While the two terms are often used interchangeably in the world of real estate, sale deed and title deed are not the same things. In this article, we would talk about how is one different from the other.
In Form: Title is a concept, deed is a document.
There are no specific documents known as title deed, as it the case with sale deeds. Title is simply a concept. A sale deed, which always has a documentary form, is a legal statement that confers this title on the owner. After you purchase a property and the registration is carried out, the buyer would receive a sale deed in a documentary form, which would confer upon him the tile of the said property.
Legal difference: Sale deed is an agreement; title deed is a statement.
In legal parlance, a sale deed is an agreement to sell a property to a buyer. As it typical of all agreements, at least two parties are involved in the transaction ─ at least one buyer and one seller. This is why the details of both the parties are mentioned in this document. Both the buyer and the seller have to sign on each page of the sale deed at the time of property registration for the same reason.
A title deed on the other hand is not an agreement, but a statement. It only talks about the rightful ownership of a person over a particular property. Apart from the ownership, title deed also speaks of rights, obligations and mortgage obligations of the owner. Do note here that sale deed becomes a title deed as soon as it is registered. A registered sale deed is a proof that a particular person now holds the ownership over a particular property.
In details: Sale deed traces titles
To register a property, the seller has to produce all past records related to a property, based on which a sale deed is created. This is to say, there should be a chain of documentary proof tracking the original ownership if a property and the change in the ownership thereof. Ultimately, a sale deed becomes a link in the chain, taking the form of a title document.