What are the Components of the Original Sale Deed?

by  Adv. Praneeth GN  




3 mins


Original Sale Deed


  • An original sale deed is essentially a legal document that allows the owner or seller of the property to transfer the rights to the buyer.
  • On successfully drafting a valid original sale deed on non-judicial stamp paper of the prescribed value, the parties to the agreement must take steps for deed registration at the local sub-registrar office, as without deed registration, the buyer cannot legally become the rightful owner of the property.
  • Furthermore, various components must be addressed during the creation of the original sale deed. 
  • According to the Transfer of Property Act, the original sale deed must include several clauses in addition to the elements. One may approach for legal advice before entering into such a transaction.

Components of the original sale deed

  • Generally, a drafter makes a Draft sale deed first, which is presented before both parties so that they can frame their opinion on the same and communicate the required changes to the Drafter. 
  • It is the duty of the drafter that while finalizing the sale original sale deed, such changes so communicated are taken into consideration and incorporated in the original sale deed by adding or removing the various clauses from the draft sale deed. 
  • The original sale deed is a legal document that outlines the sale’s terms and conditions. 
  • It contains essential information such as the price to be paid, a description of the property, how and when the owner will be transferred to the buyer, and so on. 
  • It is a necessary document because it proves property ownership.

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  1. Description of parties
  • The first clause in the original sale deed is a description of parties which states the basic details of the buyer and seller, such as their names, addresses, occupations, and the date of execution of the deed. 
  • The parties may be an individual or a company, a corporate body trust, etc. therefore; one must ensure that the person is eligible to contract.

      2. Description of the Property 

  • The subject matter must be precisely defined; therefore, an accurate description of parties must be given, which includes the carpet area, measurement of the plot, registration number of the land, the length of the property, construction details of the building, exact location, etc.
  • A proper understanding of these details’ schedules may be attached to the deed or a graphical representation.

      3. Sale Consideration 

  • One of the most important clauses in any deed is the consideration which means something in return for executing a valid deed; there must be a proper consideration. 
  • Therefore, a proper price must be decided between the parties. To avoid confusion, one must mention the cost in numbers and words in the deed.
  • In the case of the original sale deed, the general practice is to pay a certain amount of money in advance to ensure that the buyer does not back out from the deal at a later stage. 
  • The amount received in advance must be mentioned in the deed and the remaining amount to be paid in the future. This serves as an acknowledgment to a buyer from the seller.
  • Also, the mode of payment decided between the parties must be mentioned. It may be in cash, demand draft, cheque, or via internet banking as suitable to both the parties.

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      4.Transfer of Title clause 

Transfer of ownership is the main goal of buying a property; in the original sale deed, transfer of title refers to the transfer of ownership; the such transfer may happen immediately, or after a specified period of time; upon transfer of ownership, the date of possession is decided and which is specifically mentioned in the original sale deed.

      5. Indemnity and Encumbrance clause 

The seller must ensure that the property is transferred if free from any encumbrances such as charges, taxes, demands, and outstanding bills, and this must be, and a clause is added in the original sale deed in this respect. If such charges remain, the buyer who pays them off has the right to ask the seller to indemnify him. The seller must also ensure that the property is free of any type of litigation. 

     6. Liability in case of default

If either of the original sale deed’s parties is at fault, that party is responsible for making good for the loss caused to the non-at-fault party so that the original sale deed’s execution is not jeopardized.

     7. Right to call off the deal

  • One can include a clause in an original sale deed that allows them to ‘back out of a business transaction if certain circumstances arise. 
  • It gives them the right to refuse to continue and perform any future obligations related to the completion of the transaction in certain circumstances. The right to call off clause is a type of provision.

      8. Dispute Resolution

  • People seek to include a dispute resolution clause in their original sale deed to avoid this situation and seek alternative measures. It establishes a procedure agreed upon by the parties for how to proceed in the event of a dispute. 
  • The most common is arbitration. If any of the parties is still dissatisfied with the decision, they can petition the Court to resolve the dispute.

       9. Witness

At least two witnesses must attest original sale deed, along with their personal information such as name, age, and address and the signatures of the vendor and the vendee.

      10. Time of essence clause

This provision essentially reinforces the idea that parties to a transaction may suffer losses if the transaction is not completed on time.

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As drafting an original sale, a deed necessitates extreme caution and presence of mind, as well as extensive knowledge of property and other allied laws. It is preferable to have some legal advice using the services of advocates with extensive experience in property transactions to avoid unexpected and unnecessary litigations that may arise from a poorly drafted original sale deed.

Various components of a Sale Deed must be considered while drafting a Sale Deed. Therefore, it is recommended to consult a professional legal expert.

Adv. Praneeth GN

Adv. Praneeth GN


4.8 | 85+ User Reviews

Praneeth GN is a legal consultant who prioritises ethical and professional conduct. He graduated with (B.A. and LL.B) from the K.L.E. Society Law College. With more than 8 years of experience in handling legal cases independently. He has the potential to understand and explain complicated legal words in simple terms to clients.

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