Legal means


The legal document which states out the terms and conditions of the sale is termed as the sale deed. This deed is executed by the buyer and the seller for the transferring of the ownership of a property. This Sale Deed outlines all of the important aspects regarding the price which has to be paid for all the necessities, such as the description of the property, how and when the owner would get transferred to the buyer, etc. The Sale Deed is important and an essential document as it refers to as the proof of ownership of the property.


Elements of Sale Deed

The following are the elements of sale deed:

The name and the address of the executing parties.

Description of the property along with the address and type of property.

Sale consideration comprised of the sale price which has been agreed between buyer and seller. The advance (if required) and the mode of payment has to be mentioned.

The sale deed must specify the time and hand over all the necessary documents which have to be provided to the buyer during the transfer of title of the property.

Indemnity means to check if the property is free from any charge or encumbrances. This has to be checked otherwise the seller would be made liable to indemnify the buyer against any losses. 

The property must be registered in the sub-registrar office and the buyer, seller and a witness have to be present in there. The Sale Deed is legally binding after the stamp of the office.



Benefits of Sale Deed

The following which has been listed below are the benefits of Sale Deed. These are: 


Protects Parties- The deed is responsible for the protection of the rights of both the buyer and the seller. A Sale deed which is specific and well-drafted would avoid ambiguity and minimise legal risks to both the parties.


Defines The Area- This advantage is specific to the buyer. The buyer has the advantage of having a well-defined description of the property over the paper, which is being purchased along with the square footage and the location.

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FAQ - Frequently asked questions

What is a Sale Deed?

A sale deed is a legally binding document specifically made to transfer the right, title and ownership of an immovable property from one person to another in exchange for a price. The sale deed is implemented by the Registration Act of India. A sale deed is considered to be valid only when it is signed by both the seller and the buyer and both the parties has to comply with the terms and conditions mentioned in the sale deed.

Does Sale Deed need to be registered?

A sale deed needs to be registered under The Registration Act, 1908 within four months from the date of execution. The registration is done by the Sub Registrar of Assurances of the jurisdiction, where the property is purchased

I want to sell my property. What are the documents a buyer would need from me?

A buyer could ask you for the original Sale Deed, Title Deed, relevant tax receipts and Encumbrance Certificate

Who needs to pay the stamp duty? The seller or the buyer?

Only the buyer pays the Stamp Duty.

Is it mandatory to register documents for the sale of the property?


Yes. You can get it done at the sub-registrar's office of the concerned district.

When is the sale of a residential property formalized?

The sale of a residential property is said to have been formalized if the seller has received the entire consideration amount, registration of the documents has been carried out and actual possession of the property has been granted to the buyer.