An agreement to sale is a promise to transfer property in the future on agreed conditions; a sale deed is the document that actually transfers ownership. In Maharashtra, an agreement to sale where possession is given is stamped like a conveyance (about 6–7% in Pune), so when the sale deed or conveyance follows, earlier duty is set off. Both must be registered at the Sub-Registrar office to be valid evidence.
The core difference
| Agreement to sale | Sale deed | |
|---|---|---|
| Nature | Executory — promise to sell in future | Executed — sale completed |
| Ownership | Stays with seller | Passes to buyer |
| Legal remedy on breach | Specific performance / damages | Buyer is owner; can defend title |
| Stamp duty in Maharashtra | Full conveyance rate if possession given | Conveyance rate (set-off for duty already paid) |
| Registration | Required when duty is paid on it; RERA requires for builder flats | Compulsory |
| Used by banks | To sanction loans for under-construction / resale | As final title document |
Why Maharashtra is different
In most states the agreement to sell is cheap and the sale deed carries the full duty. Maharashtra’s Stamp Act (Article 25, Explanation I) treats an agreement for sale under which possession is delivered or agreed to be delivered as a conveyance. So when you book a flat from a builder in Hinjewadi or buy a resale flat in Hadapsar, you pay full stamp duty on the registered agreement itself.
For a flat in a housing society, that registered agreement plus possession effectively makes you the owner; years later, the builder executes a conveyance in favour of the society (not each flat owner) for the land and building. For plots, bungalows and land, a separate sale deed is still normally executed.
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RERA rules for new flats
Section 13 of the Real Estate (Regulation and Development) Act, 2016 bars a promoter from accepting more than 10% of the flat cost as advance without first executing a registered agreement for sale. MahaRERA prescribes a model agreement containing carpet area, possession date, defect liability (five years) and refund terms. Check that your agreement follows it and quotes the MahaRERA project registration number.
Which document do you need, and when?
- Booking under-construction flat → registered agreement for sale before paying more than 10%.
- Buying resale flat with home loan → registered agreement for sale (with possession, full duty) — banks disburse against it.
- Buying land or a bungalow → agreement to sale (if payment is staged) followed by a registered sale deed.
- Deal called off → registered cancellation deed and stamp duty refund claim.
Buyer’s checklist before signing either document
- Title search for at least 30 years and encumbrance check.
- Index-II of the seller’s purchase.
- Society NOC and no-dues, share certificate.
- Occupancy certificate and approved plan (new projects: RERA registration).
- Ready reckoner value check, to estimate stamp duty.
- TDS under Section 194-IA if price is ₹50 lakh or more.
- Payment only by banking channels, recorded in the document.
Frequently asked questions
Does an agreement to sale give ownership?
No. Under Section 54 of the Transfer of Property Act, an agreement to sale does not create any interest in the property. Ownership passes by a registered conveyance. In Maharashtra, an agreement with possession is stamped as a conveyance and, in practice for society flats, serves as the buyer’s title document.
Is stamp duty payable twice — on agreement and sale deed?
No. Duty paid on a registered agreement for sale is set off against duty on the later conveyance between the same parties for the same property, so only the difference, if any, is paid.
Can a seller back out after an agreement to sale?
The buyer can sue for specific performance of a valid registered agreement, and the agreement usually provides for forfeiture or double refund of earnest money.
What is the time limit to register an agreement to sale?
Like other documents, within four months of execution under Section 23 of the Registration Act.
Do I need a sale deed for a flat in a cooperative society?
Usually not separately. The registered agreement for sale plus possession and share certificate transfer is the standard title. The builder later executes a conveyance of land and building in favour of the society.
Disclaimer: This guide is general information based on the Maharashtra Stamp Act, 1958 and the Registration Act, 1908 as applied in 2026. Stamp duty rates, ready reckoner values and procedures change; confirm the figure for your document with us or on the IGR Maharashtra portal before paying.