Legal checks
Sale agreement, sale deed and agreement to sell: what each document is
A plain-language explanation of the three documents buyers meet in Karnataka, when each is used, and what to ask a lawyer to check. General information only.
Short answer
An agreement to sell, an agreement for sale under RERA and a sale deed are three different documents with different jobs. This guide explains when each is used in Karnataka, how the three fit together, and what to ask a lawyer to check in each one. It is general information and not legal advice.
Three names, three jobs
Sellers and agents use these terms loosely, and the looseness causes real confusion. This article explains the usual meaning of each. The names can overlap in everyday speech, and the legal effect of a document depends on what it says and how it is executed, not on its title. Have a property lawyer read anything you are asked to sign.
Agreement to sell
An agreement to sell is a contract under which the seller promises to sell and the buyer promises to buy on stated terms at a future time. It records the price, the payment schedule, the description of the property and the conditions that must be met before the sale is completed. Under the Transfer of Property Act, 1882, a contract for sale does not by itself create any interest in or charge on the property, and a sale of such property is made by a registered instrument. So ownership does not pass at this stage. It passes when the sale is completed by the registered deed.
In ordinary use, buyers and sellers sometimes call this document a sale agreement or an agreement of sale. The words are not fixed, which is why you should read the clauses instead of relying on the heading.
Agreement for sale under RERA
For a RERA-registered project, the Act uses the term agreement for sale, meaning an agreement between the promoter and the allottee, and says it is to be in the prescribed form. The Karnataka rules and the regulator's portal are where that format is published. The Act also limits how much a promoter may accept as an advance or application fee before a written agreement for sale has been entered into and registered, as set out in Section 13. Check the current text of the Act and the Karnataka rules, listed in the sources, for the exact position.
Under the Act the agreement for sale specifies particulars such as the development of the project, the specifications, the dates and manner of payments, the date of possession and the rates of interest on default. It usually also covers the carpet area, the price and what it includes. A promoter's marketing promise is safest when it is repeated here, since the agreement is what both parties are bound by.
Sale deed
The sale deed is the document that transfers ownership. Under the Transfer of Property Act, a sale of tangible immovable property of the value of one hundred rupees or more can be made only by a registered instrument, and the Registration Act, 1908 lists documents of this kind among those that must be registered. It is signed by the seller and the buyer, stamped with the stamp duty payable and registered at the Sub-Registrar office. For the process in Karnataka, see our guide on stamp duty and registration on Kaveri and the registration department's own pages.
In an under-construction purchase the sale deed is executed later than the agreement for sale. Section 17 of the RERA Act requires the promoter to execute a registered conveyance deed and hand over possession within the period under local laws or, where there is no local law, within three months of the occupancy certificate, so read the timing in your agreement. In a resale of a completed property, the agreement to sell and the sale deed may follow each other closely.
How the three fit together
Think of the agreement as the promise and the deed as the performance. The first sets out what will happen and when. The second makes it happen. If something goes wrong between the two, such as a delay or a dispute over a condition, the remedies come from the terms of the agreement and from the law that governs it.
- Booking or token: a small payment that reserves a unit, usually with a form that sets conditions.
- Agreement for sale or agreement to sell: the main contract before the sale is complete.
- Sale deed: the registered document that transfers title.
- Possession: the handover of the unit, which may be recorded separately.
What to check in the agreement
Read the draft before you pay beyond a small token. Look for the registration number of the project, the exact unit and tower, the carpet area, the price and what it includes, the schedule of payments and the possession date. Check the clauses that cover delay, cancellation and refund, and any clause that lets the seller change the plan.
Ask what happens to the amounts you pay and how the promoter handles the bank account for the project. At registration the promoter declares that a stated portion of buyer money will go into a separate project account. Our guide on the escrow rule gives the short statement.
What to check in the sale deed
On the deed, the names, the property description, the boundaries or unit details and the consideration should match the agreement and the title documents. Check that the stamp duty and registration charges were paid on the correct value and that the deed was registered at the right office. Ask for the registered copy, not only a photocopy of the draft.
If a loan finances the purchase, the lender usually keeps the original documents until the loan is repaid and will have its own requirements about the chain of papers.
Common confusions
A receipt is not a deed. An allotment letter is not a deed. A power of attorney is a different instrument, and relying on one in place of a registered deed carries risks that a lawyer can explain. If anyone tells you a flat can be bought through an unregistered paper, ask a lawyer before you pay.
What we cannot tell you
- We cannot interpret an agreement you have been given. Its effect depends on its exact words and on your facts.
- We cannot tell you whether a clause is fair or standard. A lawyer who regularly handles Karnataka property can.
- This article is general information, not legal advice, and the law and the model forms can change.
Common questions
- Does ownership pass when I sign the agreement to sell?
- Generally not. Ownership passes when the sale deed is executed and registered.
- Where is the sale deed registered?
- At a Sub-Registrar office of the Department of Stamps and Registration, which also runs Kaveri Online Services. Check Kaveri for the current online steps.
- Is a booking receipt a legal agreement?
- A receipt records a payment. Read what it says, and do not treat it as a substitute for the agreement for sale or the deed.
- What should the agreement for sale mention?
- The project's RERA registration number, the unit, the carpet area, the price, payment schedule, possession date and remedies for delay.
Sources
Read against these official sources on 18 Oct 2026. Rates, fees and procedures change, so check the current position on each site.