The real estate industry is massive. If you are linked to this industry, you must know the two main aspects of this industry. The first one is the sale and purchase of property, while the other one is legal compliance and documentation. You must be aware of both aspects because this will determine the success of your business. However, many people lack awareness of certain legal terms used in this industry.

They often use terms like title deed and sales deed interchangeably. That’s why it’s crucial to understand the key difference between a title deed and a sales deed. Also, you must have observed that nowadays most builders and property owners prefer automation in the process of document management. This blog will tell you the exact difference between the deeds and how a document management solution can help automate the entire process.

What is a Title Deed in Real Estate?

A title deed is a certificate that signifies property ownership. It’s a valid and official document that states a specific property is legally yours. This document contains every detail that confirms the property ownership. Details like the owner’s name and property view are mentioned in this deed.

If your name is mentioned in the title deed, this means the property is registered and legally belongs to you. After knowing about the title deed meaning, you might have understood the fact that it’s an important element in several property transactions.

Since it is an important element and acts as proof of your ownership, it is required at each step. From property resale to a loan application, a title deed is necessary. If you do not have a valid deed, then you might face difficulties in claiming ownership rights for a property.

What is the Use of a Title Deed?

You must be curious to know about the use of a title deed. This deed is used in scenarios like:

• Loans: If you want a loan against a property, then a valid title deed is required. Banks would demand a title deed for sanctioning the loan.
• Resolving Disputes: You would require a title deed to resolve ownership disputes.
• Succession: This deed would be required if you are planning to pass your property to heirs.
• Gift: You will require this deed if you are considering gifting a property to your loved ones.

These were the uses of the title deed. In the upcoming sections, you will get to know about the features of this deed.

What are the Key Features of a Title Deed?

This deed speaks about the legal ownership of a particular property. Here are the key features of this deed that you must know about, such as:

• Owner’s Name: This deed specifies the details about the owners who legally own the property.
• Property Details: This deed specifies the details about the property, such as its location of the property.
• Disruptions: This deed specifies if there are any disruptions, disputes, or any legal claims attached to the property.
• Ownership History: This deed specifies past owners’ details, if any.

Well, these were the key features of this deed. Now, in the later sections, we will grasp knowledge about the meaning of the sales deed and the key differences between the two.

What is a Sales Deed in Real Estate?

A sales deed or deed of sale is a legally binding document that states the transfer of ownership from seller to buyer. Well, this is an official record that states how ownership is being transferred from one person to another. If you have questions like Why is this deed crucial? Here is the answer to the same: This deed is crucial because it acts as proof in real estate property transactions.

You must be wondering what would happen if you do not have a sales deed? Well, if you don’t have a registered and valid sales deed, the transfer of ownership is deemed to be illegal. You might face legal troubles in the near future.

What Documents are required for the Sales Deed?

Here is the detailed list of the necessary documents that would mark your sales deed complete:

• Sales Agreement
• Payment Receipts
• Property Tax Receipts
• Encumbrance Certificates
• Copy of Layout Plan
• No Objection Certificate (NOC)
• Completion Certificate
• Occupancy Certificate
• Possession Letter
• Allotment Letter
• General Power of Attorney (GPA)

You must ensure that you have all these documents to avoid any kind of hassle.

What are the Key Features in a Sales Deed?

1. Buyer and Seller Information: The sales deed gives the information of both parties, i.e., the buyer and seller.
2. Sale Agreement: The Sale Agreement specifies terms and conditions agreed by both parties at the time of sale.
3. Property Information: Property information in a sales deed specifies details about the sold property.
4. Payment Information: Payment information in a sales deed specifies the payment mode and payment date.
5. Witness and Signature: This deed specifies the signatures and witnesses of both parties.

Key Difference: Title Deed Vs Sales Deed

To get property ownership, you would require a title deed and a sales deed. As discussed earlier, people often use these terms interchangeably. However, there are key differences between the two. Here is a tabular representation of the same:

How Automation Helps in Document Management?

Automation changes everything. If you are a builder or project developer, you know how cumbersome it gets to manage documentation of multiple properties altogether. Managing deeds and certificates without keeping a proper track would result in misplaced documents.

Automation completely reverses this situation. The biggest question here is how to automate the same. Well, a reliable real estate CRM provides a document management solution where you can simply collect, manage, and optimize every document. It provides a centralized dashboard that stores everything in one place.

To Wrap Up

The bottom line is that the title deed and the sales deed are not just legal words. They secure the property rights. Purchase and sale of property and document management go hand in hand.

If you belong to the real estate industry, it’s crucial to know the exact difference between a title deed and a sales deed. This helps in avoiding any kind of confusion in the future.

Apart from that, Homelead offers document management solutions to builders, project developers, and real estate firms, where they can centralize document-related data from different projects.