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Sale Deed

The agreement between you and the other party should cover comprehensively the terms on which the sale will take place and the date on which the sale will be completed.

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How does the Sale Deed work?

A Sale Deed precisely defines the priorities of both the parties thereby minimising the uncertainty
and providing legal protection.

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What is a Sale Deed?

A sale deed is a legal document that showcases the transfer of title, rights, and ownership of a property from a seller to a buyer.

It is the most important document that legally reports the proof for the buyer and seller. It is an essential document for both the buyer or the transferee and the seller or the transferor. The purchase or sale of the property is not legally complete until a sale deed is signed between the buyer and the seller. Normally, a sale deed is signed only after both the parties are satisfied and comply with the terms and conditions.

Advantages of a Sale Deed

Protects Parties

The deed protect the rights of both the buyer and the seller. A specific, well-drafted deed will avoid ambiguity and minimise legal risks.

Defines The Area

For the buyer, a key advantage is having on paper a well-defined description of the property that is being purchased, including the square footage and the location.

There are few additional benefits of a sale deed which is as follows:

  • As a sale deed concludes the sale into a legal document, it is enforceable by the law.
  • A sale deed reduces troubles as all money due can be specified in the document. This makes the process of sale more stable and comfortable.
  • Additionally, it assures that your property is not taken for granted given the existence of a registered and stamped legal document.

What is the Format of Sale Deed Form

In general, a sale deed should include the below-mentioned details-

  • Descriptions of the parties involved- the full name, complete address, contact details, age & occupation for each of the buyers and sellers.
  • Description of the property being transferred- id number, correct address, dimensions of the property, construction details of the building, if there is any.
  • Indemnity & encumbrance clause- This includes a declaration from the seller that the property being transferred is free from every encumbrance, litigation, and charge. Also, the seller indemnifies the buyer from any pending charges in this regard.
  • The seller should settle a pending loan taken with the concerned property as a mortgage, before proceeding with the sale. The buyer has every right to examine the related documents before registration.
  • The sale consideration- It’s the price at which the transfer deal is closed. This section should also mention the advance amount paid if there is any. The parties should explicitly agree on the dates of payment, the mode of payment, etc. The price and the details of the transactions made should be mentioned in both figures and numbers. The sale deed should also mention the receipts of the sale transaction.
  • Delivery & possession of the property- the deed should specifically mention the date of handover to and possession by the buyer.

What is the process for getting a sale deed?

  • The lawyers should be in contact to understand the requirement in detail.
  • The basic information would be required from your end to start the process.
  • Once all the information is provided and the payment is received, the lawyers will start working on your document.
  • Additionally, you will get the first draft of your legal document within a few working days.
  • You can evaluate the document and in case of any modifications, you can intimate for the corrections.

Requirements of a Sale Deed

  • The sale deed must specify the name and address of the buyers and the sellers.
  • There must be a complete address of the property and a description of the property should be mentioned.
  • The sale price consideration accepted between the buyer and the seller must be specified in the sale deed. That is, the amount which the buyer has to pay on the execution of sale deed must be mentioned in the sale deed.
  • Additionally, if the advance amount is paid already, it must be mentioned in the sale deed.
  • The mode of payment must be mentioned.
  • The sale deed must stipulate the time when the title of the property will get transferred to the buyer. All the documents that are related to the property must also be handed over to the buyer.
  • Ensure that the title of the property is available from any deviation.
  • A sale deed is not legally binding unless it is enrolled in the sub-registrar office. Both the buyer and the seller including the witness must be there at the registrar office on the date for the enrollment of the deed.
  • The stamp duty and registration charges have to be paid for making the registration done.

Registration of an original sale deed

Both the seller and the purchaser have to keep all the important documents in the sub-registrar office to confirm the sale deed and close the deal. The registration of a sale deed includes:

  • The value of the property has to be determined based on the circle rate in that region.
  • The circle rates of the area and the actual price paid for the property are related. While assessing the stamp duty the higher of the two values, the circle rate and the actual price paid have to be taken into consideration.
  • Additionally, a non-judicial stamp paper of the value so calculated has to be purchased consequently.
  • Consequently, the deed has to be provided and typed in stamp papers.
  • The final step needed in making the sale deed registered is to compare the sub-registrar office to get the sale deed registered. The parties must be followed by two witnesses.

What is the cancellation of a sale deed?

The cancellation of a deed can be done bilaterally by the seller and the purchaser if there is an agreement to this effect. The cancellation process is done only if one party demands for cancellation and the other refuses to accept it.

Documents Required for a Sale Deed
Documents Required for original sale deed
Documents Required for property sale deed
Documents Required for sale deed of land

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