Legal Guide

Is it possible to sell a property without a Sale Deed?

by Bhavya Choudhary · 3 min read

selling a property without the original Sale Deed

Introduction 

A Sale Deed is a legally crucial document that is required to transfer property rights from the legal owner of the property to the purchaser against a desired sum of money. 

The law provisions and rules state that property transactions require certain certificates and documents which are registered and should adhere to the state acts and laws, and selling a property without the original Sale Deed is not possible as per the law.

Transfer of Property Act, 1882

  • Any property transaction is completed under the law provisions of the Transfer of Property Act 1882
  • It does not define selling a property without the original Sale Deed as the necessary documents for property exchange requires a Sale Deed or title necessarily. 
  • The absolute rights cannot be transferred until and unless there are original documents where the buyer’s name will be registered, so selling a property without the original Sale Deed and deed registration is not allowed.

The amount is transferred as 

  • Price Paid or price promised.
  • Part paid or part promised.

Two ways of Selling a Property 

  • The value of Tangible immovable property exceeds INR 100 or more for the reversion of any other tangible properties; the sale is made with a registered instrument, and where selling a property without an original Sale Deed is not accepted.
  • If the value is less than INR 100, the sale can be made through the delivery of possession. 

The sale is complete and absolute when the seller transfers the possession of the said property to the buyer in full, and it requires certain documentation so selling a property without the original Sale Deed is not in effect.

Sale Contract between two Parties

  • The two parties can make a contract with a mutual decision regarding the sale of the property and its delivery of possession. 
  • The terms and conditions are settled by both parties based on location without any interest or charges. 
  • Any property-related issues should be handled after taking legal consultation from a property expert lawyer who will help them understand the situation and provide efficient outcomes.
  • The lawyer will explain why selling a property without the original Sale Deed is not accepted until there is a certified copy of the Sale Deed available. 

Who is the Transferor?

  • The person who legally owns a property and transfers the ownership rights to another person in exchange for a price is known as the Transferor. 
  • They must be aware that selling a property without an original Sale Deed can put them at legal risk.

Who is the Transferee?

  • The person who received the title or transfer of property, they are the person to whom the ownership is conveyed and they enjoy every right of the property by completing the payment on time.
  • When buying a property, they must acknowledge that selling a property without the original Sale Deed is not accepted and can be legally risky.

What Documents are necessary for Selling Property?

  • The most crucial part of a transaction is the necessary documentation that must be present while selling a property or deed registration. Many other laws do not allow selling a property without an original Sale Deed.
  • A lot of property disputes and lawsuits are filed in India due to the unavailability of proper documentation and needed certificates. As a result, frauds and invalid transactions happen, which put both buyer and seller at legal risk.
  • This is why selling property without an original Sale Deed is not considered when evaluating a property.
  • The necessary documents are printed and processed to provide them to the buyer in making an absolute deal and to refrain from selling a property without the original Sale Deed.
  • Any matter regarding transactions where documents were not original or invalid should be solved by taking appropriate legal consultation.

The documents needed are as follows:

  • Letter of allotment: The relevant area or authority provides a letter of allotment of the property, which acts as an initial document in these cases. 
  • Sale Deed: To successfully sell a property, the original Sale Deed or conveyance deed is required. If a person is selling a property without the original Sale Deed, they might require an encumbrance certificate or gift deed if the property is by any chance received from someone.
  • The sanctioned plan: The authorized individual will provide a building plan or appropriate sanctioned plan according to the owner’s name.
  • Encumbrance certificate: This is necessary to indicate that the property title is not allowed to dues as of now; it is free. The buyer must be aware of such certificates to know if land or asset is free from liabilities. Just like how selling property without the original Sale Deed is not efficiently achieved, similarly, without an encumbrance certificate, it is not possible to transfer a property. 
  • Sale agreement: After every documentation is provided and approved. The parties may draft a sale agreement and apply the following terms and conditions, which are required. This is signed on non-judicial stamp paper. It is important for a transfer as it holds legal value and is a part of the evidence. Selling a property without the original Sale Deed and sale agreement is not possible and effective. 

Action to be taken when Original Documents are Misplaced 

  • If the original documents are misplaced, the first action to be taken is the filing of an FIR at your nearest Police station. 
  • The copy of the complaint is evidence and shall be kept safely. Even if the bank lost or misplaced it, you must file an FIR. 
  • An advertisement must be placed which states about the lost Sale Deed or any important documents. It should be in local/national newspapers for a greater point to reach. 
  • The owner can apply for a certified copy of the Sale Deed with the local sub-registrar by showing the advertisement and a police complaint copy.
  • While selling a property without the original Sale Deed is not legally accepted, a certified copy can be obtained in emergency cases by following the procedure deciphered by taking the needed legal help.

Conclusion

The blog discusses selling a property without the original Sale Deed. The documents are crucial and must be stored safely and securely so they can be used in the future. A legal professional can help with matters of misplaced documents and taking the next step.

For registration of Sale Deed or getting a copy of Sale Deed, legal consultation is required to have a better understanding of the matter.

Bhavya Choudhary

Written by

Bhavya Choudhary

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