Sale Deed

A sale deed is a legal document for sale and transfer of ownership of property in favor of the buyer.

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A sale deed is a legal document for sale and transfer of ownership of property in favour of the buyer. It is executed after the execution of the sale agreement and after compliance of various terms and conditions outlined in the sale agreement as agreed between the parties to an agreement. The sale deed is the primary document in which the seller transfers his right to the purchaser, who then acquires the ownership of the property. It is also referred to as the conveyance deed.

Parties of the Sale Deed

Sale deed must be initiated with the details of the parties to an agreement. It should include the name, age and addresses of both parties involved in the transaction.It is necessary for both the parties to sign and execute the deed.

Description of Property

Sale deed must include the description of the property that the buyer intends to buy. It should include the total plot area, identification number, details of construction, the surroundings and exact location. The schedule must be included in the deed to define the precise location of the property.

Clause of Consideration

The sale consideration clause must include the amount agreed between the buyer and seller. The sale amount should be mentioned clearly on the deed. This is the amount the buyer agrees to pay to the seller at the time of execution of the sale deed.

Mode of Payment

The sale deed must include the advance amount paid by the buyer, in case of any, at the time of booking. It should also include the remaining amount payable, i.e. by cash, cheque or DD along with the consent of seller to accept the same.

Title of the Property

The seller shall pass the title of the property to the buyer within a time limit, which should be mentioned in the sale deed to transfer the title of the property. Once the title has been transferred, all rights of the buyer shall be transferred to the buyer.


The clause of transferring the possession of the property to the buyer after the completion of the registration process should be mentioned in the Sale Deed.

Indemnity Clause

The indemnity clause is applicable in case of resale of the property. The seller should clear the debts of all statutory charges such as property tax, electricity bill, water bills, society charges and maintenance charges including all other dues before the execution of sale deed. Moreover, if a home loan is taken by the original buyer to purchase the property, the seller must repay the loan. It is necessary to scrutinize the status of encumbrance from the registrar or sub-registrar's office.

Clause of Default

The clause of default plays a vital role. In case of any default on behalf of buyer or seller, then the party in default shall bear the penalty to the non-offending party, in order to protect the deed executed.

After the drafting of Sale deed, it must be ratified by two witnesses from both sides. The witnesses shall provide their name, address and signature at the time of execution of Sale Deed. The buyer and seller must signon every single page of the deed.

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