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What is a Sale Deed?

What is a Sale Deed?

What is a Sale Deed?

A Sale Deed, also known as a Conveyance Deed or a Transfer Deed, is a legal document used to transfer ownership of immovable property from one person or entity to another. It is a crucial document in real estate transactions, particularly when buying or selling property.

The Sale Deed serves as evidence of the transfer of ownership and establishes the buyer’s lawful title to the property. It outlines the terms and conditions of the sale, including the purchase price, details of the property, names of the buyer and seller, and any other relevant information related to the transaction.

Sale Deed Registration Charges

The registration charges for a Sale Deed can vary depending on the state or region where the property is located. Each jurisdiction may have its own schedule of registration fees and stamp duty rates. Additionally, the charges may also depend on factors such as the property value, property type (residential, commercial, agricultural, etc.), and the applicable local laws.

What is the process of executing a sale deed?

  1. Prepare the Sale Deed document with all necessary details.
  2. Review and verify the document for accuracy and compliance with applicable laws.
  3. Pay the required stamp duty, which is a tax based on the property value or transaction value.
  4. Sign the Sale Deed in the presence of witnesses, ensuring all parties involved sign on all pages.
  5. Register the Sale Deed at the local Sub-Registrar’s office, where the property is located.
  6. Submit the Sale Deed along with supporting documents, such as proof of identity, address, and property ownership.
  7. Undergo biometric verification and provide necessary documentation for identity confirmation.
  8. Complete the registration process, pay the registration fees, and receive an acknowledgment of registration.
  9. Obtain certified copies of the registered Sale Deed, which serve as legal evidence of ownership.
  10. Please note that the specific steps may vary based on the jurisdiction and local regulations. It is advisable to consult with the local Sub-Registrar’s office or a legal professional for accurate and up-to-date information regarding the execution process in your specific area.

Sale Deed Documents Required for Property Registration

Here are the key documents required for property registration through a Sale Deed, presented

  1. Sale Deed (original): The original Sale Deed document, which is the agreement between the buyer and the seller, is the primary document required for registration. It should be signed by the buyer and seller.
  2. Identity proof of the buyer and seller: Valid identification documents such as Aadhaar card, PAN card, passport, voter ID card, or driver’s license are required to establish the identities of the buyer and seller.
  • Address proof of the buyer and seller: Documents like Aadhaar card, utility bills, or bank statements showing the residential address of the buyer and seller are needed as proof of address.
  • PAN card or Form 60/61: The PAN card details of the buyer and seller need to be provided. In case the parties do not have a PAN card, Form 60/61, which is a declaration form, can be filled out instead.
  • Passport-sized photographs: Recent passport-sized photographs of the buyer and seller are required for the registration process.
  • Proof of ownership of the property: Documents proving the ownership of the property, such as the previous Sale Deed, title documents, or possession certificate, should be submitted.
  • Encumbrance Certificate: An Encumbrance Certificate is required to confirm that the property is free from any legal or financial liabilities or encumbrances.
  • Property tax receipts: Receipts or documents showing the payment of property taxes up to the date of the Sale Deed registration should be provided.
  • No Objection Certificate (NOC): If the property is part of a housing society or governed by any other authority, an NOC stating that there are no pending dues or objections against the property needs to be obtained.
  1. Building plan approval documents: In case the property is constructed, copies of the approved building plan, completion certificate, or occupancy certificate may be required to establish compliance with local building regulations.
  1. Power of Attorney: If the property is being sold by someone acting as a power of attorney holder on behalf of the owner, a notarized copy of the power of attorney document should be submitted.
  1. Additional documents: Depending on the specific requirements of the local jurisdiction, there may be additional documents requested, such as income proof, bank statements, or any other supporting documents related to the property or the transaction.

It is important to note that the exact document requirements can vary based on the jurisdiction and local regulations. It is advisable to consult with the local Sub-Registrar’s office or a legal professional to obtain accurate and up-to-date information regarding the required documents for Sale Deed registration in your specific area.

Difference Between Sale Deed and Sale Agreement

Sale DeedSale Agreement
A Sale Deed is a legally binding document that signifies the transfer of ownership rights from the seller to the buyer. It is a conclusive proof of the sale and purchase of the property.A Sale Agreement, also known as a Sales Contract or Agreement for Sale, is a preliminary agreement that outlines the terms and conditions of the property sale. It establishes the intent of the parties to enter into a future sale transaction.
A Sale Deed is a final and conclusive document that legally transfers the ownership of the property. It provides the buyer with full ownership rights and protection.A Sale Agreement is a preliminary document that sets the terms and conditions for the future sale. It does not transfer ownership but creates a legal obligation on both parties to complete the sale.
A Sale Deed must be registered with the appropriate government authority, such as the Sub-Registrar’s office, as per the applicable laws. Registration is necessary for the Sale Deed to be legally valid and to establish the buyer’s ownership rights.A Sale Agreement does not necessarily need to be registered, although it is advisable to do so to create a legally enforceable agreement. However, it does not transfer ownership rights until the Sale Deed is executed.
A Sale Deed is a legally enforceable document that provides legal protection to the buyer against any future claims or disputes related to the property.A Sale Agreement is enforceable to the extent of the agreed terms and conditions. If either party fails to fulfill their obligations as per the Sale Agreement, the other party can seek legal remedies or claim damages.
After breach of contract a lawsuit is filed to recover money in the form of damages, an injunction, or execution.Only a lawsuit for damages can be brought against a breach of the sale agreement.
The buyer is liable for paying stamp duty and registering the sale deed.According to state regulations, the selling agreement must be registered. In some states, registering must be done in order to vote, but not in others.
The buyer receives all of the property’s rights and claims as outlined in the sale deed.The buyer only have the right to acquire a property in the future under the terms of the sale agreement.
CS Deepa Sharma

Author is a associate member of the Institute of Company Secretaries of India (ICSI) and apart from that she holds LLB degree and Master in Commerce degree from Rajasthan University. She is having over 5 years of experience as a Practicing Company Secretary. She is well versed with all the matters related to Company Law and ROC matters, RERA , statutory reporting, Compliance Report and Corporate Governance. She is having good exposure in maintaining secretarial records as prescribed under Companies Act, 2013.

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