What is the difference between an agreement for sale and a sale deed?
An agreement for sale is the registered contract you sign with a developer: it fixes the plot, price, payment schedule, amenities and completion date. The sale deed (or conveyance) is the later document that actually transfers ownership into your name, usually at possession. Under RERA, a developer cannot take more than 10% of the price before the agreement for sale is registered.
| Agreement for sale | Sale deed / conveyance | |
|---|---|---|
| What it does | Promises to sell on agreed terms | Transfers ownership |
| When | Soon after booking, before you pay over 10% | At or after possession, once fully paid |
| Registration | Must be registered | Must be registered |
| Stamp duty | Usually paid here in Maharashtra | Duty already paid is adjusted |
| Who owns the plot after signing | The developer, with your contractual rights | You |
When is stamp duty paid?
In Maharashtra, stamp duty is normally paid when the agreement for sale is registered. In a September 2024 ruling (Shyamsundar Radheshyam Agrawal v. Pushpabai Nilkanth Patil), the Supreme Court held that an agreement for sale that hands over possession counts as a conveyance under the Maharashtra Stamp Act, so full duty is due when it is signed; duty paid then is adjusted against the later deed.
What to check in the agreement
- Plot number, area and boundaries match the approved layout
- Total price, what "all-in" includes, and the payment schedule
- Amenities committed, with dates
- Completion date matches the MahaRERA record
- Maintenance charges and when they start
- How any lender's charge on the land is released
- Compare against the model agreement uploaded on MahaRERA
Before signing, check the key documents and work out stamp duty.
Frequently asked questions
Does an agreement for sale give me ownership?
No. It gives you contractual rights to buy. Ownership passes when the sale deed or conveyance is registered.
Is it mandatory to register an agreement for sale in Maharashtra?
Yes, for a developer project under RERA, and stamp duty is paid on it at registration.
Do I pay stamp duty twice?
No. Duty paid on the registered agreement for sale is adjusted against the duty on the later sale deed.
Sources
- LiveLaw (Sept 2024): Agreement for sale conveying possession must be stamped as conveyance
- Taxmann: Allotment letters, agreements for sale and sale deeds under RERA
General information, not legal, tax or financial advice. Rules and rates change; confirm with the sub-registrar, your bank or a chartered accountant before acting.