What is a title deed?

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The term title deed, is often referred to as the sale deed. We examine whether the two things are one and the same.

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Documents that prove the buyer’s ownership over a specific immovable property are known by various names. While it is sometimes called the sale deed, it is also often referred to as the title deed. Now, are sale deed and title deed different? In case they are different, what is the difference between the two documents? We try to clear the confusion over this recurring question among buyers.

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Title deed: meaning

Among the many meanings, a title is also described as the ‘legal right to own something, especially land or property; the document that shows you have this right’, by the Oxford Dictionary.

Simply put, title deed is that documents that transfers the title of the property from one person to another. 

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In real estate, when you buy a property, you attain legal ownership over the asset though a formal process known as property registration. Through this process, the ‘title’ of the property is transferred in your name. The document through which this process legally takes place, is known as the sale deed. This is precisely why the terms title deed and sale deed are often confused as synonyms.

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Difference between sale deed and title deed

Even though one helps establish the other, one major difference between the two terms is that a title is more of a concept, while a sale is always in a documentary form. Your sale deed is the title deed in the sense that it acts as a statement of your ownership over an asset. The sale deed in fact becomes a title deed, as soon as it is registered, since it acts as a proof that you now hold the ownership over a particular property. Apart from being a statement of the property titles, the sale deed serves several other purposes.

For example, a sale deed also tracks title holders of the property in question. The sale deed, for example, would carry every detail, in case the property has changed hands several times in the past.

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However, there are no specific documents that could be termed as the title deed.

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Legal difference

When looked at from a legal perspective, these two could be differentiated as one being an agreement, while the other a statement. The sale deed contains all the terms and conditions, based on which the buyer and the seller have agreed to enter into the transaction. This very nature grants this legal document that has to be registered in the sub-registrar’s office under the provisions of the Registration Act, 1908, the form of an agreement.

This is not true of a title deed. Although spoken through a sale deed, the title deed is a statement that only pertains to the rightful ownership over a particular property. The title deeds also speak of the rights and obligations of the owner.

Also note here that the sale deed is the document through which the tile of the property is transferred in the name of the buyer. The agreement-to-sell document doesn’t not receive the same treatment.

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