General Agreement

Basic Overview of the Concept of Sale Deed

Sale Deed

All of us have heard about various ways through which transactions take place like mortgaging of land, leasing out land and buying real estate’s or renting out land. In order to engage in this or to conduct these transactions, a person may come across a renowned phrase “Sale Deed“. It contains the record of the transfer of ownership. When someone buys a house etc. the deed of sale is one of the important documents a person has. It is of utmost importance to both buyers and sellers. To understand the whole concept related to this term, we need to understand its meaning.

Meaning of Concept of Sale Deed

A Sale deed is a legal document that enlists the details regarding the sale of a property. A deed of sale shows that the ownership of a property has been transferred from one person (seller) to the other (buyer). It contains proof of such transfer. The deed of sale enlists the terms and conditions also, apart from the title of a property, of the agreement with respect to the sale of a property. The sale deed of land is made on a non-judicial stamp paper of a value prescribed by the state government.

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What are the steps for transfer of property by the sale of deed?

The first and foremost step is to draft a deed of sale. It may be done by a professional lawyer. As per your responses, the lawyer shall draft a deed and seek your approval.

Once you approve the draft of the deed of sale, it will be printed on a non-judicial stamp paper.

Thereafter an appointment is fixed with the sub-registrar. The sub registrar’s office shall be selected according to the jurisdiction of the property where it is situated.

The document is signed by you and two witnesses at sub registrar’s office, and it can be registered after paying the sale deed registration charges. Once the above-mentioned formalities are completed, the registered deed of sale will be issued by the sub-registrar.

What are the documents needed for Sale Deed registration?

The following documents are required for registration of a deed of sale:

  1. Draft of the deed of sale
  2. Power of attorney
  3. Plan of the building approved by the statutory authority
  4. Letter of allotment from the concerned authorities
  5. Title documents of the owner of the property
  6. Receipts of the latest taxes paid
  7. In case of resale of property- electricity bill and NOC from the association of apartment
  8. Copy of previously registered agreements

What are the payments done with respect to sale deed?

The buyer and the seller are required to make certain payments with respect to a deed of sale. A buyer pays for the stamp duty and registration fees. In contrast, the seller ensures that there are no outstanding dues with respect to the property like property tax, electricity and water bills etc. these must be cleared prior to signing the deed of sale agreement.

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Essential ingredients of a Sale Deed Draft

There are certain important ingredients that must contain in a deed of sale draft before being legalised. These are mentioned below.

  • The agreement must specify whether it is a deed of sale or deed of mortgage. Apart from selling a property one may lease or mortgage their assets; therefore, it is critical to clarify.
  • The deed of sale agreement must include the name, address, age of the parties involved and they must be referred to as the lessor and lessee or the buyer and seller.
  • The deed of sale must contain every particular of the property. The location of the property, area of the plot or construction area and other relevant details should be mentioned.
  • After a sale agreement is signed, the agreement mentions that both the parties have agreed to buy and sell the property and transaction details are mentioned.

After a deed of sale is signed, the buyer gets the title of the property with all the rights to the property.

What must be kept in mind before executing a sale deed?

Before executing a deed of sale, the buyer must ensure that the title of the property is free of all hindrances. The buyer can verify the status from the registrar’s office before purchasing a property. Once the status is checked for any hindrances, the buyer must check that all the statutory payments have been cleared and no outstanding due or permission has to be taken for the transfer of property.

The buyers must know that the deed of sale is one of the essential documents that establish the proof of ownership after a property is bought; therefore, they should acquire this document.

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What happens after a sale deed is signed?

Once the concept deed of sale is signed, one can next proceed with the registration, the deed of sale shall register the sale of the said property. The parties under the deed of sale reach the sub registrar’s office along with the witnesses and the required documents and sign the property deed. The certified copy of the said property can be made available once the agreement is signed with the name of the buyer.

What is the difference between Agreement of Sale and Deed of sale?

The basic difference between an agreement of sale and deed of sale has been enumerated below.

  • An agreement of sale implies the future transfer of a property, whereas a deed of sale is the immediate transfer of the title of a property.
  • In case of agreement of sale risk or the liabilities remain with the seller till the property has been transferred whereas in a deed of sale, the risk is immediately transferred to the buyer.
  • The agreement of sale is an executory contract that has not been fully implemented, whereas the deed of sale is an executed contract.
  • Breach of sale in case of an agreement of sale may lead to suit for damages whereas a breach of sale in deed of sale leads in a legal complaint and monetary compensation as well.
  • The registration of agreement of sale is not mandatory, but under the deed of sale, it is mandatory.

What are the advantages of a Sale Deed?

A Concept deed of sale helps in avoiding ambiguity as it defines the rights, acts, obligations of the parties involved, thereby clearing any confusion among the parties. It also provides legal protection in the form of the rental agreement as there may be a need for a legal document if the value of the assets is on the higher side.


It can be concluded by the above-mentioned facts that the concept deed of sale is an important legal document and one must carefully scrutinise everything pertaining to the deed of sale and must not rush with things because once a legal document has been approved, it shall be taken as a final word if any conflicts arise in future.

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