Sale Deed
Sale Deed
Sale Deed
Articles
Acts
Judgments
Formats
FAQs
Directory
Helpline
More
Before explaining the term ‘Sale Deed’ let me define ‘Agreement To Sell’ which
proceeds ‘SALE DEED’ and it protects the interest of both buyer and seller. An
agreement to sell is a legal written document on which the conveyance deed is
drafted under which both the parties will settle certain terms and conditions i.e. seller
will be intending to transfer/sale the property and buyer will be intending to
purchase it. An agreement to sell has to be executed by the seller and the buyer on a
non-judicial stamp paper and the same has to be duly signed by both the parties. It
has got legal value and if necessary can be produced as evidence in a court of law.
An agreement is a pre-requirement for the sale of an immovable property where in
the buyer will pay to seller some token amount as advance and seller must issue
receipt for the amount received as token amount. While entering into an agreement
to sell, the seller should mandatorily state all the material defects in the property as
well as in the title and it is the right and duty of the buyer to investigate the title
before buying the property. There should not be any Lis- Pendens i.e. pendency of
suit in a court of law regarding the property in sale. Lastly the agreement to sell must
contain all the terms and conditions which are necessary for transaction of a valid
sale of an immovable property.
A sale deed is one of the most valuable legal documents in a purchase or sale of a
property. A sale deed is drafted by legal draftsman on a non-judicial stamp paper of
the requisite value as prescribed by stamp act of the particular state concerned. A
draftsman must include certain clauses while preparing the construction of the sale
deed which are as follows:
Name of the deed: It is the parties who have to decide that which deed has
to be prepared e.g. THIS DEED OF SALE or THIS DEED OF MORTGAGE or THIS
DEED OF LEASE etc. and based on which there will be transfer of ownership of
immovable property.
Parties to sale deed: An absolute sale deed must contain the names, age and
respective addresses of parties to the transaction and both the parties i.e. seller
and buyer must be competent to enter into a contract so that it will not affect
the validity of the valid sale. It is very much important that the sale deed is duly
signed and executed by both the parties with their bona-fide intention. A valid
sale deed must start with clear description of the parties.
Description of the property sold: A valid sale deed must contain full
description of the property which is the subject matter of sale. 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.
Agreement for sale: An agreement for sale is the main requirement of the
drafting of the valid sale deed and both the parties must mutually settle the
terms and conditions of the agreement so that it will not affect the rights of the
parties. A sale deed always precedes agreement to sell.
Sale consideration clause: A sale deed must include the clause stating the
sale consideration/amount as agreed between the seller and the buyer which
has to be paid by the buyer to the seller on the execution of sale deed. A sale
amount should be clearly stated in sale deed as agreed in the agreement to sell
so that there should not be any onus on the parties to the transaction.
Advance payment if any: If there is any transaction of token amount paid by
the buyer to the seller then it has to be clearly mentioned in the sale deed, and
how much is the remaining balance to be paid on the execution of the sale
deed.
Mode of payment: It is always the buyer who has to decide that how he is
going to pay the sale consideration amount whether by Cash /Cheque/ Demand
Draft and the same has to be agreed by the seller.
Passing of the title: A sale deed should contain the clause when the original
title of the property to be passed to the purchaser. A time limit should be given
to the seller for the transfer of the title. Once the title of the immovable property
is transferred, all the rights will pass to the purchaser.
Delivery of the possession: The possession of the immovable property will
be transferred to the purchaser by the vendor once the registration process is
completed. A clause in the sale deed must state when there will be actual
delivery of the possession.
Indemnity provision if any: 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 before the execution of
the sale deed. In case there is any encumbrance on the property, the seller
needs to repay the loan amount and get the property papers cleared of the
encumbrance. It is the duty of the buyer to verify the encumbrance status from
the office of the registrar.
Execution: Once the Sale Deed is prepared all the parties to the deed shall
execute it by affixing their thumb impression or full signature. Each page should
be signed by the seller and buyer. Any alteration, addition or deletion is to be
authenticated by full signature of the parties. Execution of the sale deed requires
to be witnessed by two witnesses. The witnesses shall give their full particulars
and addresses.
Registration: According to Section: 17 of ‘The Registration Act, 1908’, the
registration of a tangible immovable property is compulsory if the value of the
respective property exceeds rupees 100/- and it is the registration of the
property which makes the sale valid. For getting the registration done both the
parties must be present before the jurisdictional sub-registrar office with the
original documents within four months from the date of execution. A stamp
duty has to be paid by the purchaser to the sub-registrar for getting the
registration done. A certified copy of the registration document to be obtained
for the future reference.
Testatum: Once all the terms and conditions have been settled between both
the parties, a sale deed is prepared. The executed sale deed should be witnessed
by at least two witnesses one from seller side and one from buyer 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 to be hand over
by the seller to the purchaser. All the statutory rights along with ownership,
possession, title, interest will get vested in favour of the purchaser.
Default clause: An agreement for sale of immovable property should include
the clause stating if there is any default by the vendor or the purchaser then the
party who rescinds the contract need to pay damages to the other party for the
breach of contract so that it will not affect to the execution of the sale deed.
Since drafting of sale deed requires abundant caution and presence of mind with
sufficient knowledge of property and other allied laws, it would be better if services
of advocates who have vast experience in property transactions are utilized to avoid
unexpected and uncalled for litigations which may arise in a poorly drafted sale deed.
Share this:
Related
Tagged CONVEYANCING SALE DEED
‘A’ sold his property to ‘B’ by executing a registered sale deed for Rs. 5 lacs. The
recital of sale deed says that the delivery of property was transferred from ‘A’ to
‘B’. later on the same day itself both ‘A’ and ‘B’ entered into an agreement
containing Rs.100/- value stamp paper. in the said agreement both ‘A’ and’B’
stated jointly that on the date of execution of the above said sale deed ‘B’
advanced an amount of Rs. 10 lacs to ‘A’ for his family expenses, ‘A’ there by
undertakes to pay the said amount along with interest at the rate of 24% per
annum to ‘B’ within 2 years from the date of said sale deed till then both ‘A’ and
‘B’ agreed that ‘A’ can retain possession over the above mentioned property.
further there is a stipulation in the agreement that if ‘A’ fails to pay the entire
debt amount to ‘B’ within 2 years from then onward then ‘B’ can take over the
possession over the said property. But ‘A’ paid interest only for 2 years but not
paid the principle amount. How we can style the agreement between ‘A’ and ‘B’
on 100/- rupee stamp paper. whether such agreement can be a compulsory
registerable document under Registration Act. Whether the said agreement
bears sufficient stamp duty?
Reply
Kuldeep kumar
Reply
DInesh Bajaj
i purachse a land and done a sale agreement with owner and make full payment
to owner .now i want to sell this land to other party.but i want to done sale deed
of land directly from first first owner
Reply
Rajesh Agrawal
Please let me know about the legal status of a sale deed if it is signed by the
seller only and there is no signature of the buyer anywhere. Is it a valid sale
deed.
Reply
JAGDISH CHAND
Reply
Nageshwar rao
If
Reply
Nageshwar rao
Vender have signed only last page of the sale agreement where schedule of
property lies can this agreement valuable
Reply
Anil
If Agreement of Sale has been completed but the papers are not available either
misplaced or lost can ‘sale deed’ still be completed and stamp duty paid.
Reply
Nageshwar rao
Anil Adv
Reply
Vijaykumar
Reply
Suvabrata Roy
I don’t agree with the some views expressed in this article. It is true that a sale
deed always precedes agreement for sale but the agreement for sale need not
always be in writing for oral agreement for sale between the parties is equally
valid in the eyes of law. Moreover, in India it is not mandatory that a buyer
should execute a sale deed. Please don’t provide incorrect information to the
readers.
Reply
Ajit dash
Reply
Suvabrata Roy
yes
Reply
Murali
Reply
Suvabrata Roy
Reply
N. Poovalingam
Reply
ALISHA kapoor
I purchased my flat in 1990. I have deed of possession, paid stamp duty and all
other required documents. But due to some reason saledeed was not done .
Now is it tat for doing saledeed we need to pay current stamp duty amount??
Reply
Suvabrata Roy
There is nothing like deed of possession in India but if sale deed has not
yet been registered and you are intending to register it now then stamp
duty at the rate prevailing on the date of registration will be required to
be paid by the buyer.
Reply
Reply
My problem is, i have purchase Flat from 2 nd owner and i have applied to Bank
for Mortgage loan and submitt all documments to Finance Co. but they notice
that there is no Orignal copy of Deed of Appartment between the 1 st Flat
owner and Builder. now i want to know if Loss the same, what is provision or
subsequent document to getting the Mortgage Loan from the Finance
Company/Bank.
Please suggest or your opinion so i can fight with them legaly with your reply..
thanks a lot..
Reply
Suvabrata Roy
Get a certified copy of the previous sale deed from the office of the
Registrar of Assurances within whose jurisdiction the property is situated.
Reply
Plots in Mysore
Smilee Views has all facilities such as tourist spots, colleges, schools, hospitals
etc. in close vicinity. The lush green parks, convenient senior citizen park, well-
equipped children’s play area makes your home at Smilee Views the choicest
one Like Villa in Mysore, Plots at Mahadevapura Road Mysore, Properties in
Mysore, Plots in Mysore, India.
Reply
prashant h
Reply
Madhusudhan
Hi Mr. Dhawesh,
While trying to sell an old property that we own in Bangalore, which was
purchased in 1995, I noticed that the Seller has omitted to put his signature on
one of the pages. The deed runs to five pages and all signatures are present in
appropriate places everywhere else. The registrar’s seals and advocate’s stamps
are present and the serial number of the deed has been stamped in all pages,
numbered in correct sequence. All witness signatures and other dates are all
proper.
Today, I have been told that the validity of the deed is questionable despite all
the above features being correct, just because of one signature being missed, by
oversight of all parties involved, including the Registrar’s office that executed
the Sale Deed..!!!! No one had noticed it.
In your expert opinion, does this omission make the deed invalid or illegal. What
is the value of all the other seals and stamps that are appropriately placed in the
full document, including on the said page?
Madhusudhan
Reply
Virendra Kumar
Reply
Mpk Murthy
Thanks
Murthy
Reply
Indrani Banerjee
Sir, I would like to know that while making a deed on advance payment, exactly
how is the vendor or the buyer indemnified by the other if the other fails to
fulfill the contract by the deadline agreed upon by both the parties & how is it
so mentioned in the advance contract made.
Reply
preeti verma
our partners want to purchase a land for construction , for which we have to pay
token amount . so we want a format which includes all the details of payment
and the safer side norms for us because we r buyer..and all the required names
of the documents which is needed to purchase a land in raigad dist (neral
-matheran)..
Reply
Deep
The sites adjoining my sites have been mentioned wrongly and hence I need a
rectification deed. I need to understand more and execute this. Pls help or call
me
Reply
Sandeep
how to rectify wrongly typed date in conveyance date. eg the conveyance deed
says 5th oct but the registrar offfce has executed it on 4th oct…how to get this
solved?
Reply
manasa
Ravi
Reply
mishra
I have entered in a sale deed for sale of my property one year avow the sale was
to be finalsed in six months now after one year also the buyer is not buying the
property nor is he letting me sell it to third party. What options do I have
Reply
Prashanth Raghavendra
Rangeet Raj Mitra – Was your query dated 20May13 answered? I have the same
query regarding a property in Bangalore registered in the year 2001. Would
appreciate if you can share information. Thank you.
Reply
Amit Ghosh
Sir/Madam,
I recently done a sale agreement with the developer & all the building related
docs submitted to the bank for the loan process.Now bank is asking for to do
the registration @6% on the mentioned property value before the 1st
disbursement to the developer.Is it compulsory to make the registration before
start the loan amount or is there any rules at bank?.Is this right way to make the
partly registration ?
Reply
vasanthi
Hi sir,
Reply
Ron Basset
Can a company representative please contact me via email email address ron
(@) oxcorp .com .au
Reply
Virendra Kumar
yes
Reply
Bhramaramba P Mrs
dear sir, What is the impact of difference amount in sale deed to sale agreement
for example if we mention the lesser amount in sale deed than sale agreement
what is the implication in future may have to be faced
Reply
verkha
Reply
shivaji
we sale the agriculteral land in ahmednager and some amt recivied by indl and
remaining amt decided to given through cheque as mention in sale deed,done
in front of registerar but still indl not paid and now agree after two yr when i
appled for cancellation of sale deed in court ahmednager but as court is still not
giving any decision but mean while circle officer decleared owner ship of land
…..so what should i have to do now ?
Reply
biplab
The plot of land and the building that i am planning to purchase is in the name
of a lady, her son and daughter. Son lives in the US. A part of the amount
payable will be obtained through bank loan. The bank wants that the sale
agreement must be registered for getting a loan. The problem is that her son
cannot come immediately. What options do i have ? Can the lady get a power of
attorney from both of her son and daughter empowering her to sell the
property on their behalf and to do the needful? Further for registration of the
sale agreement is it necessary that the owners must be present at the of
registration ! Please help…i am at a fix !
Reply
suhas masurkar
Reply
A sale Deed was registered in Delhi 1999 where the document was admitted by
the concerned Sub Registrar without the signature of Vendee (purchaser).The
document was signed by Vendor and the Witnessess at the time of registration.
Is there anything in law under the registeration act or any act that in certain
state in India vendee signature is not mandatory.
Reply
PRASANNA
PRATIKANT PATEL
hello sir,
i purchase home in gujarat in year-2005 and give payment through bank loan to
the seller and done sale deed,after 8 years seller said i want to my home back so
my query is can he cancelled a sale deed through court?.
Reply
sangeeta mehrotra
no way
Reply
sangeeta mehrotra
Reply
BHUPENDRA PATEL
cancelation sale deed is valide if both party (buyar and saler ) are
aggre
Reply
Archana Bhosale
Our society at Kamothe is conveyanced and I asked the society to issue the copy
of conveyance deed but they denied and told me to bring NOC from Builder.
Does it really necessary to have a copy? Otherwise shall i take it from CIDCO
offic? Please guide me.
Reply
Purandar Hegde
Reply
sangeeta mehrotra
through RTI seek information from Survey Dept. and then if necessary go
for a rectification deed.
Reply
PRATIKANT PATEL
Reply
Ashwini
Reply
Meenu
A sale deed registered in sub registrar office by the builder in favour of buyer. As
buyer was abroad, he has not signed the sale deed. Is it a valid sale deed?
Reply
Ina conveyance one witness signed. She have to declare that she know
everything of the conveyance. Under which section of Evidence Act She will
declare.
Reply
yatin shahade
December 4, 2012 at 2:47 pm
Reply
N.R.Kushwaha
I have purchased a agricutural land three years ago. As per the sales deed I got
possession, This land was a joint property of three brothers and they mutually
partitioned the property by keeping in the mind to make the supply of water for
irrigation purpose. Two brothers Out of three have sold their land to me.So
please advice me in this case that Revenue officer can make partition as per the
demand of third brother and reject my registered sales deed.
Now the problem is with their third brother that he was to change the
surroundings and forcefully want to capture the land.
Reply
Radhakrishnan
I purchased & executed a sale deed and registered the same after paying the
stamp duty around one year back. Now I have found that the person from the
developer side who signed as partner in the deed had no power to sign the
deed. How to correct the same to get legal validity for the sale deed.
thanking you
Reply
o.p.banth
i have purchased land in punjab in 1990 and an agreement to sell was signed by
vendors stating that full and final payment has been made and possession
handed over and nothing is due.deed could not be registered .power of attorney
and will was also executed but the seller died and his legal heirs sold the land to
someone else. what is my status now?
Reply
yatin shahade
Reply
yatin shahade
Reply
yatin shahade
Whether agreement for sale or sale deed is compulsory as per law before
conveyance deed is made for the same property. If conveyance deed is made
directly whether it has legal value & if not under which law.
Reply
narender
I purchazed a flat in kamothe navi mumbai wich got registered in march 2008
but as i was not awre of the fact that after there is sale deed. but when I went for
cidco transfer for the sale deed but I dont have made that. Now I want to make
sale deed. what should I do? i am totally confused.
Please help
Reply
Mian WAheed
I signed a token receipt for the sale of my house.The language of the receipt
was ”
AGREEMENT TO SELL house no—between — and —.I–S/O —resident of House
no—- herby enter into an agreement to sell house no— for a consideration of
Rs20500000 in favour of —resident of—.As token money ,I have received Rs-
200000 from the vendee vide cheque no—- dtd—-.The time for REgistered Sale
deed will be 3 months after I have settled my case with—bank ,which fact I will
communicate to the vendee through registerd letterafter the receipt of which
within 15 days.The vendee will pay Rs 5000000/-to me as advance money.
Signed by me and the vendee and witnessed by two witnesses.It was verbally
agreed that on my first demand the vendee will pay me Rs 500000o to enable
me to pay down payment to the bank to seetle everything with the bank and
after 3 months after settlement with the bank the sale deed will be done by
paying the balance amount.After signing of this token receipt I sentr a
regisrtered letter to thevendee demanding Rs 5000000(He did acknowledge my
letter.The same day I communicated this to the vendee telephonically-but he did
not respond fore about 6 months.After about 6 months he claims to have sent a
registered letter confirming that he is willing to make the payment(Though I
never received that letter.He also claims to have sent another letter about 6
monts later(not received by me).In the meanwhile sionce he did not respond to
my demand I was forced to borrow money from my relatives and make the
down payment and settle my affairs with the bank.Instead of making the
payment he decided to file a suit for specific performance.THese are some of the
pertinent details.What is your advice and where edo I stand. Now the value of
that property is at least 5 times
Reply
Solomon John
it was useful
Reply
V Vishwanath
I desire to purchase a house and for which I have to pay token Advance
for the sale amount already decided by both the Seller and myself. For effecting
an advance amount what kind of Receipt has to be obtained from the Seller
please inform me through email
Reply
Reply
Leave a Comment
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
vLyFsdwOfbZo
Post Comment
प्रवक्ता.कॉम से …
जय जगदीश हरे आरति के रचयिता पण्डित श्रद्धाराम फिल्लौरी
किसान आं दोलन :: जातिवाद और राजनै तिक महत्वकां क्षा की पूर्ति का जरिया बना आं दोलन
बत्तियां गु ल हैं
सृ ष्टि की आदि-ज्ञान-पु स्तक वे द का महत्व और हमारा कर्तव्य
ग्लोबल वार्मिं ग बढ़ा रही आकाशीय बिजली की तीव्रता और आवृ त्ति
बे टी बोझ नहीं, बे टी बरक्कत का सबब
स्टार्टअप के जरिए रोजगार सृ जन कर रहे हैं यु वा
Subscribe
More than 10thousand already Subscribed.
Follow on Facebook
© 2021 - Legal News / Law News & Articles – Free Legal Helpline – Legal Tips : Legal India
Cookies help us deliver our services. By using our services, you agree to our use of
cookies. More Information Accept
v