Components and Significance of Sale Deed

Components and Significance of Sale Deed

The sale deed is signed after the client and dealer have consented to the terms and conditions. Grasp more about sales deeds.

The sale deed is an essential document that helps with the successful registration of a home. It is a legal agreement used in real estate deals as evidence of the sale and transfer of property possession from the dealer to the client. It is also known as a conveyance deed.

An Immovable property’s ownership rights are lawfully handed over from one individual to another by a written deed known as a sale deed, often implied as the final or conveyance deed, in exchange for a remuneration fee or purchase price. It gets structured for the purchase or sale of land, as well as any building that is done on it.

The person who transfers possession of the property piece is the Transferor or the Seller. And the person to whom it gets transferred is referred to as the Transferee or the Buyer.

The signed agreement outlines the parties engaged, the purchase price agreed upon for the property, the acceptable method and mode of payment, and the date on which the property and its original paperwork will be transferred to the purchaser. It also acts as evidence that proves that the buyer is now the new lawful owner of the property.

What is a Sale Deed?

A document that is recognised legally and allows the owner or the Seller of the property to transfer the ownership of the property to the Buyer is known as a sale deed. In many instances, people usually ask if it is necessary to register the sale deed. Under the law, unless the sale deed is registered, the Buyer will not be considered the rightful owner of the said property.

A sale deed includes everything from the obligations and rights of the Buyer and Seller to the property’s details. It is good to write a sale deed draft first at the time of making the sale deed, and it aids in removing a few clauses as per the needs of the Buyer and Seller from the sale deed draft before finalising it. After the sale deed draft is completed and signed by both parties, it gets registered in the Buyer’s name upon its finalisation.

Difference Between a Sale Deed and a Sale Agreement

Sale agreements and sale deeds are two different documents. A sale deed is a legal document that proves that the Seller transfers absolute property ownership to the purchaser. This document gives the property’s new owner all the rights and interests.

A contract that promises the future transfer of any property and its ownership is a sale agreement. It specifies all the terms and conditions under which the property transfer will be done.

What are Some Critical Components of a Sale Deed?

Essential components must be included in the document when creating a sale deed draft, some of which include:

Details of the Parties: A Sale deed draft includes the Buyer and Seller’s name, contact details, and age.

The Clause of Indemnity: This particular clause is added to the deed to ensure that the Buyer is exempted from all the pending taxes, loans, and charges related to the property. Also, before finalising the sale of the property, the Seller will pay up any loans and mortgages of the said property.

Details of Payment: The price at which the owner sells the property should get stated in the sale deed. The information relating to the advance payment made by the buyers should be mentioned in the sale deed, along with the price at which the property is sold. Also, the information regarding the amount paid in instalments and the date of each instalment paid should be specified in the document.

Method of payment: The sale deed must clearly state the payment method or how the money will get paid for the property acquisition. The sale deed clarifies the accepted forms of payment, including cash, check, and bank transfer.

Possession of Property: In the sale deed, the date at which the Buyer will take possession of the property is specified.

Witnesses for the Property: According to the clause of the property’s testimonial, two witnesses must be present to attend the sale deed. The sale deed should be witnessed by at least one person from each Party, i.e., Buyer and Seller. The witness is required to provide their full name, residential address, and age.

A seller must also disclose mandatory information to the Buyer in the sale deed. Among these disclosures are defects in the property related to material, declarations of disagreements, if any, and completion of the conveyance of property correctly.

Because the sale deed outlines all the rights and obligations of both parties in detail, its implementation reduces both parties’ risk.

What is the process for drafting a sale deed?

Deeds are prepared on non-judicial stamp paper. In your region, you’ll need stamp paper valued at a certain amount. Since each state amended the Stamp Act for its purposes, it will differ from state to state.

The certificate will get signed before two witnesses in the sub-registrar’s office. Ensure all property taxes have been paid before executing the deed. Otherwise, you will pay a fine.

The Buyer is expected to pay stamp duty and registration fees, usually shared with the Seller. Original sales documents must get submitted within four months after registration.

Importance of Sale Deed

Once the sales deed is completed and registered, the Buyer must present it to the lender if the property was purchased through a mortgage. To initiate loan payments, the borrower must provide the lender with several property-related documents, including the original title deed.

The lender holds the title deed until the loan is fully repaid. By law, the lender must return the title deed to the borrower within 15 days after the mortgage is paid in full. Things to consider before entering into a sales contract

Before signing the purchase contract, the Buyer should ensure that the property title is not encumbered. Confirmation of the burden situation by the registry office is mandatory for the Buyer who purchases real estate.

After confirming that the property is unhindered, the Buyer must ensure all statutory payments, such as water/electricity bills, property taxes, maintenance fees, etc. You should also check for no permissions.

Real estate buyers should know that the title deed is one of the most important documents proving ownership after purchase. Therefore, caution should get exercised in obtaining this document.


The sale deed is a crucial document in case of ownership transfer. Leases, mortgages, gift and exchange deeds, and deeds of sale are classes of title deeds, as are some other documents. Title deeds and other deed documents are useful when selling real estate.

In summary, a real estate sale deed is one of the most important and valuable legal documents that must get duly signed by all parties to complete the sale transaction. A document transfers ownership from a seller to a buyer and serves as a formal record of the current transaction. However, the intent and purpose of a deed of sale are to change the legal ownership of property by transferring it from one person to another.


What are real estate deeds used for?

A title(sale) deed is the primary legal document used as proof of real estate transactions, and it represents the transfer of title, title and title from the Seller to the Buyer.

What happens after the sale deed is concluded?

Once the sales deed is done, the ownership of the property will be transferred to the Buyer, and the Buyer acquires absolute title to the property and takes ownership.

Is a contract of sale the same as a sales deed?

A property sales deed differs from a purchase and sale agreement for the same property.

Is it required to register a sales deed?

A title(sale) deed is a legal document that allows the owner or Seller of real estate to transfer title to real estate on behalf of the Buyer. Once the Seller has drafted the sale and purchase agreement, register the property with the local sub-registration office.