SALES DEED PROJECT

TOPIC:

SALE DEED IN INDIA

MADE BY: PRITHVI YADAV

COURSE: B.A.LL.B(H) 2015-2020
ENROLLEMENT NUMBER: A11911115068
SECTION: F
SEMESTER: 8
ACKNOWLEDGEMENT

I would like to sincerely thank my sales deed teacher for

giving me this project on the “SALE DEED IN INDIA”
which has widened my knowledge on the Law related to
SALE DEED IN INDIA. Her guidance and support has
been instrumental in the completion of this project .
Thank you, mam, for your consistent support.
I’d also like to thank all the authors, writers and
columnists whose ideas and works have been made use
of in the completion of this project.
INTRODUCTION
A sale deed is a legal instrument which is executed between the seller and the purchaser
which evidences the sale and transfer of ownership of an immovable property. A sale deed is
supposed to be compulsorily registered under Section 17 the Registration Act, 1908 which
mandates that all immovable property whose value is more than Rs. 100 has to be
compulsorily registered. The sale of an immovable property is defined under Section 54 of
the Transfer of Property Act, 1882 as “Sale is a transfer of ownership in exchange for a price
paid or promised or part paid and part promised”.

WHAT IS A SALE DEED

A sale deed is one of the most common documents which is employed for transferring
ownership of immovable property from one person to another. It is an important document
which contains the details of the manner in which the seller acquired the property, for what
consideration the seller is selling the property to the buyer and all other assurances which the
seller gives to the buyer regarding encumbrances and liabilities on the property. It acts as an
essential document especially for the purchaser as it establishes the proof of ownership of the
property. A sale deed needs to be compulsorily registered in the sub registrar’s office.

Difference between Sale Agreement and Sale Deed

A sale agreement is an agreement in which the terms and conditions of a prospective contract
of sale are listed along with the proposed consideration and details of payment. A deed of
sale comes after the sale agreement and is a document which transfers all rights associated
with the property from one person to another.
An agreement to sell merely lays down the future intention of parties to sell the property
whereas a sale deed implies immediate transfer of the property from one person to another.
Liabilities and risks associated with the property are also transferred immediately in case of a
sale deed, whereas in a sale agreement, the risks related to the property remain with the seller
till the sale deed is executed.
There is not compulsory requirement to register a sale agreement, but it is mandatory to
register a sale deed.

Steps in Sale Deed Registration

Sale deed of land is prepared by property documentation lawyers on behalf of their clients
in accordance with the sale agreement.
The stamp paper on which the sale deed is registered, is purchased according to the
applicable rate that varies in every state on the basis of location of the property and gender of
the buyer.
The sale deed must mention the date on which it is registered in office of the Sub-Registrar.
The registration fee fixed by the government must be paid. Registration fee is dependent
on the amount that the buyer is paying for the property.
The buyer and seller have to be physically present along with two witnesses in office of the
Sub-Registrar on the date of registration.
If the buyer or seller are unable to appear before the Sub-Registrar, a Power of Attorney
can be made to allow another person to appear on their behalf.
The documents required for sale deed registration include to two passport size photographs
copy of Aadhar card as a form of identification of buyer and seller and ID proof of the
witnesses.
The registered sale deed can be collected from office of the Sub-Registrar after one week is
completed from the date of sale deed registration.

Grounds for Cancellation of Sale Deed

Cancellation of sale deed is dealt under Section 31- 33 of the Specific Relief Act, 1963 which
lays down the provisions for cancellation of instruments. Cancellation of sale deed by court
may happen in the following cases:
1) The sale deed is voidable and person in whose name it is drawn, seeks to cancel it.
2) Execution of such sale deed may cause harm or loss to the persons involved.
Upon cancellation of sale deed, the court sends a copy of its decree to the officer in whose
office the sale deed was registered. Further, upon cancellation of sale deed by court, the
person who seek cancellation of sale deed must be may require the party to whom such relief
has been granted, to restore, so far as may be, any benefit which he may have received from
the other party.
artial cancellation of the sale deed is also possible under Section 32 of the Specific Relief Act
but only in situations in which the rights and obligations under the instrument are distinct and
separable.

Important Clauses in a Sale Deed

It is necessary for every sale deed to contain the following clauses for disputes to not arise
with respect to its registration at a later point in time. The parties must be sufficiently
described with the name of the parties, father’s name and address. The date and place of
execution of the sale deed should be mentioned. The property should be sufficiently
described and the sale consideration should be explicitly mentioned. The sale deed should
also contain a provision on indemnity and an explicit mention of the passing of the title from
the seller to the buyer.

BIBLIOGRAPHY
 RK Sinha, Transfer of Property Act 1882, 2012, Central Law Agency, Fourteenth
edition
 Sir Dinshaw Mulla, The Transfer of Property Act ,2013,11th Edition

WEB REFERENCES
 http://www.vuhelp.net/law-transfer-property/
 http://www.advocatekhoj.com/library/bareacts/transferofproperty
 www.indiakanoon.org