The Importance of a Sale Deed

Last Updated at: Oct 05, 2020
eviction notice
The State Government of Andhra Pradesh recently launched the Layout Regularisation Scheme (LRS) to regularise unauthorised layouts in the state. Individual plot owners in unapproved layouts having registered sale deeds prior to August 31, 2019, can apply under the scheme. 


The Tamil Nadu Govt. is introducing the upgraded version of STAR 3.0 (Simplified and Transparent Administration of Registration) in 2020 to eliminate ambiguity in property ownership. The Govt. has decided to include photographs of landowners and a copy of the registered sale deed along with online copies of encumbrance certificates.


In a housing deal, the most important document is the sale deed. It speaks to the validity of the transaction and addresses perhaps any concern one could have about the matter. It must be registered and is kept by both the seller and buyer. It is usually signed only after every detail is agreed to.

What Does it Include?
A sale deed will contain every detail related to the deal, beginning with the names and addresses of parties involved, the size of the flat, its location and access points. In the case of an individual house, it would also describe how the house was constructed.

Get Your Property Registered

The main purpose of the deed is to certify that the property is free from encumbrance. This means that the seller has complete ownership and there is no lien on the flat. In case the home has been mortgaged, it should be settled before the deed is signed. Some buyers, particularly in large transactions, hire an agent to check the registrar’s office.

It would also, of course, include the sale price, the token amount given, the remaining payment to be given, and all other details of the transaction. All other documents handed over to the buyer would also be mentioned in the deed.

How to Make a Sale Deed?
The deed is prepared in non-judicial stamp paper. Find out the value of stamp paper needed for the deed in your state. It will differ with each state, as all states have amended the Stamp Act for their purposes. The deed is to be signed in the presence of two witnesses at the sub-registrar’s office. Do ensure that all taxes have been paid on the property before executing the deed or you would end up paying a fine.

The buyer is supposed to pay the stamp duty and registration charges, but it is usually split with the seller. Once registered, the original documents related to the sale should be produced within four months.