Agreement Vs Registry of Property
Agreement vs Registry of Property: What`s the Difference?
When it comes to property transactions, there are two terms that are often confused: agreement and registry. While both are important in the transfer of property ownership, they serve different purposes and have different legal implications. This article aims to clarify the differences between agreement and registry of property.
What is an Agreement for Sale?
An agreement for sale is a legal document that outlines the terms and conditions of a property sale between a buyer and a seller. It is a contract that sets out the price, payment schedule, possession date, and other details of the transaction. The agreement for sale is signed by both parties and serves as proof of the transaction. However, it does not transfer ownership of the property.
The agreement for sale is often used in cases where the buyer needs time to arrange for financing or other aspects of the sale. Once the conditions set out in the agreement are met, the sale can proceed to the next step – the registry.
What is the Registry of Property?
The registry of property is a legal process that officially transfers ownership of the property from the seller to the buyer. It involves registering the property transfer with the relevant government authority, such as the Land Registry Office in India. The transfer is recorded in the property records and updated to reflect the new ownership.
The registry of property is an important step in the property transaction process because it provides legal proof of ownership. It is also necessary to establish clear title to the property, which is essential for future transactions such as sale or transfer of ownership.
Agreement vs Registry of Property: Which is More Important?
Both agreement and registry of property are important in the property transaction process, but they serve different purposes. The agreement for sale is a contract that outlines the terms and conditions of the transaction, while the registry of property is the legal process that officially transfers ownership of the property.
While the agreement for sale is important in setting out the terms of the transaction, it does not provide legal proof of ownership. On the other hand, the registry of property is a legal requirement for the transfer of ownership and provides clear title to the property.
Final Thoughts
In conclusion, agreement and registry of property are two essential steps in the property transaction process. The agreement for sale is a contract that outlines the terms and conditions of the transaction, while the registry of property is the legal process that officially transfers ownership of the property. Both are important in their own ways, and it is important to understand the differences between them in order to avoid misunderstandings and legal issues in the future.
