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AMITY LAW SCHOOL

TOPIC-DRAFTING OF SALE DEED

SUBMITTED TO: SUBMITTED BY:

MS. AISHWARYA PANDEY MOHD. AMAAN

A8111117124

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INTRODUCTION
A Sales Deed is a deed by which a seller transfers his right on the property to
the buyer, who acquires absolute ownership of the property. The buyer should
ensure the title of the seller before the execution of the Sales Deed. Thus it is
governed by registration Act and is an important document for both the buyer or
the transferee and the seller or transfer or.
Such provisions related to a sales deed is defined under section 54 of the
Transfer of Property Act, 1882. Any form of transfer of ownership from one
person to another person for some form of valuable consideration would come
under the purview of a sales deed. This form of document would consider the
final stages of the sale of a particular property.
There is some form of transfer of ownership of property from the seller to the
buyer for some form of valuable consideration. The buyer through this deed
would become the absolute owner of the property.
All the respective rights, terms and conditions related to the property would be
mentioned in the sales deed. If the rights are present for some form of future
property then such sales deed would be an agreement to sell. In all property
transactions, there is a document known as the sales deed.
Statutory meaning of a Sales Deed
Sales deed has specific provisions under the Transfer of Property Act, 1882
(TPA). Under section 54 of the TPA, the sales deed is defined as some form of
transfer of property from one person to another person for some form of
valuable consideration.
Apart from this, the provisions of the Registration Act, 1908 would be
applicable to Sales Deed in India. Such deed has to be registered as per the
provisions of the above act. In order to be valid the sales deed has be signed by
both the parties: the buyer and seller.
Such deed has to be registered within 4 months from the date of execution of
the sale deed.

Advantages of Sales Deed

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The following advantages can be obtained by registering the sale deed in India:
 Avoids Any Fraud
By registering the sale deed, there would be effective compliance carried out by
the parties. Both the buyer and seller would compliant with the relevant
provisions of the act by registering the sale deed
 Avoids ambiguity
A Sale Deed clearly defines the acts, rights and obligations of the parties
thereby reducing the ambiguity among the parties to the contract.
 Provides legal protection
There is always a requirement of a legal document if the value of asset involved
is high. Therefore it serves as a legal protection in the form of rental agreement.

What should a sale deed include?

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 of the buyers and sellers.
 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.
 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 registration.
 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 dates of payment, the mode of
payment, etc. The price and the details of the transactions made should be
mentioned in both figures and numbers. The sale deed should also
mention the receipts of the sale transaction.
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 Delivery & possession of the property- the deed should specifically

mention the date of handover to and possession by the buyer.
Procedure for Sales Deed Registration
The following steps have to be carried out for registering a sale deed in India:
 Know the Circle Rate
First and foremost, the area of the property must be based on the circle rate.
Hence, it is important to understand the circle rate of the property. The circle
rate of the property is determined by the revenue department of the State
Government or by the local development authorities where the sale is going to
occur.
 Calculate the Respective Stamp Duty
In the next step; the applicant would have to take estimation of the circle rate
and the respective stamp duty. After this a non-judicial stamp paper requires to
be obtained by the parties.
 Preparation of Sale Deed
In the next step, the sales deed must be drafted by the parties and typed on the
stamp paper.
 Get it registered with the Sub-Registrar
In the next step, the parties must get the sale deed registered with the sub-
registrar. Along with this, the requirement of witnesses (2 witnesses) must be
present.
What are the main components of a Sales Deed in India?
The following are the components of a sales deed in India:
 Parties Information
 PAN information of the buyer and the seller
 Consideration
 All forms of representations
 Encumbrance Clause
 Stamp Duty Payment
 Information on Registration Fee
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 Clause related to Indemnity

 Resolution of Disputes
 Governing Law and Jurisdiction
 Witnesses Information
 Parties Information
First and foremost, the sales deed must have as much as information related to
the parties in the sale deed. This will include the name and address of the buyer
and seller of the sales deed. Apart from this, other relevant information must be
included in the sales deed.
 PAN information of the buyer and seller
This clause would contain information related to the permanent account number
of the parties of the sales deed.
 Consideration
As per the Indian Contract Act, 1872 such information requires being present.
There has to be some form of consideration given by either party. In such case,
the consideration provided by the buyer would be the sale price for the property
and the consideration provided by the seller would be the immovable property.
 All forms of representations
The Sales deed must ensure that all forms of representations are present in the
form of writing. All warranties must also be attached to the property.
 Encumbrance Clause
Apart from the above, the sales deed must contain the clause related to
encumbrances which are attached to the property. The property must be free
from any form of encumbrances which arise. This would be related to the
positive covenants arising from the property. Encumbrances would relate more
to negative covenants arising from the property.
 Stamp Duty Payment
Sales deed is a legal document, hence information related to the payment of
stamp duty must be provided by the party. Such information must also contain
who is paying the stamp duty on the appropriate immovable property.
 Information on Registration Fee
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This would include the information related to the registration of the sales deed.
Here all information related to the property must be included.
 Clause related to Indemnity
There must be a clause related to indemnity if there is any form of issues
present with the property. Such clause would require the party in breach to
indemnify the party in loss for any damages suffered.
 Resolution of Disputes
There has to be a clause related to dispute resolution system used by the parties.
The method of settlement of disputes must also be mentioned here. If the parties
want to consider litigation or other methods such as out of court settlement or
dispute resolution.
 Governing Law and Jurisdiction
This clause would have information related to the law which would affect the
parties. The jurisdiction would be the place at which the parties would have to
settle their case in case of a dispute.
 Witnesses Information
This would include the information related to the witnesses who are going to be
a part of signing the sales deed for the property.
Documents required for Sales Deed in India
The following documents are required for a sales deed in India:
 Complete Information on the Sales Deed
 Information on Rights and Tenancy Corps (RTC) extracts;
 Joint Development Agreement;
 Power of Attorney;
 Information on Katha Certificate and Extracts;
 The Mutation Register Extracts;
 An allotment Letter from the respective society
 Original Loan Document related to the Loan
 An Agreement of Sale with the Seller
 Original Title documents related to the property
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 Sanction plan of the building or the property

 NOC from the Electricity Department, Pollution Control Board, Water
Works and Air Port Authority;
 Supplementary Agreement or Deed of Ratification
 In case of a resale of the property a copy of all the previous registered
agreements;
 In case of a resale of the property, No Objection Certificate from the
Apartment Association.

Process of registration of sale deed

Step 1: Preparation
1-You must pay the total consideration amount as per the agreement to a sale
before registration of the sale deed.
2-Next thing you should remember that there should not be any arrears due
on a property. Such as previous loans, house tax, society dues, etc. If there are
such dues left then the registrar can refuse to register sale deed.
Step 2: Calculation of Stamp Duty
i. Stamp duty is imposed on the circle rate or actual value whichever is
higher. Stamp duty can be between 3 -10% [depends upon on state]. In
Delhi, stamp duty is 6% for male, 4% for female, and 5% for joint
ownership (where the property is a purchase in the name of wife and
husband).

ii. Along with stamp duty, you need to pay 1% for the registration charges.

Step 3: Payment of Stamp Duty

Method 1: E-Stamping
i. Visit Stock Holding Corporation of India
site https://www.shcilestamp.com/ and click on line payment option.
Online Payment facility is available for Delhi, Gujarat, Chhattisgarh,
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Karnataka, Himachal Pradesh, Odisha, Tripura, Ladakh, Chandigarh, and

Jammu & Kashmir for now. Get yourself registered by entering the
necessary details and pay the stamp duty through Net Banking/Debit
Card/NEFT/RTGS/FT.
ii. After submission of stamp duty, you are required to carry a print out of
the Online Reference Acknowledgement No. & are requested to visit the
nearest Stock Holding Branch to take a final print out of the e-Stamp
Certificate.Every stamp paper has a unique identification number that can
be used for future reference.
iii. You can also visit the nearest SHCIL/Bank Authorized Collection Center,
pay stamp duty there, and provide your necessary details. SHCIL/Bank
Authorized Collection Center will issue stamp paper.
iv. A list of SHCIL/Bank Authorized Collection Center is available on
https://www.shcilestamp.com/. Choose state then click SHCIL/Bank
Authorized Collection Center and get a pdf in which list of approved
Banks is given. For Delhi visit
https://www.shcilestamp.com/ACC_delhi.pdf

Method 2: Non-Judicial Stamp Paper

i. Purchase stamp paper for the required amount from the Authorized
Stamp Vendor in your area. Visit < https://www.shcilestamp.com/
to get a list of Authorized Stamp Vendors.
ii. Print the sale deed on the stamp paper but if the sale deed has more
pages than the stamp paper then you can print the rest deed on the
plain pages and attach it with the stamped deed.

Step 4:  Draft and Print Deed

i. Draft sale deed by mentioning buyer, seller and payment details, a sale of
terms etc. The sale deed should not be conditional. 
ii. If you have an e-stamp then print the deed on plain paper and attach it
with e-stamp. 

Step 5:  Registration @ Sub Registrar Office

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i. Take an appointment for the nearest sub-registrar, will give you a token
number in which date and time mention for the appearance in front of the
sub-registrar.
ii. You can take an appointment online also only for those states which
provide an e-stamping facility. For Delhi visit, https://srams.delhi.gov.in/
select your area then click on the yes button if your documents are
complete. Enter the e-stamp number and verify your e-stamp number.
After verification, you will receive a message in which details of the
appointment are provided. 
iii. On the appointment date, the buyer and seller must be present at the time
of registration along with two witnesses each.
iv. The buyer and seller have to sign each page and witnesses have to sign
only a last page. Buyer and seller fingerprints will also be taken at the
time of registration.

Step 6:  Collection of Registered Sale Deed

i. Collect token slip after signing the sale deed in the sub-registrar office.
Token slip is used for future references and while collecting the original
registered sale deed.
ii. Original registered sale deed can be collected in 15-20 days after
registration. In case of a loan, the bank will directly collect original
registered deed from the sub-registrar office.
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Format of Sale Deed

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REFERENCES-
i. https://www.legalbites.in/registration-of-sale-deed/
ii. https://www.scconline.com/blog/post/tag/sale-deed/
iii. https://vakilsearch.com/sale-deed