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Sale Deeds are important legal functionalities that come in form of documents and incorporated between the purchaser and seller. Sale Deeds are executed during property purchasing or real estate transactions. The sides participating in a sale deed are often termed as grantee or grantor pertaining to legal expressions. Sale Deeds include the ownership transference from the seller to the buyer (as per the pre-determined favorable clause) and the purchaser continues to be in the complete possession of the property.

Sale deeds are crucial during any property deals. It is like a right to agreement over the deals that are pre- determined and to be followed by either parties i.e. the buyer and seller. In order to process a sales deal, the documents required are proof of identity of both parties, ownership proof and other important documents. It margins the purchasing rights of the buyer and provides legal rights. Sale deeds are mandatory for establishing property claims. All pending documents such as taxes, electricity/water charges are to be included in the sales deed.

Sale Deed Can Be Made for:

  • Vehicle: Car & Bike
  • Lands: Agricultural, Commercial & Vastu
  • Property: Commercial & Residential
  • House
  • Business
  • Transfer Shares
  • Draft of Sale Deed/Title deed/Conveyance Deed
  • 7/12 extract or RTC (Records of Rights and Tenancy Corps) Khata Certificate and Extracts
  • Joint development agreement, GPA, & Sharing/supplementary Agreement, between land owner and builder
  • Power of Attorney if any
  • Building plan sanctioned by the Statutory Authority
  • Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.
  • If any loan on the property (Current or past) / Original Property Documents with Bank
  • Sale agreement with the Seller
  • All title documents of land owner
  • A Copy of all registered previous agreements (in case of resale property)
  • NOC from Apartment Association (in case of resale property)

In case of a change in ownership, the FBO is mandated to file an FSSAI Food License Modification too. Along with that, the FBO will need to follow the Company Registration procedure as well.

Types of sale deed

Points of differenceAgreement of saleSale deed
Sale deedIt implies the future transfer of the propertyIt signifies an immediate transfer of the property titles
Risk involvedRisk/liabilities remain with the seller until the property is transferred in futureRisk is immediately transferred to the new buyer
ContractIt is an executory contract. An executory agreement is one which has not been fully implementedIt is an executed contract
ViolationBreach of sale may result in a suit for damagesSale breach results in a legal complaint as well as monetary compensation for damages
RegistrationIt is not mandatory to register agreement of sale. However, norms may differ across StatesIt is mandatory to register a sale deed

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A sale deed is a document via which a seller transfers the rights and interest of a property to the buyer. As a result, the buyer obtains the ownership of the property. A sale deed includes the following details:

  • Name and address of the buyer and seller
  • Detailed description of the property
  • Total payment to be made, mode of payment, date when the payment is to be made
  • Date of handing over of property documents
  • Other terms and conditions of the sale

According to the law, the buyer needs to pay the stamp duty and registration charges. Anyway, any other arrangement related to the stamp duty and registration charge between buyer and seller can be incorporated in the Deed.

The advantages of sale deed are as follows-

1. It provides legal recognition of the transaction of the sale

2. It lays down the property description, the parties and their rights and obligation.

The registered sale deed are used as supporting evidence in case of legal dispute.

Sale deed is consisting of the transfer of property ownership from a vendor to a purchaser. This deed primarily makes the sale complete. In other terms, through this sale deed, the seller transfers the right of ownership to the buyer. After drafting of the documents, they are signed and registered and the ownership is completely transferred to the buyer as per the deal.

Once the document is registered it cant be cancelled. Only a court order can cancel it.

If it is impossible to trace a seller, his legal heirs will be issued a notice to execute the sale deed in their favour. Without a registered sale deed, you cannot acquire a marketable title over the property.

Bank provides loans based on original documents. It is impossible to acquire loans without these documents. Bank will not provide a home loan against a photocopy of the sale deed. If you lose the sale deed, then you can issue a certified copy issued by the jurisdictional sub registrar. Some banks want to scrutinize the FIR copy, the certificate, which is non traceable, the affidavit presented to the sub registrar. Thus, it is advised that all the documents must be preserved for acquiring a home loan.

A sale deed is usually a public document. Thus, a copy of the deed can be obtained by anybody. In order to obtain a copy, one has to know the significant details like property schedule information, name of the owner of the property, document number. You can get these copies issued by availing online option in states such as Tamil Nadu and Andhra Pradesh.