We hear expressions like leasing out stores, purchasing real estate, renting out an apartment to a tenant, mortgaging land for the purpose of lending loan, and so on all the time. This shows the numerous ways in which transactions revolve around the land. Individuals/companies/government entities may engage in transactions of purchasing or selling land and come across a legal transaction known as a Sale Deed. It has a significant value for both buyers and sellers. Before delving into the contents of the sale deed, let us first understand What is a Sale Deed?

A Sale Deed is an essential and most valuable legal document that indicates the title of ownership has been transferred from a seller in favour of a buyer, or to put it more simply, ownership has been transferred from a seller to a buyer. This is one of the most important legal documents that must be signed between the seller and the buyer to transact when buying real estate.

A Sale Deed is made on a non-judicial stamp paper by an Advocate in accordance with the value recommended by a State’s stamp duty Act. The value of the Sale Deed varies across States and is recommended by the relevant State’s Stamp Act. For selling or taking possession in India, the Registration Act of 1908 directs the execution of a Sale Deed. The parties in a Sale Deed is refer as ‘Vendor’ and ‘Vendee’. The Sale Deed is a very significant legal document for a buyer as well as a seller of a property. The Sale of a property is not legally completed until the buyer and seller execute the sale deed. It is also very important to register the Sale Deed with the relevant office of the Sub-Registrar of Assurances.

To reduce the risks involved in transferring the ownership of property, all clauses of the Transfer of Property Act should be carefully examined and drafted while preparing a Sale Deed. Thus, before drafting any clauses, it is critical to understand the essential components of a Sale Deed and the requirements and liabilities.


1. Parties related to a Sale Deed

  • This clause in a Sale Deed includes the information of the parties involves in the sale of a property. It includes the information about the buyer and seller of that property, such as their names, residences, ages, contact information, jobs, and the date on which the deed was executed in order to make it valid.
  • In a Sale Deed, there are two parties namely, seller or buyer.
  • Another combination of phrases for a seller and a buyer in a Sale Deed is vendor and vendee.
  • Although there is no “affidavit” required for the information supplied by the parties, the details of both parties must be authentic in a Sale Deed. Make sure that the seller’s name in the deed of sale is exactly the same as the one that appears in the documents where he purchased the property in the first place.
  • If one of the parties wishes to implement the agreement in his or her absence by granting a Power Of Attorney (PoA) to other person, then the detail of the Power Of Attorney (PoA) should be mentioned in the ‘details of the parties’ section/clause.
  • If you are purchasing a property from an individual, ensure that individual is an adult who is above 18 years old or most important that person must be sound mind so that he/her can legally transfer the property.

2. Details of the property

  • In a Sale Deed, there is a clause that informs both the parties of the agreement in detail about all dimensions of the property which is transferring from seller to buyer.
  • The property specifics needed in the Sale Deed, such as plot measurements in yards or metres, the length of the property extending in a particular direction, carpeting area in case of flats or apartments. It also includes the land registration number, which may be used to verify data in official records, the details of construction of a structure including the year the building was built, exact location of that property for the convenience of the parties, and the surroundings of the property such as a bus stand, any school or college or in metro cities the station name.
  • In addition to giving all these details of the property in a Sale Deed, a schedule is also must which should be attached to deed that describes all these precise details of the property.

3. Sale Consideration

  • One of the most essential and primary variables for a buyer or seller of a property is the price at which the property is bought or sold. The price at which the agreement is finalised is referred as ‘Consideration’ in a Sale Deed.
  • Sale Consideration clause states the price for transferring the property which has been mutually agreed by both the parties of a Sale Deed.
  • To avoid any confusion or a legal dispute after the transferring of the property, the actual price of that land must be mentioned in the clause clearly. The sale consideration is one of the most important clause which should be included in a Sale Deed for both buyer and seller.

4. Mode of Payment

  • While drafting a Sale Deed, it will be better if we write all the terms very clearly and include all the important points to any legal dispute later.
  • One of these important is the mode of payment by which the buyer will pay to seller the amount of the property.
  • Before all of this, if a person have made any payment in advance to the seller of that property for booking the apartment or any flat, then this detail must be clearly mentioned in the Sale Deed. The amount which is still due should also be stated in the document.
  • According to the agreement between both the two parties i.e., seller or buyer, the mode of payment for the amount of the property can be done in cash, demand draft (DD), cheque or net banking transfer. Whatever the mode of payment by which the parties are comfortable with or finally agreed, should be mentioned in the Sale Deed along with amount of the property also.
  • Any other information regarding the amount paid in instalments and each instalments dates must be mentioned in the Sale Deed.

5. Transfer of Title

  • Transfer of Title simply signifies that the title of ownership has been transferred from a seller in favour of a buyer. The main purpose of buying a property is to become the owner of that property and in a Sale Deed the term ‘transfer of title’ is used in this sense.
  • There is term called ‘words of conveyance’ which is a clause used in a Sale Deed that states when the title of the property is passes from a seller to the buyer.
  • It expresses the intention of the seller to transfer of ownership in favour of the buyer. This transfer of title or ownership can happen immediately or after a certain period of time. It intends to transfer all ownership rights from the seller to the buyer, making the buyer the sole owner.


So, a Sale Deed is essentially a document that there’s proof of such a transfer. Not only does it describe the property in detail, but it also outlines the rights and obligations of each party. So, because the Sale Deed is a legal document, it is best to construct it with patience while carefully studying all of the clauses discussed above in this article. Furthermore, it serves as a key document for future buyers to sell as it establishes proof of their ownership of the property.





  1. The Registration Act of 1908
  2. Transfer of Property Act, 1882

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