Sale Deed


A ‘Sale Deed’ is a legal document that records the transfer of ownership from the seller to the buyer. It is compulsory to be executed to complete the transaction at the time of purchasing a property. While preparing a Sale Deed, all the clauses of the Transfer of Property Act should be carefully examined and drafted to lessen the risks involved. The clauses should be drafted after understanding your requirements and liabilities. A sale deed indicates that the title of ownership has been transferred from the seller in favor of the buyer. So, a Sale Deed is essentially a document that there’s proof of such a transfer. Not only does it describe the property in detail, but it also outlines the rights and obligations of each party. 

Major Components of Sale Deed

Parties of the Sale Deed

The sale deed must begin with the details of the parties involved with the transaction. It should bear the name, age and addresses of the parties (buyer and seller) involved in the transaction, in order to make it valid. Both parties must sign and execute with bona fide intention.  

Description of the Property

The sale deed must have a proper description of the property. For instance, if you are buying a land, the sales deed should have the total plot area, survey number, details of the exact location and surroundings. The property schedule must be incorporated in the sale deed to define the accurate location of the property.

Sale Agreement

This document is drawn up when you pay a booking amount for the property. This agreement states that both seller as well as the buyer shall mutually settle the conditions and terms of the agreement so that it won’t affect the rights of either party. Usually, the sales agreement is drawn up before the sale deed.  

Clause of Sale Consideration

The amount agreed between the buyer and seller must be included in the sale consideration clause. This is the amount that the buyer agrees to pay to the seller during the sale deed execution. The sale amount should be stated clearly on the deed, as it was agreed upon.

Advance Payment & Payment Mode

If any amount paid in advance to the builder or seller for booking the flat, then this should be mentioned in the sale agreement and sale deed clearly. The remaining amount payable must also be written in the document. The mode by which you will be paying the amount in cheque, cash or DD must be mentioned along with the consent of the seller to accept the same.

Possession Delivery

A clause in the sale deed must bear the information that the possession of the property shall be transferred to the buyer by the seller after completion of the registration process. The sale deed should state the actual date of delivery of possession.

Passing of the Title

The sale deed should mention when the property title shall be passed to the buyer. The seller must be given a time limit for the title transfer. Once the title has been transferred, all related rights shall pass onto the buyer.

Default Clause

Sale agreement should ideally bear a clause that if there is any default on the part of the buyer or seller then the party defaulting shall have to pay a penalty to the non-offending party so that the execution of the sale deed is not affected.


The sale deed has been executed between the parties and it must be ratified by two witnesses from both sides. The witnesses shall have to provide their full addresses, signatures and names. The signatures of the buyer and seller must be present in every page.

Documents Required for Sale Deed Registration

  • Draft of Sale Deed
  • Power of Attorney, if any
  • Building Plan sanctioned by the Statutory Authority
  • Allotment Letter from the Builder/Co-Operative Society/Housing Board
  • All title documents of the property owner
  • A Copy of all registered previous agreements (in case of resale property)
  • Latest tax paid receipts
  • Latest electricity bill & receipt for the said property (in case of resale property)
  • NOC from Apartment Association (in case of resale property)