement of sale will be met on expectations in the sale deed.
Differences between a sale deed and an agreement of sale
A sale refers to the immediate transfer of the property. It is made possible through a sale deed, while an agreement of sale suggests future transfer.
The risks in the sale are transferred immediately, whereas they remain with the seller in the case of agreement of sale. A sale is an executed contract, whereas agreement of sale is an executor contract.
As such, there is possibility of breach of sale occurring in a suit for the price as well as damages, while any kind of breach of terms and conditions of an agreement of sale will happen only in the suit for damages. A sale deed is thought as a required registered instrument whereas an agreement of sale differs from state to state.