What is sale deed?

What is sale deed?

A sale deed is a legal document that proves that a property has been transferred from the seller to the buyer. A sale deed acts as the main legal document, confirming the sale and the transfer of ownership of property from the seller to the buyer. The registration of a sale deed concludes the property purchase process.

Details in sale deed

A sale deed usually consists of the following information:

Details of the buyers and sellers: A sale deed carries names, age details and addresses of both the buyer and the seller.

Property description: The sale deed carried complete detail of the property, including the total area, details of construction, the exact address and surroundings.

Property value: Sale deed mentions the amount for which the property is being sold.It provides the exact breakup of the payment. It mentions how much money has been paid as advance and how much paid at the time of registration. It mentions stamp duty and registration fee details as well along with the mode of payment.

Date of delivery: The sale deed clearly mentions the date on which the seller intends to give possession of the property to the buyer. It also mentions the time frame in which the property title will be actually passed on to the buyer.

Indemnity clause: Under this clause which is invariably part of sale deed, the seller promises to pay the buyer for any damages in case of disputes with regard to the ownership, resulting in monetary losses to the buyer.

Sale deed registration

According to the Indian Registration Act, 1908, any agreement for transfer of any interest in an immovable property of value more than Rs 100, is required to be registered. So, if you have purchased any property under any agreement for sale, without it being followed by a proper sale deed, you do not get any right or interest in the property purported to be transferred under the agreement of sale.

This absolute rule is subject to an exception provided under Section 53A of the Transfer of Property Act. Section 53A provides that where the buyer has obtained possession of the property that is subject matter of the transfer, while fully complying with his part of the obligation under the agreement, the seller shall not be entitled to disturb the possession so granted to the buyer. It may be noted that Section 53A provides a shield to the proposed transferee against the transferor and debars the transferor from disturbing possession of the transferee, but it does not cure the title of the buyer to the property. The ownership of the property still remains with the seller.

So, in the cases where you have purchased any property under a sales agreement and got possession, the title of the property still remains with the developer, unless a sale deed subsequently has been executed and registered under the Indian Registration Act. Thus, it becomes clear that a title in an immovable property can only be transferred by a sale deed. In the absence of a duly stamped and registered sale deed, no right, title or interest in an immovable property, accrue to the buyer of the property.

Documents for sale deed registration

Chain of title
Registered agreement to sell
Sales deed document
Proof of stamp duty payment
Proof of registration fee payment
Proof of TDS payment
Approved building plan
Loan documents
NOC from electricity department
NOC from pollution control board
NOC from water works department
Share certificate
No-objection certificate from RWA
Identity proof of buyer
Identity proof of seller
Identity proof of witnesses
Address proof of buyer
Address proof of seller
Address proof of witnesses

How to get certified copy of sale deed?

The sub-registrar’s office is responsible for property registrations and maintaining these records till eternity. One can get a certified copy of the sale deed by applying with the sub-registrar of the area concerned.

Can a sale deed be cancelled?

A sale deed can be cancellation if the seller and the buyer have an agreement to this effect. Sections 31 to 33 of the Specific Relief Act, 1963, specify the conditions under which a sale deed can be cancelled. These conditions include:

• The deed should have been registered under the Indian Registration Act, 1908.

• The individual feels that the deed is voidable or has a doubt that such a deed will cause him injury, if left outstanding.

Things to remember when executing a sale deed

• Make a check list of documents you must have.

• Keep copies of all the documents along with originals.

• Don’t forget to carry pen, pencil, eraser, stapler, adhesive, additional photos, etc., when you go for sale deed registration.

• It would be appropriate to keep the day for this task itself. This is a time-taking procedure all said and done.

What is sale agreement?

Sale agreement is signed between the buyer and the seller once they reach a verbal agreement about property sale. A sale agreement mentions the terms, conditions and other crucial aspects of the future sale.

The Transfer of Property Act, 1882, which regulates matters dealing with the sale and transfer of house property, defines the contract for sale or an agreement for sale as under:

“A contract for the sale of immovable property, is a contract that a sale of such property shall take place on the terms settled between the parties” – Section 54. Section 54 further provides that “It does not, of itself, create any interest in or charge on such property.”

All sale agreements have to be documented and registered to have a legal validity. Passing its order the Balram Singh versus Kelo Devi case on September 23, 2022, the Supreme Court has ruled that an unregistered agreement to sell is not admissible as evidence in a permanent injunction suit.