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September 21, 2023

Everything You Need to Know About a Real Estate Sale Deed

Homeownership means different things to different people. For some, it is the stability that a house provides to their children and family. For others, buying a house is a good investment as opposed to paying rent. Despite all the benefits a house comes with, buying a house in India—as in any part of the world—demands a lot of effort towards research and decision making. Considerable time is spent on researching the procedure for registering a property and knowing what documents are required for buying a house; decisions have to be made on a property’s location, its specifications, and amenities desired.

Once you narrow down the property for buying, the next step is property registration. It is a mandatory process that has to be followed while buying or selling a property. According to the Registration Act, 1908, a sale deed is the most important document that signifies proof of ownership while selling or buying a property in India. The article will help you understand all the important aspects you need to know about a real estate sale deed.

What is a sale deed?

A sale deed is a legal document that signifies that a property transaction is legally valid, and the title of ownership is transferred from the seller to buyer. It is drafted on a non-judicial stamp paper that corresponds to the value prescribed by the state government. It is also possible to draft a sale deed online. When a property is registered at the registrar or sub-registrar’s office, a property sale deed is signed by the parties and witnesses involved in the transaction and registered.

What are the components of a sale deed?

The sale deed contains the terms and conditions of a sale. All the information specified in the sale deed must be true and accurate. According to Section 54 of the Transfer of Property Act, the elements of sale include:

  • Parties involved in the sale
  • The subject matter of sale
  • Price
  • Mode of execution

Let’s look at each component in detail.

Deed Type

Deeds are also prepared when people mortgage or lease their property. The document has to specify whether it is a deed of sale, mortgage deed, or a lease deed.


Parties Involved

A sale deed contains the following details of all the parties involved in the transaction i.e., the buyer or the transferee and seller or the transferor.

  • Name
  • Age
  • Address

Property Description

A sale deed contains the details of the property that is being bought or sold. Let’s suppose you are buying a 4 BHK property in Chennai.  The sale deed must document the details of the property, a few of which include:

  • Full address
  • Property type
  • Number of rooms
  • Location of the property
  • Plot area and construction area
  • Registration number of the land

Transaction Details

The sale agreement contains the details of the transaction that are agreed upon by both the seller and buyer. This includes:

  • Date – The sale deed must contain the date on which the title of the property will be handed over to the buyer.
  • Any amount that is paid in advance
  • Sale consideration price – The amount agreed by both the buyer and the seller for the property transaction
  • The mode of payment – Demand Draft, cheque, or online payment

Since the document is legally binding, care must be taken to provide accurate details regarding the payment details like date and mode of payment. This can help prevent discrepancies and disputes at a later stage.

Registration of the Deed

The buyer becomes the legal owner of the property once the sale deed is signed and executed. All the parties involved in the transaction along with the witnesses, with all the necessary documents, must be present at the registering office and sign the property sale deed.

The buyer pays the stamp duty and registration charges when buying a property. On the other hand, the seller pays all the property dues including property tax, water charges, and electricity charges before signing the sale deed. All the property documents must also be passed on to the buyer.

It is important to note that all the original documents must be presented before a sub-registrar within four months from the date of execution. When any party involved in the transaction cannot be present during registration, someone who is granted the power of attorney must be present. Once the registration is done, a certified copy of the registered document can be received from the sub-registrar’s office.

For a homeowner, the sale deed is tangible evidence of the sense of ownership and validity of the deal. Without the document, all the years of hard work and research spent on buying the property will be vain. Hence, it is important to verify all the details specified in the deed to avoid any negative impact on the title.

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