Sale deed in real estate

What is Sale Deed in real estate?


A sale deed is a legal document used in real estate transactions to prove the purchase and transfer of property ownership from the seller to the buyer. This is the primary ownership transfer paperwork. A sale deed is sometimes known as the conveyance or final deed.

This most significant piece of legal documentation certifies the buyer and seller’s evidence for buying and selling a perfect property. The buyer or transferee and the seller or transferor should take note of this vital paperwork. The buyer and seller must sign a sale document before the purchase or sale of the property can be considered legally completed. A sale agreement is frequently not finalized and signed until all terms and conditions have been met by both parties.

Also read: 8 vital components of a Builder-Buyer agreement

Importance of Sale Deed:

A sale deed is a legal document detailing the purchase and sale of property (buyer and seller). It demonstrates who owns what. It gives the buyer the property’s rights from the seller (the transferor) (transferee). The following rights are given to the purchaser:

  • Right to sell.
  • Right to use.
  • Right to lease/mortgage.

Since it effectively constitutes a contract, all legal prerequisites for a contract’s creation must be met. Therefore, a registered sale deed is a document that carries legal weight. These are the legal implications:

Proof of ownership: Once the sale deed execution procedure is through, the buyer receives ownership of the property. The buyer receives complete ownership of the perfect property and absolute right over it.

The sale deed includes the primary function of attesting the property’s freedom from encumbrances. This indicates that the seller is the only owner of the apartment and that no liens are present. Before the transfer is signed, all outstanding mortgages on the property should be paid off. Some purchasers use an agent to examine the registrar’s office, especially in major deals.

As the parties are aware of their responsibilities and rights, it prevents uncertainty.

In the event of a resale, it directs a potential investor before he makes a final investment choice in the property. In this case, a sale deed makes it easier to sell the property again. It is the main document that grants the buyer the title. Based on the deed, he may further transfer this title.

Here comes a question can a GPA holder execute a sale deed? Therefore, if the GPA is registered and stamped, the GPA holder may execute the selling deed. However, a GPA that authorizes the holder to proceed with any deed or transfer may only be executed by the registered owner.

Difference between Sale Deed and Sale Agreement:

Immovable property sale agreements and sale deeds are two separate documents. Simply put, the selling agreement for a property is a contract that specifies the terms under which the property will be sold. Likewise, the terms and circumstances under which the property (to be sold) will be transferred are specified.

So, in essence, a sale agreement comprises a promise to transfer a property in the future, subject to the fulfillment of certain terms and circumstances. No rights or interests in the property are created or established for the potential buyer.

Additionally, there is the schedule of property in the sale deed. The greater extent of the perfect property, including the Taluk, Hobli, Village, and Survey number on which the apartment complex is located, as well as a description of its total size and border, are identified in Schedule-A. The precise apartment or unit under consideration is described in Schedule B.

Process of Registration:

To verify the sale deed and complete the transaction, both the seller and the buyer must maintain all pertinent papers in the sub-registrar office. The selling deed must be compulsorily registered following the Registration Act of 1908. The deed is written down and transcribed on paper without a court stamp.

The customer must purchase the stamp paper. What determines the stamp paper’s value is as follows:

  • The property’s worth.
  • The appropriate stamp duty rate is the rate in effect in the StateState where the property is situated.
  • Additionally, a non-judicial stamp paper with the determined value must be bought.
  • The deed must thus be presented and typed on stamp sheets.
  • The sale paperwork must be checked with the sub-registrar office to complete registration. 
  • To follow the parties, two witnesses are required.

Sale Deed document:

The sale deed is a primary ownership transfer paperwork.

The sale deed document contains the following elements:

  • Name, residence, and the parties’ father’s or husband’s name.
  • Full address and description of the property’s area.
  • Mode and timing of sale consideration payment.
  • Transfer of Ownership.
  • Property encumbrances, such as loans, mortgages, etc.
  • Adherence to legal obligations.
  • Statutory payments, such as property taxes and utility bills.
  • Punishment or compensation clause for default.
  • The date that the document was signed, along with the document’s registered deed number, serial number, book number, page number, etc.

Click Here to learn more about the importance of Occupancy Certificate(OC)

Sale Deed of immovable property:

According to Section 54 of the Transfer of Property Act of 1882, only a registered document may be used to transfer immovable property with a value of one hundred rupees or more or to transfer a reversion or other intangible item. This is a sale deed of immovable property. However, a recorded document or actual delivery of the property may be used to transfer tangible immovable property with a value under one hundred rupees. 

When the seller hands the perfect property over to the buyer or any person under his direction, tangible immovable property is delivered.

Here, we require Contracts to cover immovable property sales for sale, which specify the conditions under which the property will be sold. It in no way constitutes a charge or an interest in such property in and of itself.

How to get a Sale Deed copy online?

The selling deed is one of real estate transactions’ most important legal papers. A non-judicial stamp paper with the required value, as outlined by the stamp legislation of the State in question, is used to prepare a sale document by a legal draughtsman. The value of stamp sheets is now limited to Rs.100 in various States, including Telangana. 

The parties should utilize five to six non-judicial stamp papers, and the balance shall be paid via challan system (AP), stamping, and other means made available by the State Government (in other States).

So, how to get a sale deed copy online? The selling deed is often recorded at the sub-registrar office to finish the property transaction procedure. 

The following is the standard procedure for sale deed registration:

  • Having a registration appointment that they have acquired from the registrar’s office.
  • Both parties must appear at the office on the scheduled day with the witnesses.
  • Two passport-size photos are on both versions of the documentation (seller and purchaser).
  • E-stamp paper that has the correct amount of stamp duty.
  • Electronic registration fee receipt with the undertaking.
  • A PAN card copy.
  • A copy of each party’s original identification (seller, purchaser, and witness).
  • Receipt of TDS if the property is worth more than Rs. 50 lakh.

 It is not possible to directly register an electronic copy of a selling deed. You must visit the sub-office to register. However, collecting the electronic stamp paper and scheduling a registration appointment online can lessen your difficulty.


The advantages of a sale deed are:

  • A sale deed is a legal document that gives the sale transaction legal legitimacy.
  • The buyer and seller’s rights and responsibilities are explicitly spelled out.
  • The property’s description is also included.
  • A registered sale deed may be used as evidence in any disputes.


The buyer should confirm that the title to the perfect property is clear of all encumbrances before the selling transaction is executed. 

First, the property buyer must get confirmation of the encumbrance status from the registrar’s office. Then, after confirming that the property is unencumbered, the buyer should confirm that all required payments, including water/electricity bills, cess, property taxes, and maintenance fees, have been made in full and that no other debts or requests for permission to transfer the property through a sale deed are pending.

Real estate purchasers should know that the sale deed is one of the most crucial records establishing ownership following the transaction. Therefore, one must have this document. If both the buyer and the seller agree to cancel the deed, the cancellation can be done bilaterally. Only when one party requests a cancellation and the other rejects is the process of a cancellation initiated.

Frequently Asked Questions

1. Can Sale Deed be challenged after 3 years?

The limitation period would be taken into consideration concerning the substantive relief of the sale deed cancellation, which would be three years from the date of learning of the sale deed that is being sought to be canceled, according to a bench of Justices MR Shah and BV Nagarathna.

2. What is the validity of the Sale Deed?

A sale agreement that has been recorded is thought to be valid for three years. The limitation is then extended by the amount of time specified in any negative condition in the agreement, such as a requirement that the buyer registers a property within three months.

3. How to find the Sale Deed number?

The sale deed number is often put in the upper right corner of the paper.

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