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Sale Deed

Sale Deed is an official legal document inclusive of the terms and conditions regarding the sale of a property, and it describes the transfer of right, title, and ownership of an immovable property from a seller to a purchaser. A sale deed can be executed only after entering into an Agreement to Sale, under the Registration of Property Act, 1908. An agreement to sale witnesses the mutual interest of both parties in sale.

The amount to be paid under sale transaction at the time of sale deed’s registration is known as sale consideration. The deferred payment of sale consideration does not attract passing of the title to the Sale Deed. A sale deed must be registered in the local Sub-Registrar office. An unregistered sale deed holds no legal value.   

  1. Elements of a Sale Deed
    • A sale deed must specify the name and address of the executing parties, i.e., buyer and the seller.
    • The deed must also include complete address along with the description and type of the property such as bungalow, Kothi, residential flat, shop, office, etc.
    • It should also inclusive of sale price agreed between both parties, i.e., the amount under which the execution of the sale is performed. The mode of payment can be cheque, cash, demand draft, and online transfer. Also, if any advance money has been paid, then it should also be specified in the deed.  
    • All the documents related to the property are required to be handed over to the buyer. The deed must specify the time when the title of the property will get transferred to the buyer.
    • Also, make sure that the title of the property is free from any charges or encumbrances.
    • A sale deed is required to be registered in the Sub-Registrar office. Both the parties, i.e., buyer and the seller must be present at the office for registration of deed along with their witnesses. The stamp duty and registration fee have to be paid for completing the registration process.

Drafting a Sale Deed requires a thorough knowledge of all the legal process and contents, which later can be incorporated in the Agreement to Sale for eliminating the chances of any discrepancies at the time of registration under the Registration of Property Act,1908.

  • Stamp duty and transfer duty @ 6% if the vendor is a woman and @ 8% if the vendor is a man.
  • Registration fee of Rs. 101/- per document.
  • Both the parties, i.e., the vendor and the vendee, required to be present along with their identification documents (Passport, Epic Card, Ration Card, Driving License etc.) at the time of presentation.
  • Two witnesses along with identification documents need to be present during presentation of documents.
  • Services of advocate or any intermediary is not at all required for registration of any of the documents.