Sale Deed – What you should know

Sale Deed is a legal document describing the transfer of right, title and ownership of Property by a Seller to a Purchaser at a price either fully paid or to be paid in installments at a future date.


A Sale Deed is executed only after entering into an Agreement to Sale and it is governed by the Registration of Property Act, 1908. An Agreement to Sale should ideally be executed before the Sale deed to bring out the mutually agreed terms and conditions of sale. The entire amount of sale transaction also known as sale consideration is paid at the time of registration of Sale Deed. However, deferred payment of sale consideration doesn’t attract passing of the title to the Sale Deed.

Contents of a Sale Deed: The foremost thing to decide is the title. It becomes important to ensure if the title to the property is free of all encumbrances. Scrutinizing the title documents is a process of knowing the original owner of the property, flow of title and the present owner of the property. After ascertaining that there are no encumbrances, it is also important to ensure that all the statutory payments like water bill, electricity bill or property tax have been paid and no further payments or permission are required for the transfer of property through a sale deed.

The Sale Deed contains the complete details of Buyer and Purchaser, full description about the property which is going to be transferred, details of settlement of loan, if any, the total sale amount and the advance payment mentioning the date of payment along with the mode of payment and indemnity stating the liability of Buyer and Seller if either of them fails to fulfill the terms of the agreement. Sale Deed also mentions the date when the subsequent possession of property with complete title will take place on the payment of remainder amount or fulfillment of some condition.

Execution of Sale Deed: The execution of Sale Deed takes place by affixing either thumb impression or signatures of both the parties. Each Page of the Sale Deed is signed by the parties and any addition, subtraction or alteration has to be verified with signatures by both the parties.

Registration of Sale DeedEvery sale of tangible immovable property exceeding the value of Rs 100/- requires compulsory registration in order to make the execution of sale valid. By the purview of Section 17 of Registration of Property Act, 1908, both parties are required to be present before the jurisdictional sub registrar’s office within four months of the execution of the Sale Deed along with all the original documents. Stamp duty is paid by the purchaser according to the stamp duty rates of the respective state. After this, the registered copy of the sale deed is handed over to the purchaser by the sub registrar office.

Final Result: Once the registration of sale deed gets done then all the original documents pertaining to the property are handed over to the purchaser by the sub registrar. The registration entitles the passing of right title, ownership, interest, possession and privileges associated with the property.

Conclusion: Drafting a Sale Deed requires a sound knowledge of all the legal contents which can be incorporated in the Agreement to Sale so that no discrepancies arise at the time of registration under the Registration of Property Act,1908.

Looking for a Sale Deed? Contact Docket Tech Solutions Private Limited, Bangalore


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