Legal Guide

Sale Deed of Land: Importance, Format, Clauses, Provisions

by Bhavya Choudhary · 3 min read

Sale deed of land

Introduction

A sale deed is a document that is very vital when the property ownership is transferred from a seller to the buyer. A deed of sale is a conveyance deed similar to a gift deed, lease deed or mortgage deed, etc.

The sale deed of land and other related documents play a crucial role during any transaction regarding a property.

According to the Indian Registration Act, the registration of a sale deed of land is crucial to verify the title of ownership for an individual. There are several factors to consider when drafting a sale deed of land.

Meaning of Sale deed

  • The sale deed is a crucial legal document that enables the seller to transfer the ownership of a property to the buyer.
  • The seller completes the drafting of the sale deed of land and can get it registered with the concerned sub-registrar of the state.
  • Registration is a mandatory process. If the sale deed of land is not registered by the concerned authority, the buyer cannot prove the ownership title or be the rightful owner. So this is the reason why it is very crucial to get the sale deed of land drafted and registered.
  • In a sale deed of land, the seller is called the vendor, and the buyer is stated as the vendee. In Hindi, it is translated as Bainama paper or Bikrinama.
  • A sale deed of land is sometimes also referred to as a title deed, but there is a legal difference between the two deeds. There are several components stated in a sale deed of land, along with a few clauses defined by the Transfer of Property Act.
  • While drafting a sale deed, many obligations, duties, and rights of both parties are mentioned. The parties can make alterations according to their requirements in the future.
  • The initial step in selling and purchasing a property or land is drafting the sale deed of land, which allows the individuals involved to rectify any issues as they clear it with mutual consent. After the sale deed of land is finalized, the deed will be registered under the name of the buyer.

Components of Sale Deed of Land

When an individual makes a draft for the sale deed of land, the components are to be mentioned correctly. They are as follows:

  • Party details: The details of both parties are to be mentioned in the sale deed of land. Name, address, age, contact numbers, and any other necessary details must be fulfilled.
  • Property/Land description: The sale deed of land must elaborate on the essential property details such as an address, location, area, color, date of construction, and so on.
  • Indemnity/encumbrance clause: This clause states that the seller will clear the property of any mortgage or loans that are pending. No charges or taxes will be unpaid by the seller to ensure the proper transfer of ownership.
  • Details of the payment: the owner will state the amount at which he is selling the property to the buyer. Additionally, any payment advances or installments are to be clarified. The date of each advance or installment payment must be specified.
  • Payment mode: the mode of payment is to be stated in the sale deed of land for any kind of verification in the future. The amount of the property is maintained and how the payment is made to the seller is specified. It can be transferred through cheques, bank account transfers, or cash.
  • The possession date of the property: The exact date when the buyer will receive possession of the property is recorded in the sale deed of land.
  • Property witness: the presence of two witnesses is mandatory to register the sale deed. At least a minimum of one witness from the buyer’s side and one from the seller’s side is required to attest to the document. The witness needs to provide their identity proof and any other required details such as name, age, contact, address, etc.
  • The seller may draft the sale deed of land with these components and can add other additional clauses depending on the necessity.

The seller should also make mandatory disclosures about the property to the buyer. It is disclosed in the sale deed of the land itself. This is mentioned to reduce the chances of any unnecessary disputes in the future for both the buyer and seller. The disclosures are about:

  • Any defects or damage to the property which is being sold.
  • Materialistic defects in the property.
  • Declare the disputes or conflicts related to the property (if any).
  • The tax or other clearance charges need to be disclosed briefly.
  • Any additional disclosure clause if the seller wants to entail.

Process of drafting a Sale Deed of Land

There are a few simple steps involved in the drafting process that should be considered. They are as follows:

  • Contact a Lawyer: It is vital to find and take help from the legal advice of a lawyer during the drafting process and the deed registration. They will thoroughly Understand the sale deed requirements and review every clause for any unintentional mistakes.
  • The process of drafting: After you have addressed every issue and requirement to the lawyer, they will form a draft for the sale deed of land within 3 to 4 business days and contact you for further procedure.
  • Printout on non-judicial stamp paper: The draft will be printed on non-judicial stamp paper after it has been reviewed and approved.
  • Meeting the Sub-Registrar: The sub-registrar of the area where the property/land is situated will be contacted by the lawyer, and they will arrange for an appointment. The parties must reach there at a scheduled date and time.
  • Registration: During the deed registration, two witnesses and the lawyer must be present. After the signatures and registration fees are cleared, the deed will be registered by the sub-registrar.
  • Issue of registered Sale Deed: The sub-registrar will issue the sale deed copy after it has been approved and attested.

Few documents are required for the Sale Deed

  • The building plan
  • General POA
  • NOC
  • Sale agreement
  • Allotment letter from the builder
  • Recent tax cleared receipt
  • Bill payment receipt
  • Encumbrance Certificate
  • Possession certificate
  • Completion and occupancy documents

Conclusion 

The sale deed of land is a crucial document through which the transfer of ownership is acquired. It must be drafted first and registered after the finalization of each clause. Both parties should give their mutual consent before the registration is commenced. If by any chance, any complications are foreseen, the parties can seek legal advice to solve the issue at hand.

A deed of sale is very important to prove the ownership title in case of any litigations in the future. The drafting process can be done with consultation from a property expert lawyer who will acknowledge every query and clause in a much-elaborated way.

Bhavya Choudhary

Written by

Bhavya Choudhary

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