Sale Deed

Definition

A sale deed (conveyance deed of sale) is the core legal document in a property purchase: it records the transfer of ownership from the seller to the buyer, stating the parties, property description, sale consideration, payment terms and covenants. Under Section 17 of the Registration Act, 1908, a sale of immovable property valued above Rs 100 must be registered — which in practice means every property sale deed must be registered to be legally valid; an unregistered sale deed does not transfer ownership.

It matters because registration of the sale deed is the moment ownership legally changes hands. An agreement to sell, even if registered, only creates a right to obtain a sale deed later — it does not convey title. The registered sale deed is what banks, courts, buyers and government departments treat as the primary evidence of your ownership.

The process: verify the title and encumbrances, have the deed drafted (usually by a lawyer), pay stamp duty at your state's prescribed rate (commonly in the range of about 4-7% of the property value, varying by state and sometimes lower for women buyers) plus registration charges, then present the deed at the jurisdictional Sub-Registrar's office — most states let you book slots and pay duty online through their registration (IGRS) portals, such as TNREGINET in Tamil Nadu or Kaveri in Karnataka. Both parties appear with two witnesses for biometric verification and signing, and the registered deed is returned to the buyer, with the transaction thereafter appearing in the Encumbrance Certificate.

Pitfalls: never pay the full consideration against only an agreement to sell or a general power of attorney — the Supreme Court has held GPA 'sales' do not convey title. After registration, complete mutation of municipal/revenue records, and keep the original registered deed safe: lenders hold it as security in a home loan, and it becomes the next link in the title chain when you eventually sell.

Example

On registration day, both parties met at the Sub-Registrar's office with two witnesses; once the stamp-duty-paid sale deed was registered, ownership of the flat legally passed to the buyer.

Calculators that use this

Related terms

• Agreement to Sell
• Conveyance Deed
• Title Deed
• Stamp Duty

More Real Estate terms

• Encumbrance Certificate (EC)
• Khata
• Mutation of Property
• Patta / Patta Chitta

Sources

• ClearTax — Sale deed: meaning, format and components
• India Code — The Registration Act, 1908 (Section 17)
• NoBroker — Title deed vs sale deed in India
• Rest The Case — Title deed vs. sale deed: key differences