A sale deed is a complete title deed which seals the transfer of ownership of property, whether land, a house, shop or flat, from the seller to the buyer. An intrinsic part of the Registration Act, 1908, it must take compulsory registration with the Sub-Registrar of Assurances to confer legal ownership rights to the buyer.
Key Features of a Sale Deed
- Proof of Ownership: It is conclusive evidence that the buyer is now the legal owner.
- Mandatory Registration: Without registration, ownership is invalid.
- Contents:
- Names and details of buyer and seller
- Property description (survey number, boundaries, area, flat number)
- Sale consideration (price paid)
- Transfer of title, rights, and possession
- Payment of stamp duty and registration charges
- Signatures of both parties and two witnesses
- Possession Clause: Specifies when possession is handed over.
- Encumbrance Assurance: Seller declares property is free of loans, disputes, or mortgages.
Charges for Sale Deed Registration (State-Wise)
| State | Stamp Duty (Male Buyer) | Stamp Duty (Female Buyer) | Registration Fee | Source (Govt) |
|---|---|---|---|---|
| Delhi | 6% | 4% | 1% of value + ₹100 pasting | revenue.delhi.gov.in |
| Maharashtra | ~5-6% (no gender difference) | ~5-6% (same as men) | 1% of property value (max. ₹30,000 for partition deeds; waived for farmland partition) | igrmaharashtra.gov.in |
| Uttar Pradesh | 7% | 7% – 1% exemption for properties up to ₹1 crore | 1% of property value | newsonair.gov.in |
| Jammu & Kashmir | 7% | 3% | 1.2% | igr.jk.gov.in |
| Haryana | 7% | 7% (no concession) | 1% | https://revenueharyana.gov.in/ |
Things You Must Check Before Making a Sale Deed
- Title Verification: The seller should be the rightful owner; check this before making a Sale Deed.
- Encumbrance Certificate: There should be no loans or disputes.
- Accurate Property Details: No mismatch in survey or flat number.
- Correct Buyer-Seller Details: The name should be the same as in Aadhaar/PAN.
- Full Disclosure of Payment: Mention the exact sale price.
- Witnesses: There should be at least two with proper identification like Aadhaar/PAN.
- Stamp Duty & Registration Fee: The Fee is according to the State Government rules.
- Possession Date: Mention clearly.
Commonly Missed Points
- Spelling Errors: If there is an error in the spelling of a name, then it requires a rectification deed. (Telangana Registration Dept).
- Blank Spaces or Overwriting: Registrar may reject document (Odisha Registration Dept).
- Language Issues: The Deed must be in a language understood by the registrar (IGR Maharashtra).
- Missing Witness Information: Leads to invalid execution (Mizoram Revenue Dept).
- Late Presentation: Must be registered in time, else risk rejection (Odisha Registration Dept).
FAQs on Sale Deed
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- What is a sale deed?
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A registered legal document transferring ownership of property from seller to buyer.
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2. Is registration of a sale deed mandatory?
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Yes, under the Registration Act, 1908.
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3. Who pays the stamp duty and registration fee?
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Buyer.
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4. Can a sale deed be executed without payment of the full price?
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No, payment must be mentioned in the deed.
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5. What if stamp duty is underpaid?
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Document is invalid, and the penalty applies.
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6. Can I buy property without a sale deed?
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No. Agreements or receipts do not transfer legal ownership.
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7. What is the role of witnesses?
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Two witnesses are compulsory for validity.
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8. How soon must a sale deed be registered?
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Generally within 4 months of execution.
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9. Is Aadhaar mandatory for sale deed registration?
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Yes, along with PAN for values above ₹10 lakh.
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10. What is an encumbrance certificate?
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Proof that property is free of loans or legal disputes.
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11. Can women buyers get a concession?
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Yes, in states like Delhi (4% vs 6% for men) and UP (1% rebate).
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12. What if the seller hides a loan on the property?
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Buyer can sue for fraud; hence, the encumbrance certificate is vital.
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13. Is physical presence of parties needed?
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Yes, both buyer and seller must appear before Sub-Registrar.
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14. Can NRIs buy property in India with a sale deed?
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Yes, except agricultural land, with a valid passport and PAN.
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15. What if the deed has spelling mistakes?
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A rectification deed must be registered.
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16. Can minors execute sale deeds?
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No, minors cannot be parties without a guardian.
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17. Can a sale deed be cancelled?
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Yes, through a registered cancellation deed or court order.
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18. Is e-registration available?
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Some states, like Maharashtra and Delhi, allow online preparation, but final registration is physical.
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19. What happens if a deed is not registered?
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Buyer does not get legal ownership rights.
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20. Who keeps the original deed?
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Buyer keeps the registered deed; the registrar maintains official records.
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