A Guide to Understanding, Drafting, and Exploring Sale Deeds
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A Guide to Understanding, Drafting, and Exploring Sale Deeds

by Godrej Properties Limited

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What is a Sale Deed?

Before proceeding, let us understand the meaning of a sale deed. A sale deed is a legal document that formalises the sale and transfer of ownership of a property from the seller to the buyer. It includes details of the property, buyer, seller, and the agreed-upon sale conditions. Once both parties have signed and registered a sale deed, It establishes the legal handover of the property.

Sample Sale Deed Format 

Here is what a standard sale deed format looks like: 

Components of a Sale Deed

A sale deed in India typically includes the following components:

Description of the Property: Details about the property being transferred, including its location, boundaries, and any identifiable features.

Details of the Parties: Information about the seller (transferor) and the buyer (transferee), including their names, addresses, and other relevant details.

Consideration Amount: The agreed-upon sale price or consideration for the property, mentioned in both words and figures.

Payment Details: The mode and schedule of payment agreed upon by the buyer and seller.

Transfer of Ownership: The document clearly states that the seller is transferring ownership of the property to the buyer.

Encumbrance Certificate: A statement ensuring that the property is free from any legal dues or mortgages.

Indemnity Clause: A clause stating that the seller will compensate the buyer in case of any future disputes related to the property.

Rights, Title, and Interest: Assurance that the seller has the legal right to sell the property and that there are no legal disputes or claims against it.

Delivery of Possession: A statement confirming that the seller has handed over physical possession of the property to the buyer.

Registration Details: Information about the registration of the sale deed, including the date and place of registration.

It's important to note that the exact contents may vary, and it's advisable to seek legal advice during the drafting and execution of a sale deed.

Difference Between Sale Deed and Sale Agreement

Sale DeedSale Agreement
It is a final and conclusive document that legally transfers ownership of the property from the seller to the buyer.It is a preliminary document that outlines the terms and conditions of the property sale. It indicates the willingness of both parties to proceed with the transaction.
It is a legally binding document that completes the property transfer in India. Upon execution, it transfers actual ownership rights to the buyer.It is binding on both parties to the extent that they agree not to enter into similar agreements with third parties for the specified duration. However, it does not transfer ownership.
It is executed after the Sale Agreement once all the agreed-upon conditions are fulfilled and the parties are ready to conclude the sale.It serves as a precursor to the final sale and allows both parties to settle the terms and conditions.
Breach of the Sale Deed can have more severe legal consequences, including legal action for specific performance or damages.Breach of the Sale Agreement may lead to legal consequences, but it primarily results in the loss of the earnest money or deposit made by the buyer.

Sale Deed Documents Required for Property Registration

The Sale Deed is a crucial document in property transactions, and several documents are typically required for its registration. The exact requirements may vary by location, but the following documents are commonly needed for property registration through a Sale Deed:

  • Sale Deed Draft
  • Previous Title Deeds
  • Encumbrance Certificate
  • Khata Certificate
  • Latest Tax Receipts
  • Identity Proof and Photographs
  • PAN Card
  • NOC from Relevant Authorities
  • Power of Attorney (if applicable)
  • Sale Agreement

Can Sale Deed Be Revoked

No, once a Sale Deed is executed and registered, it cannot be revoked or cancelled. Revoking a Sale Deed would require legal grounds and the consent of both parties, which is highly unlikely once the transaction is concluded and registered. This legal finality ensures the stability and security of property transactions.

 

Frequently Asked Questions

1. Is there any validity of the sale deed?

Answer: The unregistered sale agreement remains legally valid for three years from the date of execution. If the sale deed agreement includes a condition, such as the buyer's obligation to register the property within three months, the time limit is extended accordingly.

2. Is it possible to sell a property without possessing the original sale deed?

Answer: No. An original sale deed is one of the crucial and mandatory legal documents required for ownership transfer. To mitigate complications and legal issues, it is essential to have the original sale deed during the property selling process.

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