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
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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.
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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
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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.
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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.
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Geta 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.
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:
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Format
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.
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Format
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 Deed Sale Agreement
An actual transfer of property The promise of a future transfer of
ownership takes place through a sale property ownership is contained in a
document. selling agreement.
An immediate and complete sale of the A sale agreement suggests that the
property is referred to by a sale deed. property will eventually be sold.
According to the sale document, the The risk connected to the property must
buyer is in charge of the property's be borne by the seller up until the sale of
risk. the property.
A sale deed is an accomplished A selling agreement is an executing
contract. contract, meaning it will eventually be
carried out.
A lawsuit is filed after a breach of Only a lawsuit for damages can be
contract to recover money in the form brought about by a breach of the sale
of damages, an injunction, or agreement.
execution.
The buyer is liable for paying stamp According to state regulations, the selling
duty and registering the sale deed. 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 The buyer is only granted the right to
rights and claims as outlined in the acquire a property in the future under
sale deed. the terms of the sale agreement.
The sale document contains Just the terms and conditions under
information about the individuals which the property will be sold are
involved, the property, and payment included in the sale of the agreement.
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Sale Deed Sale Agreement
information, among other things.
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