Sale Deed

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 Introduction

A sale deed is a legal instrument which is executed between the seller and the
purchaser which evidences the sale and transfer of ownership of an immovable
property. A sale deed is supposed to be compulsorily registered under Section
17 the Registration Act, 1908 which mandates that all immovable property
whose value is more than Rs. 100 has to be compulsorily registered. The sale of
an immovable property is defined under Section 54 of the Transfer of Property
Act, 1882 as “Sale is a transfer of ownership in exchange for a price paid or
promised or part paid and part promised”.

What is a Sale Deed

A sale deed is one of the most common documents which is employed for
transferring ownership of immovable property from one person to another. It is
an important document which contains the details of the manner in which the
seller acquired the property, for what consideration the seller is selling the
property to the buyer and all other assurances which the seller gives to the buyer
regarding encumbrances and liabilities on the property. It acts as an essential
document especially for the purchaser as it establishes the proof of ownership of
the property. A sale deed needs to be compulsorily registered in the sub
registrar’s office.

Difference between Sale Agreement and Sale

Deed

A sale agreement is an agreement in which the terms and conditions of a

prospective contract of sale are listed along with the proposed consideration and
details of payment. A deed of sale comes after the sale agreement and is a
document which transfers all rights associated with the property from one
person to another.

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An agreement to sell merely lays down the future intention of parties to sell the
property whereas a sale deed implies immediate transfer of the property from
one person to another.

Liabilities and risks associated with the property are also transferred
immediately in case of a sale deed, whereas in a sale agreement, the risks
related to the property remain with the seller till the sale deed is executed.

There is not compulsory requirement to register a sale agreement, but it is

mandatory to register a sale deed.

Steps in Sale Deed Registration

• Sale deed of land is prepared by property documentation lawyers on

behalf of their clients in accordance with the sale agreement.
• The stamp paper on which the sale deed is registered, is purchased
according to the applicable rate that varies in every state on the basis of
location of the property and gender of the buyer.
• The sale deed must mention the date on which it is registered in office of
the Sub-Registrar.
• The registration fee fixed by the government must be paid. Registration
fee is dependent on the amount that the buyer is paying for the property.
• The buyer and seller have to be physically present along with two
witnesses in office of the Sub-Registrar on the date of registration.
• If the buyer or seller are unable to appear before the Sub-Registrar, a
Power of Attorney can be made to allow another person to appear on their
behalf.
• The documents required for sale deed registration include to two passport
size photographs copy of Aadhar card as a form of identification of buyer
and seller and ID proof of the witnesses.
• The registered sale deed can be collected from office of the Sub-Registrar
after one week is completed from the date of sale deed registration.

Grounds for Cancellation of Sale Deed

Cancellation of sale deed is dealt under Section 31- 33 of the Specific Relief
Act, 1963 which lays down the provisions for cancellation of instruments.
Cancellation of sale deed by court may happen in the following cases:

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1) The sale deed is voidable and person in whose name it is drawn, seeks to
cancel it.

2) Execution of such sale deed may cause harm or loss to the persons involved.

Upon cancellation of sale deed, the court sends a copy of its decree to the
officer in whose office the sale deed was registered. Further, upon cancellation
of sale deed by court, the person who seeked cancellation of sale deed must be
may require the party to whom such relief has been granted, to restore, so far as
may be, any benefit which he may have received from the other party.

Partial cancellation of the sale deed is also possible under Section 32 of the
Specific Relief Act but only in situations in which the rights and obligations
under the instrument are distinct and separable.

Important Clauses in a Sale Deed

It is necessary for every sale deed to contain the following clauses for disputes
to not arise with respect to its registration at a later point in time. The parties
must be sufficiently described with the name of the parties, father’s name and
address. The date and place of execution of the sale deed should be mentioned.

Sample

SALE DEED

This DEED OF ABSOLUTE SALE executed at on this the day of ,

2004 by s/o residing at

hereinafter called the VENDOR of the one part which expression shall include his executors,
administrators, legal representatives, successors etc.

TO AND IN FAVOUR OF

w/o residing at

hereinafter called the PURCHASER of the Other Part which expression wherever the
context so requires shall mean and include his heirs, executors, administrators, legal
representatives, successors etc.

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 WHEREAS the VENDOR herein has purchased the said property more fully
described in the Schedule hereunder from Thiru. in and by sale deed dated
and registered on as Document No. of (year) of Book 1 volume No.
filed at pages to on the file of the Sub Registrar of
.

WHEREAS the VENDOR herein has been in exclusive possession and enjoyment of
the property more fully described in the Schedule hereunder with a constructed house
thereon ,which was constructed by him with his self-earned funds , till date.

WHEREAS the VENDOR is the exclusive owner of the property more fully
described in the schedule hereunder and he has absolute right to dispose of the same as in
the manner he wishes;

AND WHEREAS the VENDOR is in need of funds in order to meet his personal
commitments and family expenses and has decided to sell the property more fully described
in the Schedule hereunder for a sum of Rs /- (Rupees only) and the
PURCHASER herein has also agreed to purchase the same for the said price and to the
effect they entered into an agreement to sell dated .

NOW THIS DEED OF SALE WITNESSETH

THAT in pursuance of the aforesaid agreement and in consideration of a sum of

Rs. (Rupees only) received by the VENDOR in cash and
the receipt of the said entire consideration of Rs. (Rupees
only), the VENDOR doth hereby admit, acknowledge, acquit, release and discharge the
VENDOR from making further payment thereof and the VENDOR doth hereby sell, convey,
transfer, and assigns unto and to the use of the PURCHASER, the property more fully
described in the Schedule hereunder together with the water ways, easements, advantages
and appurtenances, and all estate, rights, title and interest of the VENDOR to and upon the
said property TO HAVE AND TO HOLD the said property hereby conveyed unto the
PURCHASER absolutely and forever.

THE VENDOR DOTH HEREBY COVENANT WITH THE PURCHASER AS

FOLLOWS:

1. That the property more fully described in the Schedule hereunder shall be quietly and
peacefully entered into and held and enjoyed by the PURCHASER without any interference,
interruption, or disturbance from the VENDOR or any person claiming through or under
him.

2. That the VENDOR has absolute right, title and full power to sell, convey and transfer
unto the PURCHASER by way of absolute sale and that the VENDOR has not done
anything or knowingly suffered anything whereby his right and power to sell and convey to
the PURCHASER the property hereby conveyed.

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3. That the property is not subjected to any encumbrances, mortgages, charges, lien,
attachments, claim, demand, acquisition proceedings by Government or any kind whatsoever
and should thereby and the VENDOR shall discharge the same from and out of his own
funds and keep the PURCHASER indemnified.

4. That the VENDOR hereby declares with the PURCHASER that the VENDOR has paid
all the taxes, rates and other outgoings due to Local bodies, revenue, urban and other
authorities in respect of the property more fully described in the Schedule hereunder up to the
date of execution of this sale deed and the PURCHASER shall bear and pay the same
hereafter. If any arrears are found due to the earlier period, the same shall be discharged by
the VENDOR

5. That the VENDOR has handed over the vacant possession of the property more fully
described in the Schedule hereunder to the PURCHASER on and delivered the
connected original title document in respect of the schedule mentioned property hereby
conveyed on the date of execution of these presents.

6. That the VENDOR will at all times and at the cost of the PURCHASER execute, register
or cause to be done, all such acts and deeds for perfecting the title to the PURCHASER in
the property hereby sold and conveyed herein.

7. That the VENDOR do hereby covenants and assures that the PURCHASER is entitled to
have mutation of his name in all public records, local body and also obtain patta in the name
of the PURCHASER and undertakes to execute any deed in this respect.

SCHEDULE OF PROPERTY

The Market Value of the Property is Rs.

In witness where of the VENDOR and the PURCHASER have set their signatures
on the day month and year first above written.

Witnesses:
VENDOR
1)

2) THE PURCHASER

Drafted by:

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