The sale deed is one of the most critical documents in the case of property ownership transfer. Like several other deed documents, such as lease deed, mortgage deed, gift deed, and exchange deed, the sale deed is a class of conveyance deed. When selling a property, the sale deed and other deed documents come in handy.
Even though the documents mentioned above can help an owner sell a property, the sale deed will get the name of the new owner registered in the papers. It is important to register the sale deed as per the Indian Registration Act. When drafting a sale deed format, one must consider several aspects. The following article provides detailed information on what is sale deed, what is the sale deed format is, and what is the sale deed meaning in Hindi and other languages.
What is a Sale Deed?
A sale deed is basically a legal document that enables the owner or seller of the property to transfer the rights of the property in the name of the buyer. Register the property at the local sub-registrar office once the seller draws the sale deed draft. In several cases, people often ask if it is mandatory to get a sale deed registered. Yes, it is very critical to get the sale deed registered. Until a sale deed is not registered, the buyer can not become the rightful owner of the property in the context of the law.
Understanding Sale Deed
The seller is the vendor in the sale deed, and the buyer is the vendee. The meaning of sale deed in Hindi is Bikrinama or Bainama paper. Similarly, the sale deed meaning in Marathi is Vikri Karara. Also, in some cases, people sometimes refer to the sale deed as the title deed. However, there is a difference between a sale deed and a title deed in a legal context.
Further, at the time of the creation of the sale deed, various components are to be taken care of. Along with the elements, the sale deed must include several clauses per the Transfer of Property Act.
A sale deed includes everything from the obligations and rights of both parties to the property's details. At the time of creating the sale deed, write the sale deed draft first. Afterwards, as per the requirement of the buyer and seller, a few clauses can be added or removed from the sale deed draft to finalize it. Once the sale deed draft is completed and signed by the parties, register the sale deed in the buyer's name upon its finalization.
At the time of registration of the sale deed, the buyer must pay the stamp duty required. Presently, the charges on stamp duty vary from 4 to 6 per cent on the property's sale value. Different states levy different amounts of stamp duty on properties.
Read more on what is a sale deed
Importance of a Sale Deed
Here are the benefits of a sale deed:
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Legal Validity: A sale deed is a legally secure document that determines the legal transfer of ownership of the property. Without a valid sale deed, the propertyтАЩs ownership might become an issue, which can lead to potential legal complications.
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Property Title: The sale deed comprises details about the title of the property, which will contain information about the current owner, previous owners and any legal obstruction. It guarantees more transparency and helps buyers make informed decisions.
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Ownership Proof: The sale deed serves as definite proof of ownership for the buyers. It acts as a record of the legal owner of the property and can be used as proof if some sort of dispute or legal matter arises.
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Avoiding Frauds: A correctly executed sale deed prevents fraudulent property transactions. It is proof that the rightful owner has bought the property, and the transaction has been made legally.
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Public Records Access: A sale deed is a part of the public records after its registration. This provides more transparency and security to the transaction.
Sample Sale Deed Format
Following is the standard sale deed format for property sale and purchase. 
A sample of sample deed
Download the sample sale deed format in word doc
You can download the complete word document of sale deed here
Components of a Sale Deed
When creating the sale deed draft, several essential components are included in the document. Following are the things that must be a part of the sale deed draft.
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Details of Both the Parties: Details in terms of the name of both parties, contact numbers, and age are recorded in the sale deed draft.
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Property Details: This section includes the property's details, such as its complete address, area of the property, including the dimensions, details of construction.
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Indemnity Clause: This particular clause is added to the property to ensure that the seller frees the buyers from all the previous taxes, loans, and charges related to the property. Also, the seller will pay up any mortgages and loans before finalizing the sale of the property.
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Payment Details: The price at which the owner will sell the said property should be specified in the sale deed. Along with the sale price of the property, the information related to the advance payment made by the buyer must be stated clearly in the sale deed. Information on the amount paid in instalments, date of each instalment should also be mentioned in the document.
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Mode of payment: The method of payment, i.e., how the amount will be made for the property purchase, must be recorded explicitly in the sale deed. The standard modes of payment, such as bank transfer, cheque, and cash, are clearly stated in the sale deed.
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Possession of Property: The sale deed will record the date the buyer will get possession of the property.
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Witnesses of the Property: The testimonium clause of the property includes that two witnesses are mandatory for attending the sale deed. At least one witness from both sides, i.e., buyer and seller, should sign the sale deed. The witness has to share their complete name, address, and age.
In addition, the seller of the property must also make some mandatory disclosures to the buyer in the sale deed. These disclosures include defects in the property related to material, declaration of disputes, if any, execution of conveyance of property correctly, and clearance of taxes and other charges related to the property, among others. Considering that the sale deed includes all the rights and the obligations of both parties in detail, its implementation reduces the risk for both parties.
Also read - What is the title deed of the property?
Difference Between Sale Deed and Sale Agreement
Following are the significant differences between the sale agreement and the sale deed.
| Sale Deed |
Sale Agreement |
| A sale deed is a document that refers to the immediate and complete sale of the property. |
A sale agreement is a document that indicates the sale of the property sometime in the future. |
| Under the sale deed, any risk borne or associated with the property is the responsibility of the buyer. |
Until the sale of the property, the responsibility of bearing the risk is taken care of by the seller. |
| A sale deed is a contract that has been executed. |
A sale agreement is a contract that is yet to be executed in the future. |
| It is mandatory to register a sale deed. Also, during the registration process, the buyer is liable to pay the stamp duty. |
Based on the rules of state related to the sale agreement, it may or may not be registered. |
| Under the sale deed, the rights and claims of the property are handed over to the new owner. |
The sale agreement only gives the person the right to purchase a property in the future. |
| The sale deed includes information related to both the parties involved, property and payment details, along with other information. |
The sale of the agreement only includes terms and conditions based on which the sale of the property will be executed. |
Getting a Certified Copy of Sale Deed
With the establishment that the sale deed document is of the utmost importance, the property owner should maintain the sale deed with complete care. However, if the property owner loses the sale deed at any given point in time, the owner must file a complaint at the nearest police station.
After filing the complaint (FIR) at the police station, a non-traceable certificate is issued to the property owner. Post the issuance of the non-traceable certificate, publish an advertisement in the newspaper about the loss of sale deed. The ad must include essential details. As the next step, you need to file an affidavit and the application to the sub-registrar office to get a certified copy of the sale deed.
The affidavit must be notarized and must have a copy of FIR, non-traceable certificate, advertisement, and details of the property attached to it. The affidavit must also have a signed undertaking attached, stating that the information shared is genuine. Also, a specific amount of fee has to be paid to obtain a certified copy of the sale deed. Once the process is complete, the certified copy of the sale deed will be issued after 2 to 4 weeks.
What is the Sale Deed Number?
The Sale Deed Number gets generated after the document registration and the payment of stamp duty and registration charges. You can find the sale deed number on the payment slip. Also, it is mentioned on the top right corner of every page of the entire sale deed document.
Format of the sale deed number: Document Number/Year/Sub Registrar Office initials
Sale Deed Documents Required for Property Registration
Here are a few major sale deed documents required for property registration.
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Sale Agreement
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Title Deed Draft
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Extract
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Sharing Agreement signed by the builder and property owner
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Allotment Letter from the Housing Board
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Power of Attorney, if any
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No-Objection Certificate, in case of property resale
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Blueprint of the authorised parties
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Completion Certificate
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Property Tax Receipts
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Encumbrance Certificate
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Stamp Duty Receipt
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Identity proof of all the parties and witnesses involved
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Possession Letter
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Property Papers from the bank, in case a loan has been taken against the property
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Occupancy Certificate
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Passport-size photographs
Cancellation of a Sale Deed - Is It Possible?
Cancellation of the sale deed is the revocation of purchase rights in the case of a property. However, it can be cancelled only under specific instances. To cancel a sale deed, one of the parties involved is not so satisfied with the deal agreed upon. The said party has to agree to the claim of dissatisfaction in front of the court of law. Also, there must be a genuine reason why one of the parties wants to cancel the sale deed. Once the reason is established, the petitioner must get an order from the civil court and present it to the registrar to get the sale deed cancelled. The sale deed can be cancelled under Sections 31 and 33 of the Special Relief Act, 1963. A sale deed can be cancelled for the following reasons:
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The deed was created under undue influence
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The deed is void if a minor has executed it
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Fraudulent activity in the creation of the deed or transfer and transaction
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Misinterpretation of facts to get a deed signed
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If the execution of the sale deed can cause harm or injury to the petitioner.
Things to Remember When Executing a Sale Deed
Here are a few major things to remember when executing a sale deed.
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The sale deed must include a clause that transfers ownership rights to the buyer once the purchase is complete.
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The title of the property must be free of all encumbrances.
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The registrarтАЩs office must verify the encumbrance status.
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All utility bills including water bills, electricity bills, property tax, etc. related to the property must be paid.
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There must be no further dues such as maintenance charges, pending.
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A sale deed must specify all terms and conditions under which the property has been sold.
Rules and Regulations: Sale Deed
Rules and regulations that need to be looked after while getting a sale deed.
Rights and obligations- Buyers
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Ownership: Once the sale deed is executed, a buyer gets legal ownership of the property.
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Possession: Possession can be taken as written in the sale deed.
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Use and transfer: A buyer has a right to transfer the property as per the laws and regulations.
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Stamp duty charges: The stamp duty and registration charges are paid on the basis of the sale deed.
Rights and obligations- Seller
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Sale price: A seller has to accept the sale price which is written in the sale deed.
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Provide accurate information: It is important to provide accurate information in the sale deed for the smooth transfer of property.
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Encumbrances: It is mandatory for a seller to inform about the legal disputes in a sale deed.
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Handover: Handover possession must be given to the buyer when the sale deed is being executed.
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