Saturday Brain Storming Thought (121) 10/07/2021



It is an instrument in writing which transfers the ownership of the property or properties in exchange for a price/paid consideration

This is a document that requires to be registered compulsorily

Draft of Sale Deed

1) understanding your requirement

2) drafting for review and approval

3) printing of sale deed

4) fixing an appointment with the sub-registrar

5) registration of sale deed

6) registered sale deed

Documents required for Sale Deed registration

1) draft of sale deed

2) power of attorney if any

3) building plan sanctioned by the statutory authority

4) allotment letter from builder/co Op society/housing board

5) all title documents of the property owner

6) latest tax paid receipts

7) latest electricity bill & receipt for the said property (in case of resale property)

8) NOC from apartment association (in case of resale property)

Clauses in a Sale Deed

1) Parties involved in the sale deed
It mentions the details of the seller and buyer like their names, addresses, ages, contact details, occupations, and the date of execution of the deed

2) Description of the property
Property dimensions, construction details, exact location, surroundings, precise details

3) The Sale Consideration
The price consideration at which the property is bought or sold and it is agreed by the parties indeed, the price is mentioned in both numbers and figures to avoid any sort of confusion

4) The clause regarding payment method
Price agreed between two parties can be made in cash, cheque, DD, transfer through internet banking

5) Advance payment and installments
The sale deed would mention the amount received previously as an advance or a part payment

6) Transfer of Title clause
It expresses the intention of the seller to transfer the ownership in favor of the buyer

7) Delivery of the deed and possession of the property
The deed also specifically mentions on what date the property will come into the possession of the buyer

8) Indemnity clause and the encumbrance clause
To make sure that when the property is sold to the buyer, it is free from any incumbrances ie that includes taxes, charges, dues, demands, arrears, electricity charges, water charges, outstanding bills, house tax, mortgage, development charge, and prior assignments of sale or leasehold

9) Liability in case of default
If either of the parties of the sale deed is at fault, then that party is responsible to make good for the loss caused, this could be in the form of a penalty fee

10) Witness and registration
At least two witnesses must attest the documents along with details such as name, age, address – this is known as testimonium clause

11) Right to quiet enjoyment of property
Vendee (buyer) shall hold and enjoy the same as absolute owner without any interruption from the vendor(seller)

12) Reddendum clause
The function of this clause is to reserve some rights of the seller in the property even though the title is transferred to the buyer

13) Tenedum clause
This clause is included in the sale deed to indicate that the improvements are being sold together with the land

14) Warranty clause (ownership)
By this clause, the vendor warrants or assures the buyer that he is the right full owner of the property and has the legal right to convey the property to the vendee

15) Time is of the essence clause
It is to ensure that all aspects of the property transfer deal happen on time and delay is avoided

16) Rights to call off the deal
One can include a clause that will allow them to back out of the business transaction if certain situations arise, it gives the right to not continue and perform any future obligations towards completing the deal in specified circumstances

17) Dispute Resolution
It lays down a procedure agreed upon by the parties of how to go about in case of a dispute arises ie arbitration, mediation, and conciliation or court

Mandatory disclosures from the seller in the sale deed

1) full disclosure to the buyer any material defect in the property or in the seller’s title, or third party claim and disputes if any

2) produce to the buyer on his request for examination all documents of title relating to the property which are in sellers possession or power

3) the answer to the best of his information all relevant questions put to him by the buyer in respect to the property or the title thereto

4) on payment or tender of the amount due in respect of the price, to execute a proper conveyance of the property when the buyer tenders it to him for execution at a property time and place

5) to take as much care of the property and all documents of title relating thereto which are in his possession between the date of the contract of the sale and the delivery of the property

6) to give, on being so required, the buyer, or such person as he directs, such possession of the property as its nature admits

7) payment and clearance of all government charges and rent accrued due in respect of the property up to the date of the sale

8) nil encumbrance or lien on the property


A lien is a legal right to claim a security interest in a property provided by the owner of the property to the creditor

It is generally used as a guarantee for some sort of legal obligation such as loan repayment

Payment of stamp duty and registration charges

As per law, the buyer has to pay the stamp duty and registration charges

Sharing charges incorporated in the sale deed is accepted

Advantages of Sale Deed

1) it provides legal recognition for your sale transaction

2) it clearly lays down the description of the property, the parties, and their rights and obligations

3) registered sale deed can be used as evidence in case of any legal dispute

4) avoidance of fraud, sale-deed allows the authorities to keep a regular check on any kind of fraudulent transactions of the properties

5) Easier taxation, the total amount of cost involved in the transfer of a property can be precisely determined which allows the process of taxation too much easier for the authorities

6) Establishment of title in the name of the owner

Need of Sale Deed

Registration of sale deed is to have validity before the court of law

Cancellation of the Sale deed

A person cannot cancel a registered sale deed in India unless through an order of the court under section 31 of the Specific Relief Act

Sale deed dast number

It denotes a unique identification number by which a person can search the sale deed at the office of the registrar or any other concerned offices

Agreement to Sale Deed

An agreement to sell is a document that sets the important terms and conditions on which all the transactions will take place in the future

Meaning of witness in the sale deed

The term witness denotes a person who signs on the sale deed admitting to the fact that both the buyer and seller have signed in his/her presence

Meaning of title in the sale deed

The term title denotes that the person has ownership and full control over the property

Selling of property without sale deed by an individual

An individual cannot sell a property without a proper sale deed

Possibility of the loan if the original sale deed is missing

Banks provide loans only on the basis of original documents

It is nearly impossible to obtain loans without original legal documents

Title deed and sale deed

Title deed is any conclusive proof of title

A registered sale deed can be used as a title deed, but not all proof of title is a valid sale deed

Validity of sale deed

The sale deed remains valid from the date of its execution

There is no time limit for the validity of the sale deed

Unregistered Sale Deed

A sale deed that is not registered does not pass the ownership to the buyer even if he has paid the full amount upfront to the seller

Challange for sale deed

The sale deed can be challenged only if there are solid legal grounds

If it has been executed by fraud, Coercion etc it can be challenged, but one needs to prove to the court the grounds on which it is challenged

Period of limitation to challenge the validity of sale deed

The trial court held that the period of limitation for filing the suit was 3 years from the date of execution of the sale deed dated 02/07/2009

Stamp duty for sale deed cancellation

You can claim the refund of stamp duty paid on such instrument if the same has not been executed

The government deducts 1% of the stamp duty, subject to a minimum of Rs 200 and a maximum of Rs 1000 of the stamp duty paid

Challange to registered will

A will although registered can be challenged in a court of law

A new will made, even if unregistered, if valid, will trump the registered will

If there are any suspicious facts, the court will scrutinize the will even if it is registered

Compiled by:-

Avinash Kulkarni

Chartered Engineer
Govt Regd Valuer
IBBI Regd Valuer




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