Sale deed vs agreement to sell vs GPA: which one transfers ownership?
Only a registered sale deed transfers ownership of Delhi property. An agreement to sell is a promise to sell later. A power of attorney sale does not pass title, as the Supreme Court held in Suraj Lamp (2011). A buyer should insist on 1 thing: a registered sale deed in their name.
· By Raghav Chopra, founder, in South Delhi real estate since 2010
What does each document do?
A sale deed is the instrument that moves ownership from seller to buyer. Under Section 54 of the Transfer of Property Act, a sale of immovable property worth Rs 100 or more must be made by a registered instrument.
An agreement to sell records the terms on which a sale will happen later. It does not by itself create an interest in the property. A general power of attorney (GPA) lets someone act for the owner, but the owner stays the owner.
Why are GPA sales risky?
In Suraj Lamp and Industries v State of Haryana (2011), the Supreme Court said that sale by GPA, agreement to sell with a power of attorney and a will does not transfer title to immovable property. Buyers who rely on these papers hold a weaker claim than a registered deed gives.
The seller can die, the power of attorney can be cancelled, and the property can be sold again to someone with a registered deed. Raghav Chopra asks for the registered chain of deeds on every property.
When do you sign an agreement to sell?
An agreement to sell is normal in a Delhi deal. It follows the token and the document check and sets the price, the payment schedule and the date for the sale deed. In Raghav Chopra's deals it is signed within about 2 weeks of the token, and the buyer then has time to complete payment and registration.
Have your lawyer read it. It should name the property exactly, list the documents handed over and say what happens to your money if either side backs out.
What must a sale deed contain?
A sale deed names the parties, describes the property by plot, floor and boundaries, states the price paid and recites the seller's title. It lists any share of land, terrace or parking sold with the floor, and it is signed before the sub-registrar with witnesses.
Read the schedule of property line by line. A floor sold without a clear land share, roof right or parking right leads to disputes later.
The three documents compared
| Document | Transfers title? | Registered? | Stamp duty | Risk |
|---|---|---|---|---|
| Sale deed | Yes | Yes, it must be | 6% male, 4% female, 5% joint, plus 1% registration as of October 2026 | Low, if the title chain is checked |
| Agreement to sell | No, it is a promise | Your lawyer advises | Varies; ask the sub-registrar | The seller can default or sell again |
| General power of attorney | No | Your lawyer advises | Varies; ask the sub-registrar | High: no title passes |
Stamp duty rates are from the Delhi Revenue Department; the joint rate is as confirmed by Raghav Chopra. Confirm the figure on your deed with the sub-registrar.
Frequently asked questions
Is a registered agreement to sell the same as a sale deed?
No. Registering an agreement to sell makes the promise easier to prove, but it still does not transfer ownership. Only the registered sale deed, signed after the agreement's conditions are met, moves title to you. Do not treat the agreement as proof that you own the property.
Can I buy a Delhi property on a GPA?
You can sign one, but it does not make you the owner, and the Supreme Court has said such sales do not transfer title. If a seller offers a GPA sale to save duty, treat it as a warning sign and ask for a registered sale deed instead.
Who pays stamp duty on an agreement to sell?
It depends on the terms of the agreement, for example whether possession is handed over, so ask the sub-registrar or your lawyer before you sign. The main duty is on the sale deed, charged on the higher of the price and the circle-rate value.
What if the seller refuses to register after the agreement?
Your remedy is in the agreement and in law: you can ask a court to order the seller to perform, or claim damages. This is slow, which is why the agreement should be drafted carefully and why Raghav Chopra checks the title before any token is paid.
This is general information, not legal or tax advice. Confirm with your CA or lawyer before acting.
Related reading
More guides from Raghav
Talk to Raghav
One person, start to finish. Your message goes to Raghav, not a call centre.