General Agreement

Sales Deed Registration: Process

Sale Deed Registration Process

According to Section 54 of the Transfer of Property (TP) Act, 1882, a sale is defined as the transfer of ownership in exchange for a price paid or promised, part-paid or part- promised. A sales deed is a document that renders the sale complete. A seller transfers the rights of ownership of the property to the buyer through the sale deed. It is a crucial document as it proves the purchaser has become the owner of a property after buying it. A sales Deed lists the details related to price and terms and conditions on which the two parties reached an agreement for the sale of the property. If a property is meant for the future and there are terms and conditions attached, then it is called an agreement for sale. A sale deed is completed when there is an immediate transfer of property.

What is a Sale Deed?

A sale deed also known as final deed or conveyance deed is a legal document used in property

transactions as a shred of primary evidence for sale and transfer of ownership of property in favour of the buyer from the seller. It is a legal instrument in writing which transfers the ownership rights of a property from one person to another in exchange for a price paid or some consideration. Sale Deed is done for the sale or purchase of the immovable property. The person transferring the property is known as the transferor or seller, while the person paying an amount to get the property is called the transferee or buyer. It also acts as proof that the buyer is the complete owner of the said property. A sale deed must be registered under The Registration Act, 1908 within four months from the date of execution.

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What are the Key Components of a Sale Deed?

A sale deed consists of all the relevant information pertaining to the sale and is the most valid and crucial document in the purchase of the immovable property. The deed must be drafted on a non- judicial stamp paper of value as set by the State Government. Each state in India has a predetermined value of stamp paper for the drafting of sale deeds.

While drafting a sale deed the document must mention the following details:

List of Documents for Sale Deed

Who Pays for Execution of a Sale Deed? 

  • The buyer pays the stamp duty and the registration charges.
  • The seller ensures that all dues regarding the property, which includes the loan taken for the property,  property tax, water and electricity bills are not pending before the final sale deed agreement.

Process of Sale Deed Registration

The following steps are undertaken to register a sale deed:

  • Estimating the value of a property based on the circle rate that is the minimum value set by the State Government’s revenue department or the local development authorities at which the sale can occur in that area.
  • The actual circle rates of the area and the price paid for the property are compared. While calculating the stamp duty, the higher of two values must be considered. After that non-judicial stamp paper of the estimated cost has to be purchased.
  • Subsequently, the deed is prepared and typed in stamp papers.
  • In the next step, the parties must approach the Sub-Registrar’s office to get the sale deed registered.
  •  Two witnesses must accompany the parties.

What are the Documents Required for Sale Deed Registration?

The documents required in a sale deed Registration are as follows:

S.No List of Documents  
  1   Draft of Sale Deed or Title deed or Conveyance Deed    
  2   Records of Rights and Tenancy Corps(RTC) extracts    
  3 Katha Certificate and Extracts  
  4 Mutation Register Extracts  
  5 Joint Development Agreement  
    6 General Power of Attorney  
7 Building plan sanctioned by the Statutory Authority.
8 NOC from Electricity Department /Pollution Control Board/ Water Works/ Air Port Authority  
  9 Supplementary agreement / Ratification Deed (if any)  
Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.  
  11 In case of any loan on the property (Current or past) -Original Property Documents with Bank  
  12 Sale agreement with the Seller
  13 All title documents of the landowner.
  14 In case of the resale property a copy of all the previous registered agreements.
  15 In case of resale of property No Objection Certificate or NOC from the Apartment Association.
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How the Indemnity Clause in a sale Deed protects a Buyer?

Monetary compensation paid from one party to another in case of any future losses is indemnity. The indemnity clause in a sale deed administers that all the information provided by the seller to the buyer is true and their ownership over the property is unencumbered. In this clause the seller promises to pay the buyer any damages in case of any dispute with regard to the ownership, resulting in monetary losses to the buyer. This clause is generally inserted during the purchase of a plot as it involves higher risk.

What is the Difference Between the Agreement of Sale and Sale Deed?

Agreement of Sale Sale Deed
1. An agreement of sale implies future transfer.   Through sale, deed property is transferred immediately.
2. Risks remain with the seller.   Risks in the sale are transferred immediately.
3. Agreement of sale is an executor’s contract. It is an executed contract.  
4. Any kind of breach of terms and conditions of an agreement of sale will result only in the suit for damages. In case of breach of sale will result in a suit for the price as well as damages.
5. Agreement of sale differs from state to state. It is a mandatorily registered instrument.

Execution of Sale Deed

  • After completing all the formalities, the deed is prepared.
  • The sale deed is executed by all the parties concerned.
  • All the pages of the deed are to be signed by parties concerned.
  • The deed should be signed by at least two witnesses giving their full names, signatures, and addresses.
  • The sale deed needs compulsory registration at the jurisdictional Sub-registrar office.
  • In case the purchaser of the property cannot be present personally before the sub-registrar, he can authorize a representative by providing Power of Attorney to a representative to sign and present the documents on his behalf.
  • The photos of the purchaser, thumbprints and signatures are attached in a sale deed.
  • The documents must be presented for registration within four months from the date of execution of the deed.
  • If documents are not presented within four months, a grace period of another four months is permitted on payment of penalty.
  • The registrar may levy a maximum of 10 times the registration charges as penalty.
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Contact Enterslice for Sale Deed Registration

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Sale Deed Registration process


The sale deed is enforced subsequent to the execution of the sale agreement and after complying with all the terms and conditions mentioned in the sale agreement as agreed upon by the buyer and the seller. The purchaser must get a title search done or obtain an Encumbrance Certificate to check and verify the title of documents of the seller before getting the sale deed registered. It is not suggested to rush into things when it comes to signing a deed. Scrutinize everything in detail as once the legal document is signed, there is no alternative but to accept the words in the document as the final verdict in case of any conflicts arising in the property.

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