Title vs. Sale Deed
- Dr. Rameshwar Dayal
Title deed vis-a-vis sale deed
Title is a concept. There are no specific documents known as title deed.
A sale deed is a document that makes legal statement regarding conveyance of title to the purchaser, once it is registered with the authorities for registration.
Legal difference: Sale deed is an agreement; title deed is a statement.
In legal parlance, a sale deed is a contract to sell a property to a buyer.
[ ] It involves at least two parties to the transaction ─ one seller and one buyer.
[ ] Details of both parties are mentioned in the sale deed.
[ ] Sale deed recites the source of vendor's title i.e. a complete chain of documentary proof tracking the original ownership of a property and the changes taken place in the ownership thereof upto the present vendor of the property. Sale deed thus traces titles.
[ ] Sale deed recites consideration and its transfer between the vendor and buyer.
[ ] Sale deed is signed by both parties i.e. vendor and Buyer.
[ ] Sale deed is presented to the registration authorities for its registration.
[ ] Registration authority satisfies itself that:
1. Executor of sale deed appears before it (Section 34 Registration Act);
2. Executor is identified (section 34 Registration Act);
3. Sale deed was executed by him (section 34 Registration Act).
[ ] Obligations of vendor (Section 55 of the Transfer of Property Act, 1882):
1. Seller is bound to disclose to the buyer the defect in the property or in his title {section 55 (1) (a) of TPA};
2. Seller is bound to produce to the buyer all documents of title relating to the {section 55 (1) (b) of TPA};
3. Seller is bound to answer all relevant question put to him by buyer regarding the property or its title {section 55 (1) (c) of TPA};
4. Seller is bound to execute a proper conveyance of the property on receip of consideration from the buyer {section 55 (1) (d) of TPA};
5. Seller is bound to take care of the property and its title documents till the same are delivered to the buyer {section 55 (1) (e) of TPA};
6. Seller is bound to handover possession of the property to the buyer {section 55 (1) (f) of TPA};
7. Seller is bound to pay all public charges in respect of property upto the sale of the property {section 55 (1) (g) of TPA};
8. Seller must have the property subsists and must have power to transfer its subsisting interest/ property {section 55 (2) of TPA};
9. On receipt of whole of purchase money, Seller is bound to hand over to the buyer all documents of title relating to the property {section 55 (3) of TPA};
10. Any omission to make disclosure in para 1 sub clause (a) is fraudulent.
[ ] Once registered, sale deed becomes the proof that a particular person i.e. buyer now holds the ownership over the property mentioned in the sale deed.
[ ] Ultimately, a sale deed becomes a link in the chain, taking the form of a title document.
A title deed on the other hand is not an agreement, but a statement. It only talks about the rightful ownership of a person over a particular property. Apart from the ownership, title deed also speaks of rights, and obligations of the owner.
