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What is 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 agreement is signed between the buyer and the seller. Normally, a sale deed agreement is signed only after both the parties are satisfied and comply with the terms and conditions.

Advantages of a Sale Deed

Protects Parties

The sale deed registration protects 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 a well-defined description of the property being purchased, including the square footage and the location.

A few additional benefits of a sale deed registration are as follows:

  • As a sale deed form 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 sale process 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 Included in the Sale Deed?

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 buyer and seller
  • 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 drafting and registering the sale deed.
  • 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 payment dates, the mode of payment, etc. The price and the details of the transactions should be mentioned in figures and numbers. The sale deed format 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 Are the Things to Keep in Mind During Sale Deed Registration?

  • Title: It is important to ensure that the seller has a clear and undisputed title to the sold property. This can be verified by conducting a title search and obtaining a title certificate
  • Documentation: All necessary documentation, such as the sale agreement, power of attorney, and other relevant documents, must be in place before the sale deed registration process
  • Tax clearance: It is important to ensure that all outstanding taxes, including property tax and stamp duty, are paid and cleared before the sale deed registration process
  • Legal advice: It is recommended to seek legal advice from a qualified lawyer before getting the sale deed registration to ensure the sale deed registration process is carried out smoothly and legally
  • Valuation: It is important to get the property valued by a professional valuer before the sale deed registration to ensure that the price being paid is fair and reasonable
  • Survey: A property survey should be conducted to ensure that the sold property is accurately described and all boundaries are clearly defined
  • Registration fees: It is essential to pay the necessary sale deed registration fees to ensure that the sale deed registration process is properly done and legally valid
  • Witnesses: The sale deed should be signed in the presence of at least two witnesses who can attest to the document's authenticity.

Requirements of a Sale Deed

  • The sale deed format must specify the name and address of the buyers and the sellers
  • The complete address of the property, and a description of the property should be mentioned in the property sale deed.
  • 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 property sale deed
  • Additionally, if the advance amount is paid already, it must be mentioned in the property sale deed
  • The mode of payment must be mentioned
  • The property sale deed must stipulate the time when the title of the property registration will get transferred to the buyer. All the documents 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 Property 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's office on the date for the enrollment of the deed
  • The stamp duty and sale deed registration charges have to be paid to making the sale deed registration.

Documents Required for Drafting Sale Deed Agreement

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

What is the Process For Getting a Sale Deed?

The buyer of a property must draft a sale deed after obtaining the necessary documents from the seller. It is advisable for the buyer to seek the assistance of a legal professional or advocate to verify that the seller is the rightful owner of the property and possesses the requisite title deeds for the sale.

The legal expert will do drafting sale deed, incorporating all the essential clauses and components. Once drafting sale deed is done by either the buyer or their appointed advocate, the sale deed is then submitted to the seller. Upon the seller's approval of the contents of sale deed, the document is finalized, allowing both parties to proceed with the sale deed registration at the sub-registrar office.

sale deed registration

Note that the sale deed registration process may vary slightly depending on the laws of the state in which the property is located. It is advisable to seek the assistance of a lawyer or a professional property advisor to ensure that the sale deed process is completed smoothly and efficiently.

Points to Remember When Executing a Sale Deed

Here are some points to remember when executing a sale deed:

  • Make sure that the property is free from any encumbrances, such as mortgages or liens.
  • Get a title search done to ensure that the seller is the rightful owner of the property.
  • Get a survey done to ensure that the boundaries of the property are correct.
  • Get a valuation done to determine the fair market value of the property.
  • Negotiate the purchase price and make sure that it is fair to both parties.
  • Get the sale deed drafted by a lawyer.
  • Sign the sale deed in the presence of witnesses.
  • Register the sale deed with the relevant authorities.

Sale Deed Charges

The sale deed charges in India depend on the state in which the property is located and the value of the property. Generally, the charges are calculated as a percentage of the value of the property, with the percentage varying from state to state.

It is important to note that the charges may vary based on the location and value of the property, and it is recommended to consult with a lawyer or a property advisor for more accurate information.

To get sale deed registration, you can get in touch with Vakilsearch. Our pricing for sale deed starts at a pocket-friendly price of ₹3999 onwards.

Important Elements of the Sale Deed

The important elements of a sale deed typically include:

Property Description: The sale deed should contain an accurate description of the property being sold, including its dimensions, boundaries, location, and any fixtures or structures attached to it.

Buyer and Seller Details: The sale deed should clearly mention the names and addresses of both the buyer and seller.

Purchase Price: The sale deed should state the agreed-upon purchase price for the property and the payment terms.

Mode of Payment: The sale deed should specify the mode of payment, such as cash, cheque, demand draft, or bank transfer.

Possession Date: The sale deed should mention the date on which the buyer will take possession of the property.

Rights and Obligations: The sale deed should outline the rights and obligations of both the buyer and seller, such as maintenance responsibilities and any usage restrictions.

Indemnification: The sale deed should include an indemnification clause that protects both parties from any potential losses or damages arising from the transaction.

Signatures and Witnesses: The sale deed must be signed by both the buyer and seller in the presence of witnesses, who must also sign the document.

Sale Deed Sample Format

Format
This Deed of Sale is made and entered into this [Date] day of [Month], [Year], by and between:

1. [Name of Seller], S/o/D/o [Name of Father/Mother], aged [Age] years, residing at [Address], hereinafter called the 'Seller' (which expression shall mean and include his/her legal heirs, successors, successors-in-interest, executors, administrators, legal representatives and assigns),

AND

2. [Name of Buyer], S/o/D/o [Name of Father/Mother], aged [Age] years, residing at [Address], hereinafter called the 'Purchaser' (which expression shall mean and include his/her legal heirs, successors, successors-in-interest, executors, administrators, legal representatives and assigns).

WHEREAS
, the Seller is the absolute owner and possessed of the property described in the Schedule hereunder and hereinafter referred to as the 'Schedule Property' free from all encumbrances and disputes whatsoever.

ANDWHEREAS, the Seller has agreed to sell and convey the Schedule Property to the Purchaser for a total consideration of [Sale Amount] in [Mode of Payment, e.g., cash/cheque/bank draft] and the Purchaser has agreed to purchase the same for the aforesaid consideration and to that effect the parties entered into an agreement on the [Date of Agreement].

NOW THIS DEED WITNESSETH:

1. Consideration: In consideration of the sum of [Sale Amount] (Rupees [Sale Amount in Words] only) paid by the Purchaser to the Seller, the receipt of which is hereby acknowledged by the Seller, the Seller hereby sells, conveys, and transfers unto and to the use of the Purchaser, the Schedule Property absolutely and forever.

2. Description of Property: [Detailed description of the property, including survey number, area, boundaries, etc.]

3. Covenants by the Seller:
  • That the Seller has good and marketable title to the Schedule Property and is entitled to convey the same to the Purchaser.
  • That the Schedule Property is free from all encumbrances and disputes.
  • That the Purchaser shall have quiet and peaceful possession of the Schedule Property without any interference from the Seller or any other person claiming through or under him/her.

  • 4. Possession of Property: The Seller shall deliver possession of the Schedule Property to the Purchaser on [Date of Possession].

    5. Registration: The Purchaser shall get the Deed registered at the Sub-Registrar's Office within [Number] days from the date of execution of this Deed.

    6. Witnesses: This Deed is signed and delivered in the presence of two witnesses whose names and addresses are mentioned below:
  • Witness 1: [Name], [Address]
  • Witness 2: [Name], [Address]

  • [Signatures of Seller and Purchaser]

    [Signatures of Witnesses]

    Schedule

    [Detailed description of the property, including survey number, area, boundaries, etc.]

    Difference Between Sale Deed and Sale Agreement

    Sale DeedSale Agreement
    An actual transfer of property ownership takes place through a sale document.The promise of a future transfer of property ownership is contained in a selling agreement.
    An immediate and complete sale of the property is referred to by a sale deed.A sale agreement suggests that the property will eventually be sold.
    According to the sale document, the buyer is in charge of the property's risk.The risk connected to the property must be borne by the seller up until the sale of the property.
    A sale deed is an accomplished contract.A selling agreement is an executing contract, meaning it will eventually be carried out.
    A lawsuit is filed after a breach of contract to recover money in the form of damages, an injunction, or execution.Only a lawsuit for damages can be brought about by a breach of the sale agreement.
    The buyer is liable for paying stamp duty and registering the sale deed.According to state regulations, the selling agreement must be registered. In some states, registering must be done in order to vote, but not in others.
    The buyer receives all of the property's rights and claims as outlined in the sale deed.The buyer is only granted the right to acquire a property in the future under the terms of the sale agreement.
    The sale document contains information about the individuals involved, the property, and payment information, among other things.Just the terms and conditions under which the property will be sold are included in the sale of the agreement.

    Execution of a Sale Deed

    The Indian Registration Act of 1908 mandates that any agreement for the transfer of a real estate interest with a value greater than ₹100 be registered. The selling deed of a property, such as a flat, building, or plot of land, must be registered in order to be enforceable. Two parties, the buyer and the seller, sign the sale deed. The individual selling or transferring ownership of a property is known as the seller. The buyer is the individual who exchanges money for the right to acquire a piece of property.

    The local sub registrar office must receive the sale deed. From the legal point of view an unregistered sale deed is worthless. The non-judicial stamp paper used for the sale deed was purchased for the sum stipulated by the state's stamp duty legislation. The amount of stamp duty applied to real estate purchases varies by state. The cost of stamp duty is 4% to 6% of the property's selling price. The sale deed is signed by the buyer and seller in front of at least two witnesses and is registered by a sub-registrar, the sale or purchase of a property is legally binding.

    Getting a Certified Copy of Sale Deed

    Obtaining a certified copy of a sale deed in India involves specific steps and procedures that can vary slightly depending on the state and location. Here's a general guide to help you through the process:

    1. Identify the Location:

    Determine where the property transaction was registered. This information should be available on the original sale deed.

    2. Contact the Sub-Registrar:

    Visit the relevant sub-registrar's office with the following information:

    • Property details (location, survey number)
    • Date of registration
    • Names of seller and buyer (as mentioned in the original deed)

    3. Application and Fees:

    • Fill out the application form provided by the sub-registrar's office.
    • Pay the necessary fees, which usually include:
    • Application fee (varies by state)
    • Inspection fee
    • Copying fee (based on document length)
    • User charge (under the ARTPS Act)

    4. Documentation:

    Submit copies of relevant documents, such as:

    • Your ID proof
    • Proof of address
    • Affidavit stating the reason for needing the copy (optional, may be required in some cases)

    5. Verification and Processing:

    The sub-registrar will verify the information and process your application. This may take a few days to a week depending on the workload.

    6. Collection of Certified Copy:

    Once processed, you can collect the certified copy of the sale deed from the sub-registrar's office.

    What is the Cancellation of a Sale Deed?

    The cancellation of a sale deed is the process of undoing the sale of a property. This can be done by both the buyer and the seller, but the specific requirements will vary depending on the laws of the jurisdiction

    There are a few reasons why someone might want to cancel a sale deed. For example, the buyer might have found out that the property has major defects that were not disclosed by the seller. Or, the seller might have failed to make a promised payment to the buyer.

    To cancel a sale deed, the parties involved will need to enter into a cancellation agreement. This agreement should be in writing and should be signed by both parties. The cancellation agreement should specify the terms of the cancellation, such as the return of the purchase price and the repayment of any outstanding debts.

    The cancellation agreement should also be registered with the relevant authorities. This will ensure that the cancellation is enforceable against third parties.

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    Sale Deed FAQs

    A sale deed acts as the main legal document for confirming sale and transfer of ownership of property in support of the buyer, from the seller.
    The owner of the property will prepare the sale deed. They have the right to prepare and alter the sale deed. So, it is one of the most important documents in buying or selling a home.
    The buyer is the one who pays the stamp duty and the registration charges. The seller needs to clear all the payments that are related to the property. The property might be property tax, water, and electricity charges before the sale deed is signed.
    A sale deed is a legal document that confirms the transfer of ownership from the seller to the buyer. A registry, on the other hand, is a government record of ownership of the property.
    The sale deed is valid from the date of execution, and it remains valid for the entire lifetime of the property.
    Yes, a deed of sale is considered proof of ownership of the property, provided it is duly registered.
    A deed of sale does not need to be notarised in India. However, it must be registered with the local Sub-Registrar's office to be legally valid.
    There are two types of sale deeds: Absolute Sale Deed and Conditional Sale Deed.
    The cost of processing a deed of sale varies depending on the state and location of the property. It generally includes stamp duty, registration fee, and legal fees.
    No, once a sale deed is executed and registered, it cannot be canceled unilaterally by the seller. It can only be canceled by mutual agreement between the buyer and the seller, and the process involves the execution of a deed of cancellation.
    An unregistered sale deed is not considered a valid proof of ownership. However, it can be used as evidence of a contract between the buyer and the seller.
    A sale deed is a legal document that confirms the transfer of ownership from the seller to the buyer. A registry, on the other hand, is a government record of ownership of the property.
    The deed of sale is a legal document that is executed between the buyer and the seller. It is typically prepared by a lawyer or a property registration agent.
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