KEY TAKEAWAYS:

•  A Sale Deed as shown in the draft below, is executed for the purchase of an immovable property by a Buyer from the Seller.
• A consideration amount is paid by the buyer to the seller for the purchase of such immovable property.
•  It forms an evidentiary value for transfer in the Court of Law.
• Registration of such a Sale Deed is mandatory for its legal effectiveness.
•  Stamp Duty and Registration Fees are to be paid by the buyer in the Registrar’s Office.
•    A Sale Deed must be prepared without any conditional clauses to its transfer.
•   A Sale Deed is the only document accepted in the Court of Law for proving one’s ownership over a particular property.

DEED OF CONVEYANCE

THIS DEED OF CONVEYANCE is made on the _date_th day of __month__, ___year_in_words___ (year).

BETWEEN

1] _____Name of the Vendor_____ son/ daughter of ___name of father____, by creed- __religion___, by occupation - _______, by Nationality- _______, residing at- _____residential address____, hereinafter called and referred to as the VENDOR (which expression shall unless excluded by or repugnant to the subject or context be deemed to mean and include their respective heirs, successors, executors, administrators, legal representatives and assignees) of the party to the FIRST PART. PAN No. _____________.

AND

1] _____Name of the Purchaser___, son/ daughter of ____name of father____, by creed- ___religion___, by occupation- ________, by Nationality- ________, residing at- _____residential address______, hereinafter called and referred to as the PURCHASER (which expression shall unless excluded by or repugnant to the subject or context be deemed to mean and include their respective heirs, successors, executors, administrators, legal representatives and assignees) of the party to the SECOND PART. PAN No. _____________.

WHEREAS one ___name of the first owner of the land as per the records____ was the absolute owner of ALL THAT piece and parcel of land comprised in ________________________Description or Address of the property (consisting of R.S. Dag No., R.S. Khatian No., C.S. Dag No., Mouza, J.L., Police Station, District, State__________ along with other landed properties, by virtue of ___deed of conveyance if any____ registered in the office of ____________, recorded in book _____, volume no. ________, pages from _____to ______.

AND WHEREAS while in possession and occupation over the same, the said land has recorded in the name of said ____(name of the previous owner)____ as the ___(holding position)____ of ______(description of the land)_____.

AND WHEREAS _________(history of the land is to be given in paragraphs i.e. if any other transfer took place in the middle with its recorded numbers and where it is registered.)______

AND WHEREAS since then the present vendor(s) herein, thus became the absolute owner(s) of the said land and mutated their name in the records of the _________(concerned municipal corporation)___ in respect of the said land, under Assessee No. ____________, as the owner of Premises no. ___(description of property to be sold)_________ described in the SCHEDULE – “A” hereunder written.

AND WHEREAS by virtue of this agreement, the purchasers herein knowing the same agreed to purchase the said ______(description of the property)_______ at a valuable consideration money of Rs.___(amount.)__ (___amount in words__) after examination of deeds and documents and construction work of the said building. And the Vendors herein agreed to sell the ____(property)____, free from all encumbrances.

AND WHEREAS on __(date)__, the Vendors herein have executed an Agreement for Sale in favour of the purchasers herein.

AND WHEREAS as per the terms and conditions of the said Agreement of Sale, the Purchaser(s) herein inspected the said property, agreed to pay the balance consideration money to the________ and now all the parties herein agreed to execute and register a Deed of Conveyance for complete sale and purchase of the said property ____(description of the property)_______ fully mentioned in the SCHEDULE – “B” hereunder written, free from all encumbrances. 

NOW THIS INDENTURE WITNESSETH as follows-

In pursuance of said agreement and in consideration of the said sum of Rs._______/- (___amount in words____) paid by the purchasers to the vendors herein (the receipt whereof the Vendor does hereby admit and acknowledge to have received as per memo below) and the Vendor(s) herein do hereby and hereunder grant convey, sell, transfer, assign and assure unto and to use of the Purchasers ALL THAT piece and parcel of one self contained _____description of the property___) , fully mentioned in the SCHEDULE – “B” hereunder written out of SCHEDULE – “A” together with all kinds of easement rights, interest, possession, liberties, privileges, appendages, appurtenances whatsoever belonging to or in any way appertaining to the same or any part thereof and all estate right, title, interest claim and demand whatsoever both at law and in equity of the Vendor(s) upon the said property and all deeds writings, instruments and evidences of title, which now is or are in the vendor(s) to custody power and possession of the TO HAVE AND TO HOLD in the SCHEDULE – “B” ____(property allotted)___ for use and occupation by the Purchasers absolutely and forever and the Vendors do hereby covenant with the Purchasers that notwithstanding any acts, deeds or things done by the Vendor(s) executed or committed or suffered to the contrary, the Vendor have got right, full possession and absolute authority to grant sell, transfer, convey, assign and assure the said property and the appertaining right thereby sold, transferred and every part thereof, free from all encumbrances, attachments, liens, etc. and the Purchaser(s) shall at all times hereafter peaceably and quietly hold enjoy and possess the said property in Khas or through tenants without any claim or demand whatsoever from the Vendor(s) or any party claiming through or under them.

AND FURTHER that the Vendor(s) covenant with the Purchaser(s) to save them harmless from and keep them indemnified against all encumbrances charges and claims whatsoever and the Vendor further covenant that they shall at the request and cost of the Purchaser(s) do and execute or cause to be done or executed all such lawful acts, deeds, and things as may be necessary for further and more perfectly conveying of the said property and every part thereof according to true intent and meanings of this Deed.

AND IT IS HEREBY FURTHER AGREED AND DECLARED BY THE PARTIES AS FOLLOWS:-

1] That the purchasers shall be liable to pay directs to the authorities or contribute in proportionate accordingly to area hereby conveyed towards ____(concerned Municipal Corporation)____ taxes and other outgoings payable in respect of the property.

2] That the Purchaser(s) shall have full and absolute proprietary rights as the Vendor(s) derives from the title save and except that of demolishing any structures or committing act or waste in respect of the said property in SCHEDULE – “B” in any manner whatsoever so as to effect the Vendor(s).

3] That the Purchaser(s)’ undivided interest in the land as more fully described in the SCHEDULE – “A” hereunder written shall remain for all times .

            SCHEDULE – “A” REFERRED TO ABOVE                            (Entire Land)

ALL THAT piece and parcel of land measuring more or less __________________( description of the land)_____________________, together with all sorts of easement rights over the passage, which is butted and bounded by:- 

        On the North :

        On the South :

        On the East :

        On the West :

                  SCHEDULE – “B” REFERRED TO ABOVE

            (Description of the property hereby sold and

 transferred)

ALL THAT piece and parcel __________(Description of the Property)_______ have been erected and completed as per said sanctioned building plan and as per specification approved by the ____(concerned Municipal Corporation)_________.

IN WITNESS WHEREOF the Parties hereto have set and subscribe their respective hands and seals on the day, month and year first above, written.

SIGNED SEALED & DELIVERED

In presence of Witnesses

1]

                                     V E N D O R (S)

2]

3]

                                             P U R C H A S E R (S)

MEMO OF CONSIDERATION

RECEIVED of and from the within named Purchaser(s) the within mentioned sum of Rs._______________/- ____( amount in words)________ as full consideration money as per memo below:- 

CHEQUE NO.        DATE    BANK AND BRANCH    AMOUNT (Rs.)

                            T O T A L :    

WITNESSES:

1]

2]

SALE  DEED

INTRODUCTION:

Sale Deed or the Deed of Conveyance is one of the most important legal documents that is required to complete the transaction of buying or selling an immovable property. It is to be executed between the Seller and the Buyer at the time of purchasing the immovable property. The Seller is also known as the Transferor/ Vendor/ Grantor while on the other hand, the Buyer of the property is also known as the Transferee/ Purchaser/ Grantee in legal parlance. A Sale Deed is defined in The Transfer of Property Act, of 1882. According to section 54 of the Act, “sale” is defined as a transfer of ownership between the parties involved in exchange for a consideration. Such consideration may include a price paid or promised or it is part-paid and part-promised. It consists of a contract for the sale of an immovable property that a sale of such property shall take place on terms settled between the parties i.e. generally an Agreement for Sale.

In the case of GHANSHYAM V. YOGENDRA RATHI (2023)7 SCC 361, a question was raised regarding whether a power of attorney, a will, an agreement to sale coupled with a possession memo, and the receipt of payment of sale consideration would confer any title upon the plaintiff or respondent. The Apex court held that such documents mentioned hereinabove cannot be treated as a legal document that proves the possession of title to a particular property. It is only the Sale Deed that comes into play while deciding the title or owner of the property.

According to section 55 of The Transfer of Property Act, a duty is imposed on the Seller that he has to reveal or disclose all the material defects with respect to both the property and the Seller’s title to the purchaser before any agreement for sale is made. This clause is generally added to ensure that the Seller is aware of the said defect and then enters into an agreement for sale and that nothing that harms the interest of the Buyer is kept hidden from him. 

PURPOSE OF A SALE DEED:

A Sale Deed indicates that the title of ownership has been transferred from the Seller in favour of the Buyer. In other words, it is proof that the ownership of an immovable property has been transferred from the Seller to the Buyer. Therefore, a Sale Deed is essentially a document that provides an evidentiary value to the transfer of title/ ownership of the property from the vendor to the purchaser in lieu of an amount for consideration is paid. Not only does it describe the property to be transferred in detail, but also outlines the rights and obligations of each party to the agreement. The parties involved in such transfer is any competent person/persons or business that is permitted by law to participate in the transfer of any property. The Sale Deed is to be executed on a non-judicial stamp paper of a value that is prescribed by the state government concerned. 

However for a Sale Deed to be legally enforceable, it has to be duly registered under the sub-registrar’s office according to section 17 of the Indian Registration Act. A registered document serves as an evidentiary value in the court of law in case of any dispute that arises at a later time. Several steps need to be followed before the final Registration of the Sale Deed to ensure a smooth transaction or transfer of the property. Firstly, there has to be a negotiation of sale price where both the Buyer and the Seller have to reach a common price for compensation to be paid by the Buyer to the Seller for buying the property. An advance amount is to be paid to the Seller by the Buyer which is generally 10% of the selling price of the property. Then both the parties enter into an Agreement for Sale where the terms and conditions in part of both the Seller and the Buyer are to be revised and duly signed and thus agreed by both the parties. The payment schedule has to be mentioned in both the agreement for the sale and the Sale Deed along with the date, mode of payment, and the amount paid to the Seller by the Buyer for the purchase of the property which has to be duly acknowledged by the Seller himself in the clauses of the Sale Deed. 

Then with the Sale Deed and its Registration at the concerned Registrar’s office on payment of consideration, the ownership right of the said immovable property gets transferred from the previous owner i.e. the Seller to the Buyer. The rights that are transferred along with the ownership right through the Sale Deed are the Right to use, right to lease, right to mortgage, and right to sell the said immovable property. 

ESSENTIAL ELEMENTS OF A SALE DEED:

For a Sale Deed to be legally bound, it should contain some essential elements/ clauses in its agreement. Such essential elements contained in a Sale Deed are as follows:

1.    DETAILS OF PARTIES: In this portion, the name of the Seller and the Buyer is mentioned along with their father’s name, nationality, creed, and residential address. It is also mentioned herein that not only the parties mentioned are bound to the agreement but also their legal heirs or any person related to them.

2.    SCHEDULE OF PROPERTY: In this part of the clause, the location, address, and description along with the area and dimension of the property to be transferred is mentioned. In subsequent paragraphs, the history related to the property is mentioned descriptively. 

3.    PAYMENT DETAILS: The total sale price to be paid as a mode of consideration for the purchase of the said property is written in the Sale Deed. The advance paid is compulsory to be mentioned with the date, the mode on which the payment is made, and the amount paid.

4.    HANDING OVER OF ORIGINAL PROPERTY DOCUMENTS: It is mandatory to hand over all the previous original property documents along with the new Sale Deed to the Buyer after the Deed is registered at a competent registrar’s office. This is also to be made a clause mentioned in the Sale Deed so that it comes as an evidentiary value at a later time proving that the Seller has handed over all the original property documents to the Seller at the time of transfer. 

5.    HANDING OVER OF POSSESSION: The date on which the possession of the property will be handed over to the Buyer is mandatory to mention in the Sale Deed. Along with the date it is also mentioned if any consequences that the Seller will face if he fails to do so and the whole consideration amount is already being paid by the Buyer and the Registration of the Deed is done.

6.    NO ENCUMBRANCES AND LIENS: This statement is mentioned in the Sale Deed while speaking about the property to be transferred. This statement is basically made by the Seller ensuring that there is no loan upon the property. If there was any kind of home loan going on, he has already paid off the loan amount, or in other words, there are no dues of loan or property tax or maintenance.

7.    INDEMNITY CLAUSE FOR PARTIES: There has to be an indemnity clause in the Sale Deed mentioning that if there is some damage caused to the Buyer because of the Seller’s doing, then the Seller will pay the Buyer the amount for recovering from such damages if any.

8.    WITNESSES OF THE PROPERTY: At the end of the Deed, there has to be a testimonial clause with the signature of at least two witnesses. Out of the two witnesses, one can be a witness on behalf of the Seller and the other on behalf of the Buyer. 

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 obligations of both parties in detail, its implementation reduces the risk for both parties.

PRECAUTIONS TO BE TAKEN:

There are a few precautions that should be checked before entering into any kind of Deed of Conveyance or the Agreement for Sale. Such precautions are as follows:

1.    ENSURE CLEAR TITLE: The Buyer has to perform a thorough check regarding the title of the property for a minimum of 30 years. The chain of title is to be acquired by the Buyer before entering into the Deed to be completely sure of it not being a disputed property or a property stuck in litigation.

2.    NO ENCUMBRANCES AND LIENS: The Buyer has to ensure from the Seller that there is no loan upon the property. If there was any kind of home loan going on, he has already paid off the loan amount, or in other words, there are no dues of loan or property tax or maintenance.

3.    CHECK FOR AMBIGUITIES IN THE SALE DEED: The Sale Deed is to be thoroughly read by the Buyer before entering into the agreement. There should be no conditional clause in the agreement that will be against the Buyer at a later time in the future.

EXECUTION OF SALE DEED:

For proper and legal execution of a Sale Deed, the following steps need to be followed:

1.    DRAFT SALE DEED: A well-drafted Sale Deed by a legal professional is the basis of the procedure. The Sale Deed should contain all the important clauses in it considering the interest of both the Buyer and the Seller is kept intact. Both parties shall agree on the terms and conditions mentioned in the clauses which they will be bound by after its execution. Such a Deed should be executed on a non-judicial stamp paper of a value that is prescribed by the state government concerned. 

2.    STAMP DUTY: A Stamp Duty is to be paid by the Buyer to the government while purchasing any immovable property. The stamp duty is generally kept at 4 to 10% of the market value of the property though such value may differ from state to state.

3.    SIGNATURES: The Sale Deed shall be signed and executed by the Buyer and the Seller. Not only the signatures but also the impression of every finger is required of both the Seller and the Buyer. The signatures and finger impressions of witnesses are also mandatory. There have to be at least two witnesses in the Deed, one on behalf of the Seller and another on behalf of the Buyer.

4.    REGISTRATION: The final step required for the execution of a Sale Deed is its Registration at the office of the sub-registrar. Registration of the Deed gives it the legal validity for its execution and without it the said Deed is not enforceable in the eyes of law. Therefore it forms a very important step in the process of execution of the Sale Deed. The Sale Deed is to be registered within four months from the date of execution of the Deed. The Stamp Duty and the Registration charge is to be borne by the Buyer.

DOCUMENTS REQUIRED FOR REGISTRATION:

Following are the documents that are mandatorily required for the Registration of a Sale Deed.

1.    Draft of Sale Deed.

2.    Power of Attorney in case the Buyer or the Seller is not present during the time of Registration.

3.    Building plan sanctioned by the Statutory Authority.

4.    Allotment letter from the Builder/ Co-operative Society/ Housing Board.

5.    All title documents of the property owner.

6.    A copy of all registered previous agreements in case of any resale of the property.

7.    Latest tax paid receipts.

8.    Latest electricity bill and receipt for the said property in case of resale of the property.

9.    NOC from Apartment Association in case of resale of property.

CANCELLATION OF SALE DEED:

The cancellation of a Sale Deed is equivalent to the loss of the right to purchase a property. A Sale Deed can be cancelled under the following grounds:

1.    The Deed was created under undue influence.

2.    The Deed becomes void if executed by a minor.

3.    Fraudulent activity in the creation of the Deed or in the mode of transaction of the consideration.

4.    If the Seller of the property is not the actual owner or is an heir apparent to the property.

5.    Misinterpretation of facts to get a Deed signed.