You've agreed a price, paid an advance, and signed a document. Does the flat now belong to you? Not yet, and that gap between "agreed" and "owned" is where many Bangalore buyers get into trouble. The two documents involved, the sale agreement and the sale deed, do very different jobs.
A sale agreement is a promise: "I will sell, you will buy, on these terms." A sale deed is the actual handover of ownership, registered with the government. Until the sale deed is registered in your name, the property is legally still the seller's, no matter how much of the price you have already paid.
The Key Differences at a Glance
| Sale Agreement | Sale Deed | |
|---|---|---|
| What it is | A promise to sell in the future | The document that actually transfers ownership |
| Transfers ownership? | No | Yes, once registered |
| Registration | Often optional, but recommended for large advances | Mandatory |
| Stamp duty | Much lower (see below) | Full duty, plus registration fee |
| When it's signed | At booking or advance payment | At final payment and handover |
| Shows up in the EC? | Only if registered | Yes |
What the Sale Agreement Covers
A good sale agreement spells out the deal clearly, so that neither side can later claim a different understanding:
- ● Names and details of the seller and buyer, and a clear description of the property
- ● The total price, and how much is paid now as advance
- ● Whether the advance is a token, a part payment, or a deposit, and what happens to it if the deal falls through
- ● The date by which the sale deed will be executed and registered
- ● Who bears stamp duty and registration charges (usually the buyer in Karnataka)
- ● When possession will be handed over, and what happens on delay by either side
What It Costs
Sources differ here, so check before you budget. The stamp duty on a sale agreement is commonly cited at around 0.5% of the price (with a small minimum) when possession stays with the seller. If possession is handed over under the agreement, it can attract much higher duty, closer to the sale deed rate. Some sources quote different percentages again. Confirm the exact amount for your case with the Sub-Registrar's office or the Kaveri portal.
The sale deed is where the real cost sits. As covered in our Stamp Duty & Registration guide, this is a slab-based stamp duty plus a 2% registration fee, along with any surcharge or cess, which together are often estimated at around 7% to 8% of the property value. Sale deeds in Karnataka are now done on e-stamp paper through the government system rather than physical stamp paper.
A common budgeting question is whether the duty paid on the agreement is credited against the sale deed. Some sources say the agreement duty is adjusted, others advise not to assume it. Ask the Sub-Registrar before you count on any credit.
Where Buyers Get Into Trouble
The risk sits in the gap between signing the agreement and registering the deed. During that window, with a large advance already paid and nothing registered, a seller could in principle:
- ● Mortgage the property to a bank or lender
- ● Sell the same flat to another buyer who registers first
- ● Drag out the registration while holding your money
An agreement that is signed but not registered gives you a contractual claim, but it does not give you the protection of ownership. That is why the practices below matter.
How to Protect Your Advance
For the full set of checks, see our resale flat buying checklist.
Frequently Asked Questions
No. A sale agreement is a promise to sell. Ownership passes only when the sale deed is executed and registered.
Yes. An unstamped agreement can be inadmissible as evidence in court, so it should be stamped at the correct value even though the duty is far lower than for a sale deed.
It depends entirely on what the agreement says. This is why the agreement should state clearly whether the advance is refundable and in which situations.
In Karnataka, the buyer usually bears these costs, but it is a matter of agreement and should be written into the sale agreement.
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View Pricing & Get StartedLast verified: October 2026. Stamp duty on sale agreements and sale deeds is governed by the Karnataka Stamp Act, 1957, and registration by the Registration Act, 1908. Published figures for agreement stamp duty and surcharges differ between sources and change by notification, so always confirm the current amount on the official Kaveri Online Services portal or with your local Sub-Registrar before you pay. This article is general guidance, not legal advice. Have a property lawyer review your agreement before you sign.