MODULE 9

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.

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 should a sale deed include?

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 a 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.

Things to keep in mind before executing a sale deed

Before the execution of the sale deed, the buyer should ascertain that the title of the property is
free of all encumbrances. Verification of the encumbrance status from the registrar's office is a
must for the buyer purchasing the property. After ensuring that the property is free from
encumbrances, the purchaser should also corroborate that all the statutory payments such as
water/electricity bill, cess, property tax and maintenance charges have been cleared and no
further dues or permission is pending for the transfer of property through a sale deed.

Buyers of a property must take note that the sale deed is one of the most important documents
which establishes the proof of ownership post the purchase is made. Hence, one must make it a
point to acquire this document.

IMPORTANT INGREDIENTS OF A SALE DEED

• Name of the deed: It is the parties who have to decide that which deed has to be prepared e.g.
DEED OF SALE or DEED OF MORTGAGE or DEED OF LEASE etc. and based on which
there will be transfer of ownership of immovable property. Since this Sale deed, parties may use
DEED OF SALE (OR) SALE DEED.

• Parties to sale deed: An absolute sale deed must contain the names, and respective addresses
of parties to the transaction and both the parties i.e. seller and buyer must be competent to enter
into a contract so that it will not affect the validity of the valid sale. It is very much important
that the sale deed is duly signed and executed by both the parties with their bona-fide intention.
A valid sale deed must start with clear description of the parties.

• Description of the property sold: A valid sale deed must contain full description of the
property which is the subject matter of sale. It must include identification number, total plot area,
construction details as well as its location with its surrounding areas. A schedule of the property
must be included in the sale deed which will define the exact location where the property is
actually situated.

• Sale consideration clause: A sale deed must include the clause stating the sale
consideration/amount as agreed between the seller and the buyer which has to be paid by the
buyer to the seller on the execution of sale deed. A sale amount should be clearly stated in sale
deed as agreed in the agreement to sell so that there should not be any onus on the parties to the
transaction.
• Advance payment, if any: If there is any transaction of token amount paid by the buyer to the
seller then it has to be clearly mentioned in the sale deed, and how much is the remaining
balance to be paid on the execution of the sale deed.

• Mode of payment: It is always the buyer who has to decide that how he is going to pay the
sale consideration amount whether by Cash /Cheque/ Demand Draft and the same has to be
agreed by the seller.

• Passing of the title: A sale deed should contain the clause when the original title of the
property to be passed to the vendee. A time limit should be given to the seller for the transfer of
the title. Once the title of the immovable property is transferred, all the rights will pass to the
vendee.

• Delivery of the possession: The possession of the immovable property will be transferred to
the vendee by the vendor once the registration process is completed. A clause in the sale deed
must state when there will be actual delivery of the possession.

• Indemnity provision if any: A seller must clear all the statutory charges i.e. property tax,
electricity charges, water bills, cess, society charges, maintenance charges and all other charges
relating to the property before the execution of the sale deed. In case there is any encumbrance
on the property, the seller needs to repay the loan amount and get the property papers cleared of
the encumbrance. It is the duty of the buyer to verify the encumbrance status.

• Execution: Once the Sale Deed is prepared all the parties to the deed shall execute it by
affixing their thumb impression or full signature. Each page should be signed by the seller and
buyer. Any erasure, alteration, addition or deletion is to be authenticated by full signature of the
parties. Execution of the sale deed requires to be witnessed by two witnesses. The witnesses shall
give their full particulars and addresses.

• Registration: According to Section 17 of "The Registration Act, 1908", the registration of a

tangible immovable property is compulsory if the value of the respective property exceeds
rupees 100/- and it is the registration of the property which makes the sale valid. For getting the
registration done both the parties must be present in person or through their duly authorised
agent(s) before the jurisdictional sub-registrar office with the original documents within four
months from the date of execution. A stamp duty has to be paid by the vendee to the subregistrar
for getting the registration done. A certified copy of the registration document to be obtained for
the future reference.

• Testatum: Once all the terms and conditions have been settled between both the parties, a sale
deed is prepared. The executed sale deed should be witnessed by at least two witnesses one from
seller side and one from buyer side, giving their full names, addresses and signatures.

• Original documents: Once the property gets registered under the registration act all the
original documents of the sold property to be hand over by the seller to the vendee. All the
statutory rights along with ownership, possession, title, interest will get vested in favour of the
vendee.

• Default clause: An agreement for sale of immovable property should include the clause stating
if there is any default by the vendor or the vendee then the party who rescinds the contract need
to pay damages to the other party for the breach of contract so that it will not affect to the
execution of the sale deed.
 DRAFT OF A SALE DEED

This DEED OF ABSOLUTE SALE executed at on this the day of

2015 by Smti/Shri. S/o W/o D/o residing at

hereinafter called the VENDOR of the one part which expression shall include his executors,
administrators, legal representatives, successors etc.

TO AND IN FAVOUR OF

Shri/Smti S/o W/o D/o residing at

hereinafter called the VENDEE of the Other Part which expression wherever the context so
requires shall mean and include his heirs, executors, administrators, legal representatives,
successors etc.

WHEREAS the VENDOR herein has been in exclusive possession and enjoyment of the
property more fully described in the Schedule of property hereunder with a constructed house
thereon, which was constructed by him with his self-earned funds, till date.

WHEREAS the VENDOR is the exclusive owner of the property more fully described in the
schedule hereunder and he has absolute right to dispose of the same as in the manner he wishes;

AND WHEREAS the VENDOR is in need of funds in order to meet his personal commitments
and family expenses and has decided to sell the property more fully described in the Schedule of
consideration hereunder for a sum of Rs /- (Rupees only) and the VENDEE herein has also
agreed to purchase the same for the said price and to the effect they entered into an agreement to
sell dated.

NOW THIS DEED OF SALE WITNESSETH

THAT in pursuance of the aforesaid agreement and in consideration of a sum of Rs. (Rupees
only) received by the VENDOR in cash and the receipt of the said entire consideration of Rs.
(Rupees only), the VENDOR doth hereby admit, acknowledge, acquit, release and discharge the
VENDOR from making further payment thereof and the VENDOR doth hereby sell, convey,
transfer, and assigns unto and to the use of the VENDEE, the property more fully described in
the Schedule hereunder together with the water ways, easements, advantages and appurtenances,
and all estate, rights, title and interest of the VENDOR to and upon the said property TO HAVE
AND TO HOLD the said property hereby conveyed unto the VENDEE absolutely and forever.

THE VENDOR DOTH HEREBY COVENANT WITH THE VENDEE AS FOLLOWS:

1. That the property more fully described in the Schedule hereunder shall be quietly and
peacefully entered into and held and enjoyed by the VENDEE without any interference,
interruption, or disturbance from the VENDOR or any person claiming through or under him.

2. That the VENDOR has absolute right, title and full power to sell, convey and transfer unto the
VENDEE by way of absolute sale and that the VENDOR has not done anything or knowingly
suffered anything whereby his right and power to sell and convey to the VENDEE the property
hereby conveyed.

3. That the property is not subjected to any encumbrances, mortgages, charges, lien, attachments,
claim, demand, acquisition proceedings by Government or any kind whatsoever and should
thereby and the VENDOR shall discharge the same from and out of his own funds and keep the
VENDEE indemnified.

4. That the VENDOR hereby declares with the VENDEE that the VENDOR has paid all the
taxes, rates and other outgoings due to Local bodies, revenue, urban and other authorities in
respect of the property more fully described in the Schedule hereunder up to the date of
execution of this sale deed and the VENDEE shall bear and pay the same hereafter. If any arrears
are found due to the earlier period, the same shall be discharged by the VENDOR

5. That the VENDOR has handed over the vacant possession of the property more fully
described in the Schedule hereunder to the VENDEE on and delivered the connected original
title document in respect of the schedule mentioned property hereby conveyed on the date of
execution of these presents.
6. That the VENDOR will at all times and at the cost of the VENDEE execute, register or cause
to be done, all such acts and deeds for perfecting the title to the VENDEE in the property hereby
sold and conveyed herein.

7. That all expenses of this sale deed such as stamp duty, execution and registration fee, etc, has
been paid by the Vendee.

8. That the VENDOR do hereby covenants and assures that the VENDEE is entitled to have
mutation of his name in all public records, local body and also obtain patta in the name of the
VENDEE and undertakes to execute any deed in this respect.

SCHEDULE OF PROPERTY LOCATION AND BOUNDARY OF PROPERTY IN DETAIL

WITH MATCHING DESCRIPTION OF NORTH, SOUTH, EAST AND WEST AS IN
SKETCH MAP/REVENUE RECORD…….

SCHEDULE OF CONSIDERATION

THE MARKET VALUE OF THE PROPERTY IS RS……

MODE OF PAYMENT IN DETAIL…..

IN WITNESS WHEREOF, the parties have signed and affixed their signatures thump mark on
this Sale Deed after understanding the contents 4 of the same on the day, month and year first
above written in the presence of the following witnesses:

WITNESSES: - 1. (Name, father’s name, address) VENDOR

2. (Name, father’s name, address) VENDEE