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Sales Deed

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What is Sales Deed?

A Sale Deed is a deed by which a seller transfers his right on the property to the other, who acquires absolute ownership of the property. The buyer should ensure the title of the seller before the execution of the Sale 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.

Advantages of Sales 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.


  • A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Sale Deed by you.
  • Once the objectives of the same are clear, the lawyer shall draft a sample Sale Deed accordingly.
  • The draft Sale Deed shall be sent to you, for your review.
  • The whole process takes around 3-4 working days.

What Does The Deed of Sale or Sales Deed Mean By?

A Sales Deed is a legal document that acts as evidence against the transfer of ownership of property in the name of the buyer from the person who is selling or the seller. And the same document will further act as the main document for selling the same property again if the buyer then wishes to do so in future because this is an establishment of his proof of ownership of respective property.

How to Execute a Sale Deed Agreement?

The Sale Deed or the deed itself is executed subsequently to a contract called Sale Deed agreement. This is done after the compliance of various different detailed terms and agreement which are agreed by both parties i.e the buyer and the seller.

This document is the evidence by which the seller will be transferring his right onto the property to the one who purchased it. It is also known as conveyance deed.

Things to Keep In Mind While Making a Sale Deed.

  • The property must not be under any burden or encumbrances
  • The buyer must ensure the title of the seller involved before executing the Sale Deed document. It should be checked whether there’s any burden or encumbrance to be precise on the property involved in the agreement and whether the buyer is making this purchase with respect to such encumbrance. If not so then the seller is supposed to repay the loan to get the papers of property cleared of any burden on it. The purchaser or the buyer must verify any existence of such encumbrance over the property from the registrar’s office.

  • All payments must be complete before releasing the property by the owner or seller.
  • All the payments by virtue of situation like cess and property tax, electricity bills and other changes like society maintenance charges and water bills must be already paid by the seller before the execution of Sale Deed.

  • Mortgage on property and involvement of mortgagee during Sales Deed.
  • In case the property is under a mortgage the mortgagee will take possession of the Sale Deed agreement as a security with regard to getting back payments over the loan.

Points to Know While Making Of the Sale Deed Document

Initially the Sale Deed document is prepared as a draft which both the parties will agree to and approve to proceed. This draft Sale Deed document will contain details with regard to the property in question like the following:-

  • The details of both parties
  • The details of property in question
  • Sales consideration that is agreed upon.
  • What is the amount paid in advance
  • Mode of payment
  • Time limits or time frame consideration for making relevant payments
  • The time when the original document is to be handed over etc.

What Are The Legal Formalities For Sale Deed?

The draft of Sale Deed is written and prepared on a non judicial stamp paper by “stamp act” of whichever state the property is in. The liability is of the buyer to pay for stamp duty according to the rules of the stamp. After completion of all these formalities the final main Sales Deed document is prepared. Which will transfer the rights of a seller to the buyer of the property? Following are some legal formalities:-

  • All the pages of Sale Deed should be signed
  • The sales deed shall be witnessed by two witnesses giving their full names and ids and signatures
  • The property requires to be registered under the judiciary sub registrar’s office.
  • All the involved and concerned parties must be present at the time of registration.
  • All documents must be presented in their original form
  • The identities of the buyer to authenticate the document like his photos, signatures, and thumb impressions are to be stamped onto the document.
  • The original document must be registered within four months from the date of execution or else as penalty ten times the charges of original registration charges may be taken.

The liability of payment for the stamp duty, as well as registration charges, lie onto the purchaser.

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