AMITY LAW SCHOOL

(2015-2020)

Project

On

SALE DEED

Submitted By: -

Faraz Siddiqui A11911115073

B.A, LL. B(H) Section – F

 What Is Sale Deed

A sale deed is the most crucial document of your housing deal. It is the document that you
need to provide as proof of ownership. Many people, however, mistake it for other similar
documents such as the Sale Agreement or the Deed of Assignment.

To understand it better, a sale deed, or the conveyance deed, is one that is drafted at the
time of sale. It is a document that renders the sale complete. Through the sale deed, the
seller transfers the rights of ownership of the property in question to the buyer. Once the
document is drafted and signed, the ownership rights completely get transferred to the
buyer in the deal.

Also, any pending impediments, such as property tax, water and electricity charges and so
on, needs to be paid in full before the sale deed is formatted. Hence, the sale deed usually
contains all such relevant information pertaining to the property under sale.

As the document holds so much importance, a highly skilled individual would need to draft it,
rather than anyone with a little knowledge of what it conveys or signifies. Here is how a sale
deed need to be drafted, for it to be legally binding and properties transferred without any
hassles.
 Elements of a Sale Deed

A sale deed contains all relevant information pertaining to the sale and is the most valid and
crucial document in any sale of immovable property.

The Sale Deed needs to be drafted on a non-judicial stamp paper of value as set by the state
government. Each state has a predetermined value of stamp paper for drafting sale deeds.

Apart from the stamp papers required to draft the deed, any outstanding amount for
legalizing the deed can be paid through Challan, stamping or any other means through which
the state government demands.

The sale deed, at the time of drafting, should have the following details:

1. Type of deed to be prepared: The property can either be sold, mortgaged or leased.
Depending upon the requirement, the ‘sale deed’ will carry the name as ‘Deed of Sale’ or
‘Deed of Mortgage’ and so on.

2. Name and address of the executing parties: Full name, address and any other information
such as age and residence address of the parties need to be specified at the beginning of
the document. Any sale deed is not valid until it carries the names of both the parties in
their relevant places – as seller and buyer or lessee and lessor.

3. Property description: Any immovable property under sale will need to be described, with
address, if it’s a house, number of rooms and so on, and plot area, construction area, any
additions to it, number of balconies, and anything else that is deemed relevant need to
be included.

4. Sale agreement: This is a document wherein both parties agree to ‘sell’ and ‘buy’ and also
give a detailed account of what compensations needs to be paid, and at what date, any
 advance is paid, and agreed and signed upon by both parties. An agreement of sale
proceeds the sale deed, and is a legally binding document, as the sale deed itself. The
mode of payment and the date needs to be mentioned to prevent any disagreements
later.

5. Delivery and the passing of title: The signing of the sale deed by both parties (on each
page of the document) irrevocably transfers the title of the property to the buyer, to and
when they have adhered to the compensation and paid it in full. Any rights of the
property now legally will belong to the buyer.

6. Registration of the document: The registration of immovable property is done in

accordance with the Registration Act, 1908. The parties (buyer and seller) need to be
present in person, with all relevant documents (or their representatives or authorized
agents) in the local sub-registrar’s office to sign/thumb print on the sale deed, and also to
close the deal.

7. Proof of Registration: The proof of registration/a certified copy of the registered property
with the name of the buyer, will be available from the office for future reference.
Each and every single detail needs to be thoroughly analysed and checked by an expert
before signing to prevent any legal hassles.
 Precautions to be taken

1. Ensure that the stamp duty prescribed by the State has been paid in the sale deed. Either
the entire stamp duty should be paid in the form of stamp papers, demand draft or e-
stamping mode. The copy of the demand draft and e-payment challan must also be made
available.

2. Check that signatures of the sellers and buyers are affixed. Previously only sellers were
affixing their signatures.

3. The deed should be numbered.

4. The document must not have any conditions.

5. Check whether the seller has agreed to indemnify the buyer in case if any problem in the
title arises later.

6. Ensure that the description of the property (schedule of property) is in order.

7. The title flow to the property along with the documents evidencing title to the sellers
must be correctly mentioned.

8. In case of the execution of the sale deed by virtue of a power of attorney (POA), ensure
that the power agent has the necessary authority to execute the deed, the POA is in force
and not revoked, and that the principal is alive.