What is the difference between a deed and a contract of sale?

A deed and a contract of sale are both important documents in residential real estate law in California. The primary difference between the two is the transfer of ownership. A deed is a legal document that is used to transfer the ownership of a property from one person to another. The deed also states the rights, restrictions, and obligations of the new owner. The deed is usually recorded with the local county’s recorder’s office. A contract of sale is an agreement between the buyer and seller. It outlines the details of the sale, including the price, closing date, and any other conditions. The contract of sale is not a transfer of ownership as it does not convey any rights in the property. Instead, it states the obligations of the parties and serves as a promise to complete the sale in accordance with the terms of the agreement. After both parties sign the contract of sale, the buyer is responsible for obtaining a deed from the seller in order to transfer ownership of the property.

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What is the difference between a deed and a contract of sale?

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