Agreement to Sell vs Sale Deed: What You Sign and When

Two documents carry a property purchase in India, and confusing them is among the commonest sources of buyer anxiety. Understanding agreement to sell vs sale deed India transactions rely on comes down to timing and effect: one records what will happen and on what terms, the other transfers ownership. They are signed at different points and they do different work.

At MAIA Yelahanka the agreement to sell arrives first. It is executed at formal launch, once Karnataka RERA registration has been issued — registration being the point at which a project may lawfully be sold at all. The agreement sets out what is being sold, at what price, against which plot, and on what schedule. From its execution the construction-linked payment plan begins running, with instalments tied to build milestones rather than calendar dates.

The sale deed conveys ownership and typically follows later in the process, once the obligations recorded in the agreement have been performed. Because the sequencing, the precise triggers and the documentation required vary with the transaction and with prevailing practice, the timing that applies to your purchase should be confirmed with your own lawyer against your own agreement rather than inferred from a general article.

Statutory charges attach around these events. Karnataka stamp duty runs at approximately 7.65% and becomes payable at registration of the agreement, as a single event. GST applies at 5% on under-construction units and attaches to instalments as they fall due, so it spreads across the construction period alongside the principal. Neither charge is negotiable and both scale with ticket size, which at Rs 22 Cr and above makes them a material line rather than a closing detail.

Three things to do rather than assume. Read the agreement in full before signing, with a lawyer who acts for you rather than for the transaction. Verify the project's registration number independently on the Karnataka RERA portal at rera.karnataka.gov.in and check the filed particulars against what the agreement states. And keep every executed document together from the outset. This article is general orientation and not legal advice — reviewing the the booking sequence will tell you where the project currently stands.

Related reading: Registration Day: The Process From Start to Finish.

FAQs

1. Which document comes first?
   The agreement to sell. At MAIA Yelahanka it is executed at formal launch, once Karnataka RERA registration has been issued.

2. When is stamp duty payable?
   Karnataka stamp duty of approximately 7.65% becomes payable at registration of the agreement. GST at 5% attaches separately to instalments on under-construction units.

3. Should I have a lawyer review these?
   Yes. Engage a lawyer acting for you, and verify the project's registration independently on the Karnataka RERA portal.