What Is A Sale Deed?

A sale deed is a legal document that signifies the transfer of ownership of a property from the seller to the buyer. It includes essential details such as the property description, sale consideration, and terms and conditions agreed upon by both parties.

The sale deed differs from other documents such as an agreement to sell in terms of its legal status and purpose. A sale agreement outlines the terms of a property transaction, serving as a preliminary contract between the buyer and seller. It does not transfer ownership but sets the groundwork. On the other hand, a sale deed is the final, legally binding document that completes the transfer of property ownership. Once the terms agreed in the sale agreement are fulfilled, a sale deed is executed.

Thus, the meaning of a sale deed lies in its role as conclusive evidence of ownership transfer and the rights and obligations of both parties. Once registered, the sale deed ensures the legality of the property transfer, offering protection to both the buyer and seller against any future disputes.

Sale Deed Format

Although the format of a sale deed is similar to other deeds such as a mortgage deed or a gift deed, the contents and clauses differ greatly. When creating a sale deed draft, various components and clauses need to be included in accordance with the Transfer Of Property Act of 1882. Apart from this, a few more clauses can be added to the draft as per the wishes of the buyer and the seller.

Some of the essential components of a sale deed draft include-

• Details of Both Parties



Details of both the buyer and seller such as their address, contact numbers and age need to be included.



• Description of the Property



A full explanation of the property such as its area, dimensions, and complete address has to be recorded. For example, if the land for sale in Tambaram is measuring about 750 sq ft and is located in a residential area, then such details would have to be mentioned clearly in the sale deed.



• Consideration of the Sale



The sale price agreed upon by the parties needs to be mentioned under this section. Additionally, information such as the mode of payment, advance payment, if any, and the date of instalments should be clearly stated.



• Date of Possession



The sale deed format should mention the date when the possession will be handed over to the buyer by the seller. This is an important clause in terms of solving future disputes relating to the possession of property.



• Indemnity Clause



This is a mandatory clause to ensure that, at the time of sale, the property does not have any additional taxes, loans, mortgages or other charges. It also requires the seller to pay any such charges before finalizing the sale.



• Witnesses of the Sale



According to the law, the signatures of two witnesses are required at the time of executing the sale deed. At least one witness should be present from both parties’ sides and their details are to be mentioned in the deed.

Documents Required For Registering Sale Deed

To register the sale deed, certain documents are required from the seller of the property. These documents not only verify that the seller is the actual owner of the property but also play in settling any future disputes. The documents required for sale deed registration include the following-

• Sale agreement
• Payment receipts
• Property tax receipt
• Encumbrance certificate
• Copy of the building/layout plan
• No Objection Certificate (NOC)
• Completion certificate
• Occupancy certificate
• Possession letter
• Allotment letter
• General Power of Attorney

Sale Deed Registration Process

In India, a sale deed needs to be registered under the Indian Registration Act of 1908 for it to be legally binding. Although the registration process for a sale deed is uniform across India, there are slight variations from state to state.

Here is a step-by-step breakdown of the sale deed registration process-

• Payment of Stamp Duty



Once the sale deed is finalized and all the terms have been agreed upon, one is required to pay the stamp duty. The stamp duty is imposed on the circle rate or the actual value and can range anywhere between 3-10%, depending on the state in which the property is located. For example, if one is looking at land for sale in Maraimalai Nagar, Chennai, then the stamp prices will be determined by the state of Tamil Nadu. One can pay the stamp duty online or by visiting the authorized centre.



• Printing of Sale Deed



After payment of the stamp duty, the sale deed needs to be printed on the stamp paper purchased from an authorized stamp vendor. In case one has paid the stamp duty online, then the e-stamp needs to be attached to the sale deed.



• Registration at the Sub-Registrar’s Office



One needs to make an appointment at the sub-registrar’s office for the registration. On the appointment date, the buyer and seller must be present at the time of registration along with their witnesses. The signing of the sale deed has to be done in the presence of the sub-registrar. Once this is done, the original registered sale deed can be collected in 15-20 days after registration.




Thus, registering a sale deed is crucial for property transactions and has various benefits. It provides public notice of ownership transfer, safeguards the rights of both buyer and seller and makes the deed legally enforceable. Unless registered, a sale deed is not a valid document in the eyes of law.