Last Updated: Feb 19, 2024

What is a sale deed?

A Sale Deed is an important legal document used in property transactions. It's like a final agreement or a receipt which shows that the seller has transferred the property (like a house or land) to the buyer. This document proves that the buyer now owns the property. It includes details like the property's location, size, price, and the terms of the sale. Once this document is signed and registered, it means the property officially belongs to the buyer. It's like the final step in buying property that makes everything official.

How it works?

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Drafting Process

STEP 1: Understanding property details and requirement: Lawyer will discuss this with you. 

STEP 2: Drafting of the Agreement: Lawyer will draft your sale deed after an initial discussion.

STEP 3: Printing of Sale Agreement: The Sale Deed shall be printed on a non-judicial stamp paper of the value as prescribed by the state government.

 

Why LegalKart

  • Senior Property Expert Lawyers: We will get your document drafted/reviewed by Senior Expert Property lawyers. You can track the progress of your document on our platform at all times.
  • 4.5 Customer Score: Clients are delighted with our service! They have consistently rated us high because of our focus on delivering quality output and providing regular updates.
  • Responsible Delivery: Our team of experienced business advisors are just a phone call away. Our team will ensure that your interaction with the expert lawyer is smooth and seamless and the document draft is delivered to you within the committed timeline.

 

Deliverables

Our deliverables include:

  • 30 Minutes of Talk-Time with the Lawyer for drafting/reviewing the Agreement
  • First draft of the documents will be delivered to you within a maximum of 2 working days
  • Post-delivery of the first draft – 2 Iterations per Document to incorporate your suggestions/changes
  • Assistance of Registration by Senior Expert Property Lawyer before the Sub-Registrar office if you buy Registration product also.

Why a good sale deed is critical for your property?

Having a well-drafted sale deed is critical in the process of buying or selling property for several reasons:

  1. Legal Proof of Transaction: The sale deed is the primary legal document that serves as proof of sale and transfer of ownership of the property from the seller to the buyer. It is a vital record that establishes the buyer as the lawful owner.

  2. Clarity of Terms: A good sale deed clearly outlines all the terms and conditions of the sale, including the agreed-upon price, payment schedule, and any other important details. This clarity helps prevent misunderstandings or disputes between the buyer and seller.

  3. Description of the Property: The deed provides a detailed description of the property, including its exact location, size, boundaries, and any other relevant details. This precise description helps avoid disputes related to property specifics.

  4. Protection against Legal Disputes: A comprehensive sale deed can protect both parties from future legal troubles. It includes warranties and representations by the seller regarding the title and the condition of the property, which can be crucial in case of any legal challenges or claims.

  5. Compliance with Statutory Requirements: A proper sale deed is drafted in compliance with the legal requirements of the land and property laws in the relevant jurisdiction. This compliance is necessary for the deed to be legally binding and valid.

  6. Record of Encumbrances and Clear Title: The sale deed should mention if the property is free from encumbrances or if there are any liens, mortgages, or legal claims against it. Ensuring a clear title is crucial for the buyer's peace of mind and for securing mortgage or loans against the property.

  7. Registration and Stamp Duty: The sale deed needs to be properly stamped and registered as per the laws of the state in which the property is located. This process is essential for making the deed legally valid and enforceable.

A well-prepared sale deed is indispensable for ensuring a smooth and legally secure property transaction. It provides legal protection, clear title transfer, and serves as an essential record of the agreement between buyer and seller, thereby preventing potential legal issues in the future. 

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Frequently asked questions

What is a sale deed?

A sale Agreement is a document through which the Seller transfers his rights and interest in a property to the purchaser/ buyer, who in turn acquires absolute ownership over the property.

Who pays the stamp duty and registration charges – buyer or the seller?

As per law, the buyer has to pay the stamp duty and registration charges. However, any other arrangement with regard to the sharing of stamp duty and registration charges between the buyer and seller can also be incorporated in the Sale Deed. 

 

How much stamp duty is to be paid in case of purchase of property?

In India, stamp duty varies and it is some percentage of the sale value of the property, depending on the state in which such property is situated. You should check your state duty structure for property.

 

Is it mandatory to get a sale deed registered in the sub-registrar office?

Yes, according to the Registration Act, 1908, it is mandatory to get a sale deed registered in relation to immovable properties whose value is more than Rs. 100/-.

Can a sale deed be cancelled?

Once the document has been registered it can't be cancelled unless through an order of the court.

Who can execute sale deed?

A sale deed is executed after the execution of the agreement to sell and after compliance of various terms and conditions detailed in the agreement to sell as agreed upon between the buyer and seller. It can only be executed by a person who has a legal and marketable title over the property that is to be transferred under the sale deed. (Refer to section 53A of Transfer of Property Act)

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