Sale Deed

What is a Sale Deed?

It is perhaps the main authoritative archive expected to be executed between the merchant and the buyer to finish the exchange at the hour of buying a property. These gatherings are likewise alluded to as the ‘grantor’ and ‘grantee’ in lawful speech. A deal deed shows that the title of proprietorship has been moved from the merchant for the purchaser; or in more straightforward words, the possession has been transformed from the dealer to the purchaser.

Thus, a Sale Deed is basically an archive that there’s verification of such an exchange. In addition to the fact that it describes the property exhaustively, however it additionally traces the freedoms and commitments of each party.

The deal deed is made on a non-lawful stamp paper of a worth recommended by the state government. Any individual who is managing the property will run over a deal deed. Thusly, a precautionary measure should be taken to not utilize a model or draft deal deed which is accessible at the principal case. This is on the grounds that you might need specific provisos to be added, adjusted or erased relying upon the circumstance.

Clauses in a Sale Deed

The amount agreed between the buyer and seller must be included in the sale consideration clause. This is the amount that the buyer agrees to pay to the seller during the sale deed execution. The sale amount should be stated clearly on the deed, as it was agreed upon.

Advance Payment And Payment Mode

If you have paid anything in advance to the builder or seller for booking the flat, then this should be mentioned in the sale deed clearly. The remaining amount payable must also be written in the document.  The mode by which you will be paying the amount—cheque, cash or DD must be mentioned along with the consent of the seller to accept it in the form.

Passing Of The Title

The sale deed should mention when the property title shall be passed to the buyer. The seller must be given a time limit for the title transfer. Once the title has been transferred, all related rights shall pass onto the buyer.

Possession Delivery

A clause in the sale deed must bear the information that the possession of the property shall be transferred to the buyer by the seller after completion of the registration process. The sale deed should state the actual date of delivery of possession.

Indemnity Provision

This is mostly applicable in case of a resale property. The clause states that the seller should clear all statutory charges such as electricity bill, property tax, water bills, maintenance charges and society charges and all other dues prior to the sales deed execution. In case a home loan was taken to purchase the property by the original buyer, then the seller must repay the loan and get the papers back from the bank. As a conscious buyer, you should scrutinize the status of encumbrance from the sub registrar or registrar’s office.

Default Clause

Sales agreements should ideally bear a clause that if there is any default on the part of the buyer or seller then the party defaulting shall have to pay a penalty to the non-offending party so that the execution of the sale deed is not affected.

Once the sale deed has been prepared, it must be ratified by two witnesses from both sides. The witnesses shall have to provide their full addresses, signatures and names. The signatures of the buyer and seller must be present in every page.

Mandatory Disclosures

The Transfer of Property Act, 1882 mandates the seller of a property to make certain disclosure, representations and execute certain acts for the purpose of selling immovable property. One of the most relevant provisions in this regard is Section 55 of the Act. Section 55 deals with the ‘Rights and liabilities of buyer and seller’. Under this provision, subsection (1) deals with certain obligations that the seller is bound to undertake. These, therefore are mandatory disclosures and representations. 


Fully Disclose

full disclose to the buyer any material defect in the property or in the seller’s title, or third-party claims, and disputes of which the seller is, and the buyer is not, aware, and which the buyer could not with ordinary care discover;

Request for Examination

to produce to the buyer on his request for examination all documents of title relating to the property which are in the seller’s possession or power;

Best Information

to answer to the best of his information all relevant questions put to him by the buyer in respect to the property or the title thereto


on  payment or tender of the amount due in respect of the price, to execute a proper conveyance of the property when the buyer tenders it to him for execution at a proper time and place;

How to draft a

Sale Deed

Understanding your requirement

Hire a lawyer and discuss your requirements with him/ her.


Based on your responses, the lawyer will draft the Sale Deed within 3 working days for your review and approval.

Printing of Sale Deed

After you’ve approved the draft of the sale deed, the Sale Deed will be printed on a non-judicial stamp paper.

Fixing an appointment with the sub-registrar

The lawyer will make an appointment with the sub-registrar’s office under whose jurisdiction the property is situated.

Registration of Sale Deed

You along with two witnesses and the lawyer will visit the office of the sub-registrar to sign the document and get it registered by paying the registration fees.

Registered Sale Deed

Once the deed is signed and registration charges are paid, the registered sale deed shall be issued by the sub-registrar’s office.

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