Sale deed and agreement to sell format
A sale deed transfers ownership of immovable property from seller to buyer. Under Section 54 of the Transfer of Property Act, 1882, a sale of immovable property worth Rs. 100 or more must be made by a registered instrument. An agreement to sell only creates a right to obtain a sale deed; it does not transfer ownership.
Key points
- Sale defined and form prescribed: Section 54, Transfer of Property Act, 1882.
- Compulsory registration: Section 17, Registration Act, 1908; present for registration within four months of execution (Section 23).
- Stamp duty is payable under the State’s stamp law, usually on the market value or the consideration, whichever is higher.
- An agreement to sell does not create an interest in the property (Section 54).
The law: old and new provisions
| Subject | Law now | Before 1 July 2024 |
|---|---|---|
| Sale of immovable property | Section 54 Transfer of Property Act, 1882 | — |
| Compulsory registration | Section 17 Registration Act, 1908 | — |
Which court or authority
Registered at the Sub-Registrar’s office where the property is situated.
What the document should contain
- Parties and their details
- Recitals of title and chain of ownership
- Description of the property with boundaries and area
- Consideration and mode of payment
- Delivery of possession
- Covenants: title, no encumbrance, indemnity
- Signatures, witnesses and schedule of property
Documents to attach
- Title deeds and chain documents
- Encumbrance certificate
- Mutation and property tax receipts
- Identity proof and PAN of the parties
- Approved plan or occupancy certificate (for flats)
Procedure
- Verify title and encumbrances
- Execute an agreement to sell with earnest money (optional)
- Pay stamp duty and execute the sale deed
- Register at the Sub-Registrar with two witnesses; apply for mutation
Common mistakes
- Relying on an unregistered agreement or GPA as a transfer
- Incomplete property description
- Not checking encumbrances
Frequently asked questions
What is the difference between a sale deed and an agreement to sell?
A sale deed transfers ownership once registered. An agreement to sell is a promise to sell in future; it gives a right to sue for specific performance but not ownership.
Within how many days must a sale deed be registered?
It should be presented for registration within four months of execution (Section 23, Registration Act).