All You Need To Know About Sale Deed

All You Need To Know About Sale Deed

All You Need To Know About Sale Deed

There are multiple documents required to prove the ownership of the property while selling and buying the property. Sale deed is one of the crucial evidence that proves the identity of the actual owner of the property along with other important details that is of significance for ensuring the deal is legal and the property is being sold after following all legal obligations. Here are few facts and details that you need to know before plunging into the real estate market for an investment:

Understanding the sale deed

A sale deed or conveyance deed is a document which is drafted at the time of sale of the property. The signing of deed signifies that the process of sale has been completed. The seller transfers the right of  ownership to the buyer through sale deed. As soon as the document is signed, the buyer becomes the complete owner of the property. Usually, a sale deed is executed only when both sellers and buyers are fully satisfied and are ready to comply with the terms and conditions as mentioned in sale agreement.

What does sale deed imply?

The sale deed document is a valid proof of ownership of the immovable property with all relevant information about the buyer.

The sale deed is drafted on a non-judicial stamp paper of value as set by the state government in which the property transaction is taking place. Every state has predetermined value of stamp paper that are used for drafting immovable property.

Also, any outstanding amount can be paid through a challan or stamping for legalising the sale deed. The deed contains the following information: 

 Type of deed

Whether it is a sale deed, lease deed, mortgage deed- the document would say 'Deed of Sale' if it is a sale deed.

Details of both the parties

The deed should contain full name, address, age and residence address of both the parties. The deed is condemned as invalid if this information is found to be missing.

Property details

The deed should contain information and details about the property involved and undergoing sale. The document should have the complete address, number of rooms and so on, and plot area, construction area, any additions to it, number of balconies.


This is a part  of document wherein both the parties are agreeing to the transaction and giving details about the compensation required to be paid, advance component, date of such transaction, agreed and signed by involved parties. It is a legally binding document therefore mode of payment and date is mentioned to prevent any disagreements at a later stage.

Transfer of title

The signing of the sale deed implies transferring the title of the property to the buyer by the seller which cannot be revoked. It also means that they have adhered to the clauses, compensation agreed upon and paid in full. The buyer holds the legal rights of the property.

Registration of the deed

A sale deed is registered in accordance with the Registration Act, 1908. Both the parties have to be present in person along with two witnesses with all the relevant documents in the sub-registrar's office to sign the sale deed and close the deal.

Proof of registration

The certified copy of the registered deed with the name of the buyer can be obtained from the registrar's office.

Also note the following:

  • The original documents have to be produced within four months from the date of registration of the deed.
  • It is the buyer who pays the stamp duty and the registration charges.
  • The seller needs to clear all payments related to the property such as property tax, cess, water and electricity charges before the sale deed is signed.
Last Updated: Tue Nov 07 2017

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