What Is A Title Deed?

Those entering the world of property purchase have to enrich their vocabulary before they approach this uncharted territory in order to keep the process commotion-free. While you are at it, it is important to understand the difference between sale deed and title deed, the things that prove your ownership over a property. While you may have assumed the two things to be one and the same, that is not the case. Let us understand what the two terms are and they differ from each other.

Sale deed is a document but title deed is a concept

After a buyer and a seller reach an agreement to carry out a property transaction based on certain terms and conditions, they have to formalise the process in order to prove that the said property has seen change of ownership. They then have to prepare a document, known as sale deed, where every single detail related to the transaction is mentioned. According to the Registration Act, 1908, this document must be registered to become legally valid.  As soon as a sale deed is registered, it becomes a legal proof that the title of the property has been transferred in the name of the buyer. It is in this capacity that sale deed becomes a title deed. That way, a sale deed is also a title deed.

Also Read: How sale deed is executed

Sale deed is an agreement but title deed is statement

Sale deed is an agreement. And, two parties must be involved to make an agreement. This is precisely why all details related to the buyer/ buyers and the seller/sellers are mentioned in a sale deed even though the ultimate purpose of this document is to state that so and so property has been transferred in the name of such and such person. Because this document proves the ownership of the buyer it by default becomes a statement about the title of the property, hence the name title deed. Also, at the time of property registration, the transacting parties have to establish past ownership and title transfer of the asset. A sale deed is a documentary proof of that too.