A Sale Deed is a legal document that records the transfer of ownership from the seller to the buyer. While preparing a Sale Deed, all the clauses of the Transfer of Property Act should be carefully examined and drafted to lessen the risks involved. The clauses should be drafted after understanding your requirements and liabilities.
Everywhere we hear phrases like renting out an apartment to a tenant, mortgaging land for purposes of loan, leasing out shops, buying real estate, etc. This demonstrates the various ways with which transactions revolve around the land. For doing such transactions, individuals/ companies/ government authorities may engage in transactions of buying or selling land and come across a legal transaction called a Sale Deed. It holds substantial value to buyers as well as sellers. Before we move on to understand the contents of the sale deed, let us first discuss what a sale deed is.
Table of Content:
1. What is a Sale Deed?
2. How to draft a Sale Deed
3. Documents required for Sale Deed Registration
4. Format of Sale Deed
5. Clauses in a Sale Deed
6. Mandatory Disclosures to be obtained from Seller of Property for Sale Deed
7. How to get a certified copy of a lost sale deed?
8. Frequently Asked Questions
What is a Sale Deed?
It is one of the most important legal documents required to be executed between the seller and the purchaser to complete the transaction at the time of purchasing a property. These parties are also referred to as the ‘grantor' and ‘grantee' in legal parlance. A sale deed indicates that the title of ownership has been transferred from the seller in favor of the buyer; or in simpler words, the ownership has been changed from the seller to the buyer.
So, a Sale Deed is essentially a document that there’s proof of such a transfer. Not only does it describe the property in detail, but it also outlines the rights and obligations of each party.
The sale deed is made on a non-legal stamp paper of a value prescribed by the state government. Any person who is dealing with the property will come across a sale deed. Therefore, a precaution must be taken to not use a model or draft sale deed which is available at the first instance. This is because you may want certain clauses to be added, modified or deleted depending on the situation.
How to draft a Sale Deed
Steps involved in the transfer of property by way of Sale Deed are:
STEP 1: Understanding your requirement: Hire a lawyer and discuss your requirements with him/ her.
STEP 2: Drafting: Based on your responses, the lawyer will draft the Sale Deed within 3 working days for your review and approval.
STEP 3: Printing of Sale Deed: After you’ve approved the draft of the sale deed, the Sale Deed will be printed on a non-judicial stamp paper.
STEP 4: Fixing an appointment with the sub-registrar: The lawyer will make an appointment with the sub-registrar’s office under whose jurisdiction the property is situated.
STEP 5: Registration of Sale Deed: You along with two witnesses and the lawyer will visit the office of the sub-registrar to sign the document and get it registered by paying the registration fees.
STEP 6: Registered Sale Deed: Once the deed is signed and registration charges are paid, the registered sale deed shall be issued by the sub-registrar's office.
Documents Required for Sale Deed Registration in India
Draft of Sale Deed
Power of Attorney, if any
Building Plan sanctioned by the Statutory Authority
Allotment Letter from the Builder/Co-Operative Society/Housing Board
All title documents of the property owner
A Copy of all registered previous agreements (in case of resale property)
Latest tax paid receipts
Latest electricity bill & receipt for the said property (in case of resale property)
NOC from Apartment Association (in case of resale property)