The Difference Between a Purchase and Sale Agreement and a Deed
Understanding the significance of the instruments involved in a negotiation is extremely important for guiding the parties.
A private agreement or a notarized deed? Understand the difference before closing the deal
Purchase and Sale Agreement (the "standard form contract")
A private agreement between the parties. It is simpler to draw up, but lacks the safeguards of a deed—it does not require certificates from the seller or regarding the property.
Notarized document
Done at a notary public’s office, requiring various certificates (outstanding debts, pending lawsuits, property status). It is the mandatory procedure for most real estate transactions—and it is this process that allows the transfer to be recorded in the property registry.
When a private contract is sufficient
In certain specific cases provided for by law—properties valued at up to 30 minimum wages, or financing secured by a fiduciary sale.
Recommendation
Even when it's not required, having a lawyer review a private contract can save you a lot of trouble later on.
Not sure which document your business needs?
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