Sale deed

A sale deed is the final document in a property purchase. It records that the seller has transferred ownership to the buyer for a price, describes the property, and confirms that the price has been paid. Once it is registered, the buyer becomes the owner.

The law behind it

Section 54 of the Transfer of Property Act, 1882 says that a sale of immovable property worth Rs 100 or more can be made only by a registered document. The same section says that a contract for sale (an agreement to sell) does not by itself give the buyer any interest in the property. Stamp duty is paid under the State's stamp law, usually on the market value.

What a sale deed contains

• Names and details of the seller and buyer.
• A full description of the property, with boundaries and survey or plot numbers.
• The price and how it was paid.
• How the seller came to own it (the chain of title) and a promise that it is free of encumbrances, or a list of them.
• Handing over of possession and original documents.

After registration

Registration makes you the owner, but you still need to update the local records through mutation, so that property tax and revenue records show your name.

Draft one with the sale deed document, and see gift deed vs sale deed.