What are the important points that should be kept in mind while drafting a Sale Deed?

What are the important points that should be kept in mind while drafting a Sale Deed?

A sale deed is a legal document that demonstrates how ownership of a piece of property is transferred from a seller to a buyer. Both the buyer and the seller's rights are safeguarded by the deed. A clear, well-written deed will eliminate uncertainty and reduce legal dangers.

In general, the content of sale deed includes the details mentioned below:

  • Descriptions of the parties involved
  • Description of the property being transferred
  • Indemnity & encumbrance clause
  • Before moving forward with the transaction, the seller should settle any outstanding loans secured by the relevant property as a mortgage.
  • Consideration of Sale
  • Delivery & possession of the property

Documents required for getting a sale deed are mentioned as follows:

  • Two passport size photographs of the buyer, the seller and all the witnesses.
  • Photo Identity Proof – voter's ID card and passport of the buyer, the seller and all the witnesses.
  • Copy of municipal tax bill to mention the year in which the property was built or constructed.

If both the buyer and the seller agree to rescind the sale deed, the cancellation can be accomplished bilaterally. The cancellation process is only started when one party asks it and the other refuses it.

When either the buyer or the seller acts in a manner inconsistent with these terms and conditions, or when one party fails to act or refuses to act as required, a breach of the sale agreement occurs. A large number of these breaches include: Payment was not made by the due date. The promised product was not delivered.

There are certain remedies available to the buyer against the seller in case of breach of the agreement, which are mentioned as follows:

  • Suit for Price.
  • Damages for non-acceptance.
  • Damages for Non- Delivery.
  • Remedy for Breach of Warranty.
  • Specific Performance.
  • Interest by way of damages and special damages
  • Suit for repudiation of contract before date or anticipatory breach.

Important clauses that should be kept in mind while drafting a Sale Deed:

  1. Parties in the Sale Deed: The parties' information must be included in the sale deed. According to the sales agreement, the deed must include the names, ages, and addresses of the appropriate parties.
  2. Description of the sales property: The correct description of the property is a must. Without that the sale cannot take place.
  3. Sales agreement: Parties must enter into a sales agreement to determine the terms and circumstances of the agreement prior to executing the selling deed.
  4. Sale Consideration: The consideration clause specifies the price at which the sale is made; the price should be stated in both numbers and digits.
  5. Payment Method: In the sale deed, the parties mutually agree to specify the manner and amount of payment, such as cash or net banking demand.
  6. Advance payment: In order to complete the transaction, the buyer must always provide a flat token amount as an advance payment. The remaining balance is then paid. The buyer is compelled to sign a sale deed as a result. The amount paid in advance must be specified in the sale transaction, and the seller must provide the buyer with a receipt for the payment. Both parties must agree to implement the instalment payment clause before the buyer can pay the advance payment in instalments with interest.
  7. Transfer of title clause: It was stated that the transfer of ownership from the seller to the buyer establishes the seller's intention to sell the property in order to purchase. The transfer of all rights from buyer to seller is necessary.
  8. Delivery of the deed: Both the sales agreement and the sale deed should be given to the buyer while they are in possession of the property. These are the two crucial documents that must be given to the buyer.
  9. Indemnity clause: A buyer who paid the charges has the right to walk over to the seller to have him indemnified under this condition. The property of the sale shall be free from all charges, such as energy bills, water bills, motor gauge, or any other obligation.
  10. Liability in the case of default: To prevent difficulties for the cell, in the event of a default by either side, the party that was not at fault will be compensated.
  11. Registration and witnesses: Following completion of the sale deed, the buyer and seller must X it and include the two witness testimony in accordance with the Registration Act of 1908. Within four months after the sale deed's execution date, it must be completed.
  12. Right to quiet enjoyment of property clause: It means that the vendor can access and peacefully enjoy the property he has bought without interruption from him or any other person.
  13. Reddendum clause: Even if the title has been transferred, the seller still retains some rights, such as usage restrictions. This provision is included by the seller.
  14. Tandem clause: This clause states that the seller will sell the property along with any improvements made to it.
  15. Warranty clause: This provision satisfied Vendee that he is now the property's legitimate owner.
  16. Time is of the essence clause: The time is of the essence clause is the most significant clause in a real estate contract nowadays. It implies that one party must play an effective role within a specific amount of time. This provision mentions the delivery of the documents, the manner of termination, and the closing date and states that inability results in contract breach. This provision requires that the sales deadlines be met.
  17. Right to call off the deed: One can insert a provision in the selling deed that forbids them from carrying out any further responsibilities in the event that specified circumstances develop. In most cases, parties cancel the deed when the other party refuses to transfer the payment and the property's possession.
  18. Dispute resolution clause: This clause was created upon mutual consent to lay out the steps to be taken in the event of a dispute, such as mediation or arbitration, and if either party is still unsatisfied after those steps, they may proceed to court to have the matter resolved.


The sale deed is a crucial legal document, thus it is best to prepare it slowly and carefully while paying careful attention to every phrase. Additionally, because it demonstrates the buyer's ownership of the property, it serves as the primary document for any future sales by the buyer.

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