SALE DEED

I. Definition of Sale Deed:

1. Legal Basis: Sale deed finds its legal foundation in Section 54 of the Transfer of Property
Act, 1882.
2. Operative Clause: According to the statutory definition, "Sale" signifies the transfer of
ownership, wherein the consideration may be in the form of a paid amount, a promised
sum, or a combination of both.
II. Understanding Sale Deed:
1. Nature of Document:
• A sale deed is a meticulously crafted and legally binding document.
• It necessitates the endorsement through the affixation of the concerned parties'
signatures.
2. Scope of Application:
• Predominantly employed for the transfer of ownership in real estate or vehicular
assets.
3. Functionality:
• Serves as the principal instrument facilitating the change of legal ownership.
III. Objective of Sale Deed:
1. Formalized Transfer:
• The sale deed serves as a written, formalized instrument.
• Facilitates the transfer of the entire spectrum of ownership rights from the current
proprietor to the acquiring party.
2. Consideration Exchange:
• The fundamental purpose is to effectuate the transfer in exchange for a
consideration.
• The consideration may manifest as a paid amount, a promised sum, or a
combination of both.
3. Conclusive Nature:
• Acts as the conclusive and final document in the process of ownership transfer.
• Essential for ensuring the legality and completeness of the ownership transition.
In summary, the sale deed, as defined by Section 54, is a legally binding document serving as the
operative instrument for the formal and conclusive transfer of ownership rights, primarily in the
context of property or vehicle transactions.
IV. Necessity of Sale deed
i. Evidence of ownership:
In a court of law, it is accepted as a legal document and contains information about the ownership
transfer from the seller to the buyer.
ii. Legally enforceable:
The sale deed, which details the terms and circumstances of the sale, is a legally enforceable
document. It contains information relating to the transaction, such as the purchase price, the
method of payment, the date of possession, and other crucial terms and conditions. After being
signed and recorded, the sale deed is a contract that must be followed by all parties.
iii. Title transfer:
In order for the title to pass from the seller to the buyer, a sale document is required. To make the
transfer of ownership lawful and enforceable in a court of law, it must be signed on non-judicial
stamp paper with a defined value and registered with the appropriate regulatory body.
iv. Avoid legal disputes:
A sale deed assures that the terms and circumstances of the sale have been comprehended by the
buyer and the seller. It assists in preventing any future legal issues or complications.

V. Important clauses in the Sale Deed

i. Description of property:
This clause includes the complete description of the property being sold, such as its location,
boundaries, size, and other relevant details.

ii. Consideration:
This clause specifies the total amount paid by the buyer to the seller for the property, including
any advance or deposit made.

iii. Payment terms:

This clause specifies the payment terms agreed upon by the parties, such as the mode of payment,
payment schedule, and any interest or penalty for delayed payments.

iv. Possession:
This clause specifies the date of transfer of possession from the seller to the buyer and the
consequences of delay or failure in giving possession.

v. Representations and warranties:

This clause includes representations and warranties made by the seller, such as clear title, absence
of any encumbrances, and compliance with all applicable laws.

vi. Indemnification:
This clause provides for indemnification by the seller for any loss, damage, or liability arising out
of any misrepresentation or breach of warranty.

vii. Arbitration clause:

This clause provides for the resolution of disputes arising out of the sale deed through arbitration,
rather than litigation.

viii. Governing law:

This clause specifies the law governing the sale deed and the jurisdiction of the courts in case of
any disputes.

ix. Mode of Payment:

The form of payment for the amount of the property can be paid by cash, demand draft (DD),
check, or net banking transfer, depending on the agreement between the two parties, i.e., seller and
buyer. Any preferred or ultimately agreed upon method of payment should be specified in the Sale
Deed alongside the value of the property. The Sale Deed has to contain any further information
regarding the total amount paid in installments and each installment's dates.

VI. Execution of Sale Deed:

i. Preparation for Transfer: Legal Instrument:
• Sale deed serves as the legal document facilitating the transfer of ownership from
one party to another.
• Executed when there is a planned change in the title of a specific immovable
property.
ii. Verification Process: Parties' Confirmation:
• Both the buyer and the seller meticulously verify all the pertinent property
documents before proceeding.
iii. Signing Process:
Mutual Agreement:
• Once the verification is complete, both parties, the buyer and the seller, enter into
a mutual agreement by signing the sale deed.
Inclusion of Witnesses:
• Two witnesses are required during the signing process.
• Witnesses endorse the sale deed by providing their names, addresses, and
signatures.
iv. Registration at Sub-Registrar's Office:
Formalization of Transaction:
• After signing the sale deed, the next step involves registering the property at the
sub-registrar's office.
Submission of Original Documents:
• Original property documents are submitted to the registrar's office for the
registration process.
v. Incorporation of Buyer's Information: Buyer's Details:
• The sale deed includes essential information about the buyer, such as their
photograph, thumbprints, and signature.
vi. Legal Formalities:
Witness Participation:
 • Witnesses play a crucial role in endorsing the validity of the sale deed by adding
their own signatures to the document.
Documentation Requirement:
• Original property documents must be delivered for the registration process to
proceed smoothly.
In essence, the execution of a sale deed involves a meticulous process where both parties confirm
the property details, sign the deed in the presence of witnesses, and subsequently register the
property at the sub-registrar's office, incorporating essential buyer details. This comprehensive
process ensures the legal and formal transfer of ownership.

VII. Registration of Sale Deed

The transfer of property ownership from the seller to the buyer is legally recognised and
authenticated by the registration of a sale deed, which is a crucial legal necessity. The Registration
Act, 1908 governs the registration of sale deeds in India and Section 17[3] of the Registration act
makes it necessary.

……………………………………FORMAT……………………………………………………
 DEED OF ABSOLUTE SALE

This DEED OF ABSOLUTE SALE is made and executed on this _______ day of ______________, Two
Thousand _______

BETWEEN
Sri ____________________, son/wife/daughter of Sri/Late _______________, aged about _______ years,
holding PAN _____________, by Caste ________, by Nationality Indian, residing at
_____________________________________________,
hereinafter called the "SELLER" (which expression shall mean and include his legal heirs, successors,
successors-in-interest, executors, administrators, legal representatives and assigns) of the ONE PART.

AND
Sri __________________________________, son of _______________________, aged
about _______ years, by Caste __________, by Nationality Indian, holding PAN _____________, residing
at _____________________________________________,
hereinafter called the "PURCHASER" (which expression shall mean and include his legal heirs, successors,
successors-in-interest, executors, administrators, legal representatives and assigns) of the OTHER PART.

The SELLER and the PURCHASER are hereinafter referred collectively as parties and individually as party.

WHEREAS the SELLER is the absolute owner, in possession and enjoyment of the piece and
parcel of ______ land measuring about ____ decimal, lying and situated in R.S. Plot Number ____,
corresponding L.R. Plot Number ____, Recorded in R.S. Khatian Number _____ and L.R. Khatian
Number ____, at Mouza _____, J.L. Number _____, Touzi Number ______, under Police Station
__________, Registration Sub-District _________, in the district of ________________, more
fully and particularly described in the schedule here under written and hereafter referred to as the
"SCHEDULE PROPERTY”.
ANDWHEREAS the SCHEDULE PROPERTY was the self acquired property of __________,
deceased father of the SELLER and he purchased the same from Sri __________________, son
of _____________ of _________________________________, by virtue of a Sale Deed dated
________________, registered in the office of the _____________________________, in Book
1, Volume No. ____, Pages ____ to _____, Being Number ___________ for the Year _____.
ANDWHEREAS the said _________ died in-estate on _________ leaving behind his only son
namely, Sri _______________, the SELLER herein, as the only legal heir.
ANDWHEREAS the SELLER herein, as the only legal heirs of the deceased ____________, have
become the absolute owner of the SCHEDULE PROPERTY since the death of his father
_____________ on and he has been enjoying the same with absolute right, title and interest sice
then and he has clear and marketable title to the SCHEDULE PROPERTY.
ANDWHEREAS the SELLER being in need of funds to meet his personal commitments and family
expenses have decided to sell the SCHEDULE PROPERTY and the PURCHASER has agreed to purchase
the same.
ANDWHEREAS the SELLER agreed to sell, convey and transfer the SCHEDULE PROPERTY to the
PURCHASER for a total consideration of Rs._________ (Rupees
___________________________) only and the PURCHASER herein agreed to purchase the same
for the aforesaid consideration and to that effect the parties entered into an agreement on the
_________________ .
NOW THIS DEED OF SALE WITNESSETH:

1. THAT in pursuance of the aforesaid agreement and in consideration of a sum of Rs._________

(Rupees ___________________________) only received by the SELLER in
cash/cheque/bankdraft and upon receipt of the said entire consideration of Rs._________ (Rupees
___________________________) only (the SELLER doth hereby admit, acknowledge, acquit,
release and discharge the PURCHASER from making further payment thereof) the SELLER doth hereby
sells, conveys, transfers, and assigns unto and to the use of the PURCHASER the SCHEDULE PROPERTY
together with the water ways, easements, advantages and appurtenances, and all estate, rights, title
and interest of the SELLER to and upon the SCHEDULE PROPERTY TO HAVE AND TO HOLD the
SCHEDULE PROPERTY hereby conveyed unto the PURCHASER absolutely and forever.

2. THAT THE SELLER DOTH HEREBY COVENANT WITH THE PURCHASER AS FOLLOWS:
i. That the SCHEDULE PROPERTY shall be quietly and peacefully entered into and held and
enjoyed by the PURCHASER without any interference, interruption, or disturbance from
the SELLER or any person claiming through or under him.
ii. That the SELLER have absolute right, title and full power to sell, convey and transfer unto the
PURCHASER by way of absolute sale and that the SELLER have not done anything or knowingly
suffered anything whereby their right and power to sell and convey the SCHEDULE PROPERTY to
the PURCHASER is diminished.

iii. 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 SELLER shall discharge the same from and out of his own fund and keep the
PURCHASER indemnified.

iv. That the SELLER hereby declares with the PURCHASER that the SELLER have paid all the taxes,
rates and other outgoings due to local bodies, revenue, urban and other authorities in respect of
the SCHEDULE PROPERTY 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 for the earlier period, the same
shall be discharged/borne by the SELLER.

v. That the SELLER have handed over the vacant possession of the SCHEDULE PROPERTY to
the PURCHASER on ___________ and delivered the connected original title document in
respect of the SCHEDULE PROPERTY hereby conveyed on the date of execution of these
presents.
vi. That the SELLER 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.
 vii. That the SELLER 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 all documents in the name
of the PURCHASER and undertakes to execute any deed in this respect.

SCHEDULE OF PROPERTY
All that piece and parcel of _____ land measuring about _____ decimal, lying and situated in R.S.
Plot Number ____, corresponding L.R. plot Number ____, Recorded in R.S. Khatian Number ____
and L.R. Khatian Number ____, at Mouza _____, J.L. Number ____, Touzi Number _______,
under Police Station ______, Registration Sub-District ______, in the district of ____________,
butted and bounded by:
On the North :
On the South :
On the East :
On the West :
IN WITNESS WHEREOF the SELLER and the PURCHASER have set their signatures on the day
month and year first above written.

______________________________
SELLER

______________________________

PURCHASER
WITNESSES:

1.

2.