Property Knowledge: What is the difference between sale deed and lease deed, read which property deed is more beneficial

Property Knowledge- Land prices are constantly increasing. Despite the rising land prices, people are putting a lot of emphasis on buying and selling it. 

In this era of rising inflation, it is not common to buy your own house or land. This is the reason why we should know a lot about the property before buying it so that there is no problem later.

As you all know, transfer of property can happen in many ways. You can buy a house, shop or plot through sale deed, lease deed, gift deed or power of attorney.

When you buy a land through a sale deed, you become its owner. On the other hand, when you buy a property through a lease deed, you get the ownership rights only for a fixed period, i.e. the transfer rule of the property. 10 years or 99 years.

The transfer of property ownership from buyer to seller is called sale deed. Sale deed is a stamp paper. It gives complete ownership rights. It is also registered in the local sub-registrar office. The mutation of the property is also done when the sale deed is registered.

Deed Lease

Lease deed is also a way of buying a property. In this, the property is leased for a period of few years to 99 years. In this type of property transfer, the buyer gets all the rights of the property, but these rights are indefinite. 

Lease deed was very popular earlier. Governments often issue resolutions to convert leased property into sale deed property. It is necessary to pay a fee per square foot or per yard to get the property registered.

Sale Deed or Lease Deed: What is the difference?

As per the rules of buying any type of property, the best way to transfer ownership from the seller to the buyer is through a sale deed. The buyer and seller together make a sale deed to buy and sell land in the tehsil. 

It is a legal record of the agreement made by both the parties (seller-buyer). Which describes the property deal. It includes complete information of the seller-buyer, the relevant land, map, proof and stamp. Through this, the seller gives the final rights of the land to the buyer.

The sale agreement ends when the sale deed is registered. It is mandatory to register the sale deed. Until the sale deed is registered, the buyer cannot legally become the rightful owner of the property. 

After registering and mutation of the sale deed, the buyer becomes the permanent owner of the property. On the other hand, a person cannot become a permanent owner through a lease deed. That property can be used only for a fixed period.