Sale Deed

About Sale Deed

The meaning of sale deed refers to a legal document that outlines the terms and conditions of the sale. It is executed by the seller and the buyer for the transfer of ownership of the property. It outlines the important information regarding the price to be paid for buying the property, description of the property, how and when the property ownership will get transferred to the buyer, etc. It is an essential document as it is the proof of ownership of the property. It legally reports the proof of the sale of property from the seller to the buyer. The sale/purchase of the property is not legally complete until the sale deed is signed by the buyer and the seller and is registered.

As per the Indian Registration Act, 1908, an agreement for the transfer of an interest in immovable property of value more than Rs.100, is required to be registered. Thus, the sale deed of a property, such as a flat, building or land must be registered for the sale to be legally valid. The sale deed is executed by two parties, i.e. seller and buyer. The seller is the person who is selling or transferring his/her ownership of a property. The buyer is the person who purchases the ownership of a property for consideration. The sale deed must be registered in the local Sub-Registrar’s office. An unregistered sale deed has no value in the eyes of law. The sale deed is made on non-judicial stamp paper, that is purchased as per the value prescribed by the stamp duty act of a state. The amount of stamp duty levied on properties differs from one state to another. The charges on stamp duty vary from 4% to 6% on the property’s sale value. The sale/purchase of a property is valid when the sale deed is registered by a Sub-Registrar and when the buyer and seller sign it in the presence of at least two witnesses.