A 'SALE DEED' is a legal document executed by the seller/ vendor and the purchaser/vendee which evidences the sale and transfer of ownership of an immovable property.



The sale of an immovable property is defined under Section 54 of the Transfer of Property Act, 1882, as follows: "Sale is a transfer of ownership in exchange for a price paid or promised or part paid and part promised. "


It is compulsory to get a sale deed registered in the Sub Registrar Office. An unregistered sale deed has no value in the eyes of law and does not pass any title to the buyer. The registration of a sale deed is governed by 'The Registration Act, 1908' and is an important document for the buyer/transferee and the seller/ transferor.


A registered sale deed can be used for transferring freehold flats, plots, builder floors, bungalows, apartments, flats, society flats, commercial office, shops etc. The leasehold properties can be now sold through registration of Agreement to Sell, Builder Buyer Agreement, Apartment deed etc.


A registered sale deed can also be executed for transferring the ownership of agricultural land, Leasehold properties (Appendix 12). A sale deed can also be tripartite having a confirming party.


A sale deed is the most common document used for transferring the ownership of a property from one person to another. It is made after the execution of the agreement to sell, and after compliance of various terms and conditions mutually agreed between the seller and the purchaser. Sale deed is the main document which contains the details regarding how the seller got the title to the property, for what consideration the seller is selling the property to the present buyer and assurance to the purchaser that the property is free from all encumbrances and liabilities, etc. A sale deed acts as an essential document for the further sale of the property by the purchaser as it establishes the proof of ownership of the property.


Important points to note in relation to registration of Sale Deed in Pune are:


1. Stamp duty and transfer duty is payable.


2. Registration fee is payable.


3. The stamp duty is payable on the Sale deed as per the Circle rates fixed by the Revenue Department of Govt.of Maharashtra for the locality in which property is situated . If the sale consideration is more than the minimum circle rates fixed by the Govt., then the stamp duty will be calculated on the sale consideration amount mentioned in the Sale deed.


4. Both the Vendor(s) and Vendee(s) have to be present along with their two passport size photographs and identification documents i.e. AADHAR Card and PAN Card.


5. Two witnesses along with identification documents i.e. Aadhar Card need to be present in the Sub Registrar Office for the Registration of Sale Deed.


Important Clauses in a Sale Deed:


A sale deed is one of the most valuable legal documents in a transaction involving the transfer of a property. A sale deed is drafted by a legal draftsman on a non-judicial stamp paper of the requisite value as prescribed by the Stamp act of the particular state concerned. Some of the important clauses that are included while preparing a sale deed are as follows:


Description of the Parties: A sale deed must start with clear description of the parties. The sale deed must contain the Party’s names, their Father/ Husband’s Name and their complete addresses.


Date and Place : A Sale Deed must mention the Date and Place of execution of the Sale Deed by the Seller and the Buyer.


Description of the Property: A valid sale deed must contain the full description of the property which is the subject matter of sale. It must mention whether the property under transfer is a freehold or leasehold and the type i.e. Apartment, Floor, Flat, Plot, Bungalow, Shop, office etc. It must include identification number, total plot area, construction details as well as its location with its surrounding areas. A schedule of the property must be included in the sale deed which will define the exact location where the property is actually situated.


Sale consideration : A sale deed must include the clause stating the sale consideration/amount as agreed between the seller and the buyer, and which has to be paid by the buyer to the seller on the execution of the sale deed.


Passing of the title: A sale deed should contain the clause specifying the time when the title of the property will pass to the purchaser. Once the title of the immovable property is transferred, all the rights will pass to the purchaser.


Indemnity provisions : A seller must clear all the statutory charges i.e. property tax, electricity charges, water bills, cess, society charges, maintenance charges and all other charges relating to the property upto the date of execution of the sale deed. In case there is any encumbrance on the property, the seller needs to repay the loan amount. It is the duty of the buyer to verify the encumbrance status by conducting a title search and getting an Encumbrance Certificate.


Execution: Once the Sale Deed is prepared all the parties to the deed shall execute it by affixing their signatures and thumb impressions. Each page should be signed by the seller as well as the buyer. Any alteration, addition or deletion is to be authenticated by signatures of both the parties.


Registration: According to Section 17 of ‘The Registration Act, 1908’, the registration of an immovable property is compulsory if the value of the property exceeds Rs. 100/- and it is the registration of the property which makes the sale valid. For getting the registration done, both the parties must present themselves in the sub-registrar office with the original documents within four months from the date of execution. A stamp duty and a registration fee has to be paid by the purchaser to the sub-registrar for getting the registration done.


Witnesses: The executed sale deed should be witnessed by at least two witnesses, one of whom should preferably be from the seller’s side and the other one from the buyer’s side, giving their full names, addresses and signatures.


Original documents: Once the property gets registered under the Registration Act, all the original documents of the sold property have to be handed over by the seller to the purchaser.


Other important Clauses:


Responsibilities and timeline for the procedures to be completed


All expenditures such as stamp duty, drafting and registration fee and the distribution of these expenses between the parties.


Declaration by the seller that the property is not subject to any government acquisition


The nature of the title detained by the seller, including any encumbrance such as lease, mortgage, or charge on the property.




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