Sale Deed

Sale Deed: A Legal Binding Document for Property Transfers

sale deed

What is a Sale Deed?

A sale deed is a legal document that serves as evidence of the transfer of ownership of real property from one person to another. It’s a necessary step when buying and officially registering a property. The information in the sale deed is used to register the property, and once this is done, the buyer becomes the new legal owner. In India, this document is commonly used in real estate transactions and contains details about both the seller and buyer, a description of the property, and other relevant information. It lists everyone involved and confirms that the property transfer is willingly agreed upon.

As per Section 10 of the Indian Contract Act 1872, the transfer of any immovable property must occur willingly, without any undue influence.

A sale involves the handover of property ownership from one party to another, following specific rules and regulations. The creation and registration of a sale deed, as per the Transfer of Property Act, are conducted through the sub-registrar of the district.

The buyer possesses several rights upon acquiring a property

The right to physically occupy the purchased property.

The right to derive benefits and enjoyment from the acquired property.

The right to transfer or dispose of the purchased property.

The right to sell or lease the property to others.

The right to claim ownership and possess the title of the property.

This type of property transfer is considered “absolute” and cannot be reclaimed or retained by the seller after the full ownership rights are transferred to the buyer. For a sale to be complete, all rights and privileges related to the property must be conveyed from the seller to the buyer.

In any transaction, the intention and substance play a vital role. To legally validate a sale deed under the Transfer of Property Act, the seller must register the deed with the local sub-registrar. Section 55 of the Transfer of Property Act addresses rights, liabilities, and protection against fraudulent acts, emphasizing fair dealings and the responsibilities of both parties.

This ensures smooth circulation of the property and prevents it from becoming stagnant, facilitating hassle-free resale. Section 55 applies unless there is a contract stating otherwise. If the sale deed includes clauses on liability, rights, duties, and fraud prevention, Section 55 is not applicable.

The contract between the buyer and seller, whether expressed or implied, should have clear clauses and terms to prevent disputes. This contract, known as a sale deed, is created on non-judicial stamp paper and requires deed registration as per the Transfer of Property Act, 1882.

Registration of a Sale Deed

A sale deed mainly includes the following details:

  • Buyers’ and Sellers’ Information: Names, ages, and addresses of both the buyer and the seller are mentioned.
  • Property Description: Complete details of the property, such as total area, construction details, exact address, and surrounding environment, are provided.
  • Property Value: The sale deed specifies the selling price of the property and breaks down the payment. It includes details of any advance payment, the amount paid at the time of registration, and specifics of stamp duty and registration fees. The mode of payment is also mentioned.
  • Date of Delivery: The deed states the date on which the seller will hand over possession of the property to the buyer.
  • Indemnity Clause: This clause, typically included in sale deeds, assures the buyer that the seller will compensate for any damages arising from ownership disputes, leading to financial losses for the buyer.


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Q1: Why is a sales deed important?

A sales deed is crucial as it serves as evidence of the property transfer and helps establish the legal ownership rights of the buyer. It provides clarity and protection for both parties involved in the transaction.

Q2: How is a sales deed different from a sale agreement?

A sales deed is a legally binding document that signifies the actual transfer of ownership, whereas a sale agreement is a preliminary contract outlining the terms of the sale. The sale agreement precedes the sales deed.

Q3: Do I need a lawyer to prepare a sales deed?

While it’s not mandatory to hire a lawyer, it’s advisable to seek legal assistance to ensure the sales deed is drafted accurately and in compliance with relevant laws and regulations.

Q4: Is a sales deed required to be registered?

Yes, in most cases, a sales deed must be registered with the local sub registrar’s office to be legally valid. Registration provides public notice of the property transfer and protects the buyer’s interests.

Q5:  What happens if there are disputes after the sales deed is executed?

If disputes arise regarding the property’s ownership or terms of the sale, the indemnity clause in the sales deed may offer protection to the buyer. Legal recourse may be sought to resolve disputes.

Q6: Can a sales deed be revoked or canceled?

Once a sales deed is executed and registered, it is considered legally binding. However, under certain circumstances, such as fraud or misrepresentation, the courts may invalidate the deed through legal proceedings.

Q7: What are the consequences of not registering a sales deed?

Failure to register a sales deed may render it invalid, and the buyer may not have legal ownership rights over the property. Additionally, unregistered deeds may not be admissible as evidence in court.