AMITY LAW SCHOOL

PROJECT ON
SALE DEED
Drafting of Sale Deed

Submitted by:
Ayush Jain
A11911115174
Semester 8
B.A. LL.B (H)
Section E
INTRODUCTION

The word ‘SALE’ defined under Section 54 of “The Transfer of Property Act,
1882” is a transfer of ownership in exchange of price paid or promised or
part-paid and part-promised. It means absolute transfer of tangible
immovable property by the vendor to the purchaser by entering into a
contract for sale wherein both the parties will settle the terms and conditions
of transfer. Such transfer can be done through the registered document and
thus delivery of the property can be by handing over the actual possession of
the immovable property by the vendor to the purchaser or the person legally
authorised by him. In a sale of tangible immovable property an Encumbrance
Certificate will be passed to the purchaser by the vendor whereby all the
statutory rights i.e. easementry rights, beneficiary rights, actionable claims
as well as vested interest in the immovable property will be transferred in-
toto.

The word ‘SALE DEED’ otherwise called as ‘Conveyance Deed’ is a legal

written document executed by the vendor and the purchaser which
evidences the sale and transfer of ownership of the tangible immovable
property. A sale deed is governed by ‘The Registration Act, 1908’ and is an
important document for both the buyer or the transferee and the seller or
the transferor. A sale deed is executed after the execution of the agreement
to sell, and after compliance of various terms and conditions between the
seller and the purchaser mutually. A sale deed is the main document which
gives details of how the seller got the property, at what consideration the
seller is selling the property and assurance to the purchaser that the
property is free from any encumbrances, liabilities or indemnity clauses. A
sale deed acts as a essential document for the further sale of the property by
the purchaser as it establishes the proof of ownership of property.
Requirements of Sale Deed:

A sale deed is one of the most valuable legal documents in a purchase or

sale of a property. A sale deed is drafted by legal draftsman on a non-judicial
stamp paper of the requisite value as prescribed by stamp act of the
particular state concerned. A draftsman must include certain clauses while
preparing the construction of the sale deed which are as follows:

● Name of the deed: It is the parties who have to decide that which deed
has to be prepared e.g. THIS DEED OF SALE or THIS DEED OF
MORTGAGE or THIS DEED OF LEASE etc. and based on which there will
be transfer of ownership of immovable property.
● Parties to sale deed: An absolute sale deed must contain the names,
age 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.
● Agreement for sale: An agreement for sale is the main requirement of
the drafting of the valid sale deed and both the parties must mutually
settle the terms and conditions of the agreement so that it will not
affect the rights of the parties. A sale deed always precedes agreement
to sell.
● 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 purchaser. 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
purchaser.
● Delivery of the possession: The possession of the immovable property
will be transferred to the purchaser 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 from the office
of the registrar.
● 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 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 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 purchaser to the sub-registrar 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 purchaser. All the statutory rights along
with ownership, possession, title, interest will get vested in favour of
the purchaser.
● Default clause: An agreement for sale of immovable property should
include the clause stating if there is any default by the vendor or the
purchaser then the party who rescinded 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.

How Sale Deed Is Executed?

Execution of the sale deed is technically the concluding part of

property-purchase process. 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.

Calculate stamp duty, buy non-judicial stamp paper

All the details pertaining to the transaction would be typed on non-judicial

stamp papers — stamp papers that are used for execution of deeds are

known as non-judicial stamp papers while the ones used to pay a fee to the

court are known as judicial stamp papers.

The value of these stamp papers would be the money you have to pay the

authority as stamp duty, the fee authorities charge to register a deal in

government records. For example, stamp duty charge in the national capital
is six per cent for men and four per cent for women. A man purchasing a flat

for Rs 10 lakh will have to buy stamp papers worth Rs 60,000 in Delhi.

The buyer can buy e-stamp of the correct value after creating an ID on the

official website of Stock Holding Corporation of India Limited (SHCIL). Using

the same site, one can also get the e-stamps home delivered after paying an

additional fee. Alternatively, you could visit SHCIL Authorised Collection

Centers near you to collect e-stamps purchased online.

Note here that the e-Stamping facility is currently operational in Gujarat,

Karnataka, Delhi, Assam, Tamil Nadu, Rajasthan, Himachal Pradesh,

Uttarakhand, Dadra & Nagar Haveli, Daman & Diu, Puducherry, Uttar Pradesh,

Chhattisgarh, Jharkhand, Jammu & Kashmir, Punjab, Chandigarh, Odisha and

Andhra Pradesh. In other states, one has to buy physical papers them from

authorised centres.

After the purchase of the papers, every single detail about the transaction

and the manner is being carried out would be typed out of the paper. These

details would include:

● Names of buyer, seller

● PAN numbers of buyer, seller

● Photographs of buyer, seller

● Full detail of the property

● Deal value and all other financial details, including TDS payment (if

applicable)

Receipt of registration charge payment (One percent of the deal value

plus Rs 100 pasting charges have to be paid as registration charge)

 ● Stamp duty amount

● Name of the person paying the stamp duty (as a standard practice, the

buyer pays the stamp duty)

● Names and address of two witnesses

Book an appointment for registration

Now, visit online appointment system site for seeking an appointment with

Sub-Registrar. You could also visit the reception desk at the Sub-Registrar’s

Office to book an appointment.

Both the parties will have to reach the Sub-Registrar’s Office on the

appointed date and time, along with two witnesses. Apart from all

property-related documents that include TDS and property registration

payment receipt, the buyer, seller and witnesses must carry their original ID

proofs.

After online booking of the appointment, an appointment ID is generated,

which is sent to your registered mobile number through SMS. Also, carry

with you a copy of the document confirming the online appointment with

you.

Step-by-step process
1. After reaching the branch, show this appointment ID, following which a

token and a swipe card would be issued to you. Typically, only the buyer, the

seller and the witnesses are allowed inside the facilitation centre.

2. When you turn arrives, approach the facilitation counter where all your

documents would be scrutinised by the official before you are sent to the

sub-registrar.

3. At your turn, you could approach the sub-registrar, who would again

check all the documents. Before that, officials would help the buyer, seller

and witnesses mark their finger and handprints on the documents as specific

places. The buyer and the seller will have to sign and leave thumb

impressions on all pages.

4. After checking all the documents, the sub-registrar would sign them. In

case or any discrepancy, he may also reject the application.

5. Following this, everyone will proceed to the biometric division for

fingerprinting and photographs.

6. After the completion of the process, you would be issued a receipt.

7. You can collect your registered sale deed within 15 days after the

registration takes place.

Easement Deed

An easement deed allows a party that is not the owner to use a portion of
the land. It is a written agreement between two parties that spells out what
part of the property is available for access and how it may be used.

Since you are granting an easement to your land, you can set any terms and
conditions you like. The land may not be used any other way and any
property not included in the easement is not available to the other party.

Also, the party granted the easement may not pass that right to use your
property to a third party depending on the type of easement deed regulating
that portion of the property.

Different types of easement deeds are defined by how the easement is

created and regulated.

Types of Easement Deeds

There are up to five types of easement deeds depending on how they are
defined by the deed and state law.

● Easement in Gross - you allow others to use part of your property

according to your terms and conditions. No other part of your property
may be used, and the easement deed cannot be passed to another
party.
● Appurtenant Easement - you attach the easement rights to the
property such that when the deed owner sells his property, the
easement deed and rights to the apportioned property are sold with it.
In other words, the easement rights become part of the deed owners
property. It's important to specify exactly how the easement may be
used so the deed owner cannot use it for something that you don’t
want.
● Affirmative and Negative Easement - An affirmative easement
allows the deed owner to use the easement for anything he or she
wants. A negative easement contains restriction clauses that decree
the exact use that may be made of the property.
● Express Grant and Easement by Implication - An express grant
allows another party the use of your land. Alternatively, an easement
by implication is a situation in which you sell your property but retain
the right to use it. An example is retaining the right to use a cable
running through the property even though you no longer own the
land.
● Equity and Prescriptive Easement - Both equity and prescriptive
easements are “fairness” easements meant to provide fair access to
 another's property when no other exists. Equity of fairness easements,
also called easements of necessity is supplied to a property with no
value without access. You grant equity of fairness to allow access to
the property across land you own. A prescriptive easement allows the
regular use of your property without your express permission, which
typically occurs when your property was in use continuously without
your objection.

Whenever purchasing property, always research the deed for easements and
determine the type before buying the land. Prescriptive easements, in
particular, can result in unwelcome surprises for a new owner.

The Purpose of Easement Deeds

As with most legal documents, the primary purpose of an easement deed is
to put an agreement between a landowner and a second party about how a
portion of land may be used. Before creating an easement deed or when
considering a property that includes easements, consult a real estate
attorney or another expert to help you draft or understand such deeds.

Besides allowing access to property that cannot otherwise be conveniently

reached, a deeded easement serves other purposes, including utility,
drainage, driveway, and lake access. In each case, there is a party desiring
the right to use another’s property in a limited way.

The Benefits of Easement Deeds

Depending on state law, easement deeds give you the right to allow or
restrict the use of any portion of your land. If you are granting access, you
can restrict that access to specific purposes.

● You may agree to a deed of easement for your neighbor to use part of
your land as a driveway to his own property.
● You can restrict land use for conservation purposes and prevent
commercial development.
● Historical easements can prevent an owner from altering the property
or changing the design of any buildings.

In all cases, the landowner retains some control in areas where trespass,
even inadvertent, may occur as another party attempts to reach property
beyond the landowner’s or has need of additional space for parking or
planting.
How Easement Deeds Impact Property
The impact of an easement deed on a parcel of land depends on the deeded
use and potential future changes. If you agree to an easement for another
landowner to access property on foot but neglect to place restrictions, you
may be required to allow that landowner to drive across your property along
the easement. If you decide to build an in-ground swimming pool, the
discovery of an easement deed can derail those plans.

The last sentence brings up a potential issue. Not all easements are
recorded. If they have been recorded, they can be lost after many years or
changes of land ownership. If you purchase property with an eye towards
development, the discovery of a lot or unrecorded easement deed, which is
still a legal document, can cause problems.

Always ask for a current owner’s survey, which should reveal any unrecorded
easements. If one is not available, it is worth it to order and pay for a new
survey. Review all easement deeds to determine what type of easement is
granted and whether it is still in force.

If the original party to the deed has died or sold the property, the easement
may no longer apply. Alternatively, the easement deed may remain in force if
the agreement was made for a specific number of years or is granted to an
individual and the individual’s heirs and assigns.

Easement deeds provide a valuable tool to grant or restrict land use by a

non-owner. They are legal contracts enforceable by law. There are different
types of easement deeds available, depending on the kind of access or
restriction, or the amount of time the easement remains in place before it is
extinguished.
Sale Deed Format

THIS DEED OF SALE was made and executed at on day

of month, years by: Sri.
aged about years, S/o. residing
at hereinafter called the SELLER.

In favour of Sri. aged about years,

S/o. residing
at hereinafter called the PURCHASER. The
term SELLER and PURCHASER, unless repugnant to the context, shall mean
and include their respective heirs, successors, executors, administrators,
trustees, legal representatives and assigns WITNESSTH: WHEREAS the SELLER
herein is the sole and absolute owner of immovable property being Flat /
Apartment No. on the Floor of the building known as
“ ”situated at and bearing Corporation
No. , Road, Division No. , with a super built-up
area of sq.ft. together with % share of undivided interest in the
land equivalent to sq.ft. along with common areas and facilities
including car parking lot in the basement, which Flat / Apartment is
morefully described in the schedule hereunder and hereinafter called the
Schedule. WHEREAS the SELLER of the Flat / Apartment, he having purchased
the same from Sri. in terms of Sale Deed dated duly
registered as Document No. Book – I, Volume at Pages
on date at the Office of the Sub-Registrar, since
then the SELLER has been in possession and enjoyment of the Schedule Flat /
Apartment on getting the bifurcated khata from the Corporation of the City
of duly transferred in his name bearing No. vide Khata
No. dated and on payment of taxes and levies
thereon as sole and absolute owner thereof. WHEREAS the SELLER herein
being desirous of selling the Schedule Flat / Apartment, offered the same to
the Purchaser and the Purchaser has agreed to purchase the Schedule Flat /
Apartment in terms of an oral agreement for a total sale consideration of
Rs. (Rupees only) and the Purchaser in terms of
the aforesaid oral agreement agreed to pay the entire sale consideration at
the time of execution of the sale deed. IN CONSIDERATION of the Purchaser
having paid the entire sale consideration of Rs. (Rupees
only) as aforesaid, the receipt of which has been duly
acknowledged by the SELLER, who acquits the Purchaser from making any
further payments towards sale consideration, the SELLER, as beneficial
owner, DOES HEREBY GRANT, CONVEY, TRANSFER BY WAY OF SALE AND
ASSIGN unto and in favour of the Purchaser the Schedule Flat / Apartment
and every part thereof together with the right, title and interest therein, with
all the benefits, advantages, concessions, licenses, hereditaments,
easementary rights, equities, claims, demands etc., attached to belonging to
and reputed to belong to the Schedule Flat / Apartment TO HOLD, TO
POSSESS AND TO ENJOY the same for ever free from all encumbrances,
subject to common rights of owners of remaining shares of undivided
interest in the land and the Flat / Apartments attributable thereto. The
SELLER hereby declares and covenants with the Purchaser that he is the sole
and absolute owner of the Schedule Flat / Apartment and has a clear, legally
valid and marketable title thereto and therefore an absolute right to sell and
convey the same to the Purchaser in terms of this Deed. The SELLER further
declares that he has not done any acts, deeds or things so as to curtail,
restrict or prejudice his right to convey or prevent him from selling the
Schedule Flat / Apartment in terms of this Deed. WHEREAS the Purchaser
having now paid the entire sale consideration as detailed below, has
requested the SELLER to execute the Sale Deed in his favour and the SELLER
has duly agreed thereto, NOW THEREFORE THIS DEED OF ABSOLUTE SALE
WITNESSETH AS HEREUNDER: 1. The SELLER hereby confirms that the
Purchaser has paid the entire sale consideration as under: (a) Amount paid
by Cheque No. Dated drawn on
Bank, Rs. (b) Amount paid by Cheque
No. Dated drawn on Bank,
Rs. Total Rs. Rupees Only. The
SELLER hereby further declares that the Schedule Flat / Apartment is free
from all encumbrances, lien, charge, mortgage, lease, court or other
attachments, lis-pendens, acquisition and requisition proceedings, minor’s
claims or any other adverse proceedings or claims from third parties which
are in any way detrimental to the interest of the Purchaser. The SELLER
hereby assures the Purchaser that all taxes and levies on the Schedule Flat /
Apartment have been paid up to date and arrears if any, till the date of the
Sale Deed shall be duly paid by him and future taxes in respect of the
Schedule Flat / Apartment shall be paid by the Purchaser. The SELLER hereby
declares and covenants with the Purchaser that he shall do or cause to be
done all acts, deeds and things which are legally and reasonably required to
be done at the instance of the Purchaser for morefully and perfectly assuring
the right, title and interest of the Purchaser in the Schedule Flat / Apartment
herein conveyed and the Purchaser shall bear such expenses. The SELLER
hereby indemnifies and shall keep the Purchaser or his successorsin-title
fully indemnified against any loss or liability, cost or claims, action or
proceedings, if any should arise, at any time in future against him owing to
any defect in or for want of clear and marketable title or due to any default,
violation or non-compliance of any of the declarations or covenants herein.
The Purchaser shall be the sole and absolute owner of the Schedule Flat /
Apartment with attendant rights of ownership, possession, enjoyment and
shall be entitled to deal with or dispose off the Schedule Flat / Apartment as
he deems fit without any interference, obstruction or hindrance from the
SELLER or anyone claiming under, through or in trust from him. The Stamp
duty, Registration charges and other incidentals have been borne by the
Purchaser. The SELLER has this day delivered the vacant possession of the
Schedule Flat / Apartment to the Purchaser along with all the available
original title deeds and documents which are in his possession pertaining to
or relating to the Schedule Flat / Apartment. The Purchaser shall be bound to
become Member of the Association of Apartment Owner’s and duly comply
with the provisions of Karnataka Apartment Ownership Act, 1972 and the
rules thereunder and shall abide by the bye-laws and majority decisions of
the said Association to be formed and comply with other requirements of the
aforesaid Act. SCHEDULE OF FLAT / APARTMENT (Conveyed under this deed)
All that piece and parcel of immovable property being Flat / Apartment
No. , Floor of the building known as “ ”, situated
at and bearing Corporation No. , Road, Division
No. , with a super built up area of sq.ft. together with %
share of undivided interest in the land equivalent to sq.ft. along with
common areas and facilities attributable thereto which area includes one car
parking lot in the basement and the composite property is bounded by:

On the East: On the West: On the North: On

the South:

Market Value property is Rs. (Rupees only) The

Stamp duty is paid on the market value as computed above.

IN WITNESS WHEREOF the parties herein have affixed their respective

signatures to this Sale deed at on this day of
month of years in the presence of the witnesses:
WITNESSES:

1. SELLER.

2. PURCHASER.