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Deed of Sale Deed of Sale

Bronze medal Reporter Adv. Sheetal Kulkarni Posted 20 Dec 2019
Deed of Sale


There are multiple documents required to prove the ownership of the property while selling and buying the property. Sale deed is one of the crucial evidence that proves the identity of the actual owner of the property along with other important details that is of significance for ensuring the deal is legal.

Know the basic of sale deed –

While buying a house, it is always better to be legally protected with the ownership of the same. Among various others, a sale deed is a crucial document that verifies the ownership of a property. 

What is a sale deed?

A sale deed is one of the valuable documents in sale or purchase of a property. The deed is equally important for both the buyer (transferee) and seller (transferor). The sale deed is legally complete only after it is signed by both buyer and seller. Both the parties have to comply with the terms and conditions mentioned in the agreement. The deed contains the names, age and addresses of the parties involved in the transaction.

The deed contains the following information: 

1. Type of deed

Whether it is a sale deed, lease deed, mortgage deed- the document would say 'Deed of Sale' if it is a sale deed.

2. Details of the property sold: Full des c r i p tion of the property, including its identification number, construction details, total plot area, location and other related details, have to be mentioned in the sale deed.

3. Sale agreement: Both the parties must mutually settle the terms and conditions of the agreement so that it does not affect either of the parties.

4. Clause for sale consideration: A clause stating the sale consideration or amount that is agreed between the buyer and the seller has to be included in the sale deed. The amount agreed between the parties has to be paid by the seller to the buyer during the execution of the sale deed.

5. Payment: Both the parties should mutually agree on the mode of payment: cash/cheque/demand draft, etc. If a token amount or advance payment has been made by the buyer to the seller, it has to be mentioned in the sale deed, including the remaining amount to be paid.

6. Passing of the title: A sale deed must have a clause about the transfer of original title of the property to the buyer. The seller should be given adequate time to transfer the title and once it is done, all rights should be passed to the buyer.

7. Possession or delivery of the property: A sale deed in a clause must include the date of delivery of the property sold to the buyer.

8. Indemnity provision: A clause must be present in the sale deed, stating that the seller must clear all statutory charges such as electricity bill, water bill, property tax, society charges, maintenance charges, etc. If he has taken a home loan, he should repay and get the papers back from the bank. It is the responsibility of the buyer to check any dues while buying a property.

9. Default clause: A sale agreement should include a clause about default on the part of any of the parties. In case of a default, the defaulting party will have to pay a penalty to the non-offending party. A sale deed is considered to be complete only after it is ratified by two witnesses from both parties. It should also contain the names, addresses and signatures of both witnesses.

Execution of the sale deed : Execution of sale deed is technically the concluding part of property-purchase process. The signing of deed signifies that the process of sale has been completed. The seller transfers the right of ownership to the buyer through sale deed. As soon as the document is signed, the buyer becomes the complete owner of the property. Usually, a sale deed is executed only when both sellers and buyers are fully satisfied and are ready to comply with the terms and conditions as mentioned in sale agreement.

After a buyer and a seller reach an agreement, they first execute an agreement to sell, a document that sets the terms and conditions based on which the future transaction will take place. The creation of the agreement to sell means terms have been placed for the transaction while the creation of sale deed means the purchase has completed. As mentioned in the agreement to sell, the two parties have to conclude the sale within a set period after executing the agreement to sell.

Registration of the deed

The sale deed is drafted on a non-judicial stamp paper of value as set by the state government in which the property transaction is taking place. Every state has a predetermined value of stamp paper that is used for drafting immovable property.

A sale deed is registered in accordance with the Registration Act, 1908. Both the parties have to be present in person along with two witnesses with all the relevant documents in the sub-registrar's office to sign the sale deed and close the deal.

The registered sale deed document is a valid proof of ownership of the immovable property with all relevant information about the buyer.

Proof of registration

The certified copy of the registered deed with the name of the buyer can be obtained from the registrar's office.

Also note the following:

  • The executed duly stamped documents have to be produced before Sub Registrar for registration purpose within four months from the date of execution.
  • It is the buyer who pays the stamp duty and the registration charges.
  • The seller needs to clear all payments related to the property such as property tax, cess, water and electricity charges before the sale deed is signed.

Adv. Sheetal Kulkarni


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