A Quick Guide to Understanding What is the Title Deed of Property?

A Quick Guide to Understanding What is the Title Deed of Property?

When buying a home or a property, learning about the common terminologies used in the real estate market is prudent. Equipping oneself with basic knowledge of such jargon can help ease the purchase or sale process. For example, among various terminologies, the title deed is one of the most widely used terms in the transaction process.

Sometimes, title deeds of the property are interchangeably used as sale deeds. The article below sheds light on what is a title deed, its types, benefits, and whether a sale deed and a title deed are the same.

Title Deed Meaning

To begin with, one first needs to understand what the word ‘deed’ means. A deed is a signed legal document mentioning who owns, transfers, or inherits a particular property or asset.

Thus, a title deed is a legal document that states how the property is inherited, owned, transferred, or allotted. In addition, this document includes information about the rights of a person over a property or land. Thus, the ownership rights are transferred from one individual to another through the title deed of the property. For example, when a buyer purchases a home, the registration is made in the buyer’s name to make them the formal owner. Thus, the ‘title’ of the property (flat/unit) is changed through this procedure. The sale deed (a type of title deed) is the legal instrument that permits this procedure. Hence, although they are different, sale deeds and title deeds are often used interchangeably during the purchase or sale of a home.

What is a Title Deed Certificate?

A certificate of title, also referred to as a title deed certificate, is an official document issued by an authority, typically a municipality or any official state authority, which identifies the owner or owners of the property. This certificate mentions details on a person’s ownership rights on the property.

A Title Deed certificate may or may not be issued depending on the state or location the procedure takes place. For example, authorities in Mumbai typically do not issue title deed certificates.

Advocates, solicitors or members of the law, on the other hand, can issue title certificates to their clients after due investigation of the property.

Types of Title Deeds

Some of the common types of title deeds include:

  • Sale Deed

    One of the most common types of title deeds of property is a sale deed created while selling the property to the buyer. This legal document enables the property owner to transfer ownership rights to the buyer in exchange for an amount. A sale deed must be registered with the Sub-Registrar Office to be legal.

  • Gift Deed

    A gift deed is a document through which the property owner (donor) transfers the ownership right of the property to another person (donee) out of love and affection. The donee need not pay any amount to get the ownership right. However, this deed must be registered with the Sub-Registrar Office to be valid.

  • Mortgage Deed

    A mortgage deed comes into the picture when a person takes a loan and keeps the property as security with the lender. Then, in case the borrower of the loan defaults in repayment, the lender recovers the money from the property kept as an assurance. Typically, this deed contains the terms and conditions relating to the mortgage.

  • Warranty Deed

    During the selling procedure, the warranty deed guarantees the buyer that the seller has the right to sell the property. This gives the buyer a sense of security, and can get compensation from the seller if any issue arises. The seller of the property is called the grantor and the buyer is termed as grantee. This type of deed is rarely issued, especially in a metropolis like Mumbai.

Importance of Title Deed of Property

  • The title deed certificate becomes crucial when someone seeks to sell a property. Since the title deed acts as evidence that an individual or a party owns the property and has legal right over it to make a sale transaction, the buyer does not have to be worried about the property’s authenticity. Thus, in many cases, a buyer may request to furnish this document.
  • The buyer may also consider this document to know whether there are any liens or claims against the said property.
  • As mentioned earlier, a title deed of a property can be used to avail loans and keep the property as security to the lender.
  • This instrument can also act as a gifting means for succession planning. As an owner of the property, the individual can transfer the ownership to their loved ones as a gift without exchange of money.
  • The title deed is also crucial to contest a dispute over ownership in a court of law.


When purchasing or selling a home, the buyer and seller of the property come to an agreement based on specific terms and conditions. A document called a sales deed is then prepared for the change of ownership. As soon as the sale deed is registered, it proves that the title of ownership has been shifted. Thus, in real estate, a sales deed is a type of title deed which may sometime be used interchangeably.

To purchase a dream house, the buyer must request all the necessary documents from the seller. Moreover, the buyers must look for housing projects offered by trusted real estate companies like Piramal Realty, offering luxurious apartments with high quality and safety standards.

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim /disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein

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