What is sale deed? How is it different from agreement to sell?

A sale deed is a legal document that proves that a property has been transferred from the seller to the buyer. A sale deed acts as the main legal document, confirming the sale and the transfer of ownership of property from the seller to the buyer. The registration of a sale deed concludes the property purchase process.

Details in sale deed 

A sale deed usually consists of the following information:

Details of the buyers and sellers: A sale deed carries names, age details and addresses of both the buyer and the seller.

Property description: The sale deed carried complete detail of the property, including the total area, details of construction, the exact address and surroundings.

Property value: Sale deed mentions the amount for which the property is being sold.It provides the exact breakup of the payment. It mentions how much money has been paid as advance and how much paid at the time of registration. It mentions stamp duty and registration fee details as well along with  the mode of payment.

Date of delivery: The sale deed clearly mentions the date on which the seller intends to give possession of the property to the buyer. It also mentions the time frame in which the property title will be actually passed on to the buyer.

Indemnity clause: Under this clause which is invariably part of sale deed, the seller promises to pay the buyer for any damages in case of disputes with regard to the ownership, resulting in monetary losses to the buyer.

See also: All about e stamping

 

Sale deed registration

According to the Indian Registration Act, 1908, any agreement for transfer of any interest in an immovable property of value more than Rs 100, is required to be registered.  So, if you have purchased any property under any agreement for sale, without it being followed by a proper sale deed, you do not get any right or interest in the property purported to be transferred under the agreement of sale.

This absolute rule is subject to an exception provided under Section 53A of the Transfer of Property Act. Section 53A provides that where the buyer has obtained possession of the property that is subject matter of the transfer, while fully complying with his part of the obligation under the agreement, the seller shall not be entitled to disturb the possession so granted to the buyer. It may be noted that Section 53A provides a shield to the proposed transferee against the transferor and debars the transferor from disturbing possession of the transferee, but it does not cure the title of the buyer to the property. The ownership of the property still remains with the seller.

So, in the cases where you have purchased any property under a sales agreement and got possession, the title of the property still remains with the developer, unless a sale deed subsequently has been executed and registered under the Indian Registration Act. Thus, it becomes clear that a title in an immovable property can only be transferred by a sale deed. In the absence of a duly stamped and registered sale deed, no right, title or interest in an immovable property, accrue to the buyer of the property.

Documents for sale deed registration

Chain of title
Registered agreement to sell
Sales deed document
Proof of stamp duty payment
Proof of registration fee payment
Proof of TDS payment
Approved building plan
Loan documents
NOC from electricity department
NOC from pollution control board
NOC from water works department
Share certificate
No-objection certificate from RWA
Identity proof of buyer
Identity proof of seller
Identity proof of witnesses
Address proof of buyer
Address proof of seller
Address proof of witnesses

How to get certified copy of sale deed?

The sub-registrar’s office is responsible for property registrations and maintaining these records till eternity. One can get a certified copy of the sale deed by applying with the sub-registrar of the area concerned.

 

Can a sale deed be cancelled?

A sale deed can be cancellation if the seller and the buyer have an agreement to this effect. Sections 31 to 33 of the Specific Relief Act, 1963, specify the conditions under which a sale deed can be cancelled. These conditions include:

• The deed should have been registered under the Indian Registration Act, 1908.
• The individual feels that the deed is voidable or has a doubt that such a deed will cause him injury, if left outstanding.

 

Things to remember when executing a sale deed

• Make a check list of documents you must have.
• Keep copies of all the documents along with originals.
• Don’t forget to carry pen, pencil, eraser, stapler, adhesive, additional photos, etc., when you go for sale deed registration.
• It would be appropriate to keep the day for this task itself. This is a time-taking procedure all said and done.

 

What is sale agreement?

Sale agreement is signed between the buyer and the seller once they reach a verbal agreement about property sale. A sale agreement mentions the terms, conditions and other crucial aspects of the future sale.

The Transfer of Property Act, 1882, which regulates matters dealing with the sale and transfer of house property, defines the contract for sale or an agreement for sale as under:

“A contract for the sale of immovable property, is a contract that a sale of such property shall take place on the terms settled between the parties” – Section 54. Section 54 further provides that “It does not, of itself, create any interest in or charge on such property.”

All sale agreements have to be documented and registered to have a legal validity.  Passing its order the Balram Singh versus Kelo Devi case on September 23, 2022, the Supreme Court has ruled that an unregistered agreement to sell is not admissible as evidence in a permanent injunction suit.

 

Components of a sale agreement

Name of buyer
Name of seller
Details of property
Transaction value
Breakup of payment
Period within which the sale must be completed
Terms and condition of the sale
Responsibilities of the buyer
Responsibilities of the seller

 

Agreement for sale versus sale deed

Sale deed	Agreement for sale
Sale deed is an actual transfer of property ownership	Sale agreement is a promise of a future transfer of property ownership
Sale deed includes information about both the parties (buyer & seller), their ages, addresses and other details	Sale agreement specifies the terms and conditions under which the property will be transferred
Sale deed gives the rights and interests in the property to the new owner.	Sale agreement gives a right for the purchaser to purchase the property in question on the satisfaction of certain conditions.
Buyer has to pay stamp duty and registration fee to execute a sale deed	Sale agreement precedes sale deed, signed and executed by the seller and buyer on a non-judicial stamp paper.

See also: All about carpet area

 

Can a sale agreement be cancelled?

Yes, a sale agreement can be cancelled too, if one party has failed to honour the commitments made in the sale agreement. If the erring party is the seller, the buyer can demand cancellation and seek damages. Similarly, if the buyer flouts the rules mentioned in the sale agreement, the seller can seek cancellation of the agreement and demand damages.

 

Sale deed formats

 

Land sale deed format

 

This DEED OF SALE is made and executed on this _______ day of ______________,

BETWEEN

Sri ____________________, son/wife/daughter of Sri/Late _______________, aged about _______ years, holding PAN _____________, by Caste ________, by Nationality Indian, residing at _____________________________________________,                                                                                                     hereinafter called the “SELLER” (which expression shall mean and include his legal heirs, successors, successors-in-interest, executors, administrators, legal representatives and assigns) of the ONE PART.

AND

Sri __________________________________, son of  _______________________,                                aged about _______ years, by Caste __________, by Nationality Indian,  holding PAN _____________, residing at _____________________________________________,                                                                                                        hereinafter called the “PURCHASER” (which expression shall mean and include his legal heirs, successors, successors-in-interest, executors, administrators, legal representatives and assigns) of the  OTHER PART.

The  SELLER and the PURCHASER are hereinafter referred collectively as parties and individually as party.

 

WHEREAS the SELLER is the absolute owner, in possession and enjoyment of the piece and parcel of ______ land measuring about ____ decimal, lying and situated in R.S. Plot Number ____, corresponding L.R. Plot Number ____, Recorded in R.S. Khatian Number _____ and L.R. Khatian Number ____, at Mouza _____, J.L. Number _____, Touzi Number ______, under Police Station __________, Registration Sub-District _________, in the district of ________________, more fully and particularly described in the schedule here under written and hereafter referred to as the “SCHEDULE PROPERTY”.

ANDWHEREAS the SCHEDULE PROPERTY was the self acquired property of  __________, deceased father of the SELLER and he purchased the same from Sri __________________, son of _____________ of _________________________________, by virtue of a Sale Deed dated ________________, registered in the office of the _____________________________, in Book 1,  Volume No. ____, Pages ____ to _____, Being Number ___________ for the Year _____.

ANDWHEREAS the said _________ died in-estate on _________ leaving behind his only son namely, Sri _______________, the SELLER herein, as the only legal heir.

ANDWHEREAS the SELLER herein, as the only legal heirs of the deceased ____________, have become the absolute owner of the SCHEDULE PROPERTY since the death of his father _____________ on and he has been enjoying the same with absolute right, title and interest sice then and he has clear and marketable title to the SCHEDULE PROPERTY.

ANDWHEREAS the SELLER being in need of funds to meet his personal commitments and family expenses have decided to sell the SCHEDULE PROPERTY and the PURCHASER has agreed to purchase the same.

ANDWHEREAS the SELLER agreed to sell, convey and transfer the SCHEDULE PROPERTY to the PURCHASER for a total consideration of  Rs._________ (Rupees                        ___________________________) only and the PURCHASER herein agreed to purchase the same for the aforesaid consideration and to that effect the parties entered into an agreement on the _________________ .

NOW THIS DEED OF SALE WITNESSETH:

1. THAT in pursuance of the aforesaid agreement and in consideration of a sum of Rs._________ (Rupees ___________________________) only received by the SELLER in cash/cheque/bankdraft and upon receipt of the said entire consideration of Rs._________ (Rupees                        ___________________________) only (the SELLER doth hereby admit, acknowledge, acquit, release and discharge the PURCHASER from making further payment thereof) the SELLER doth hereby sells, conveys, transfers, and assigns unto and to the use of the PURCHASER the SCHEDULE PROPERTY together with the water ways, easements, advantages and appurtenances, and all estate, rights, title and interest of the SELLER to and upon the SCHEDULE PROPERTY TO HAVE AND TO HOLD the SCHEDULE PROPERTY hereby conveyed unto the PURCHASER absolutely and forever.
2. THAT THE SELLER DOTH HEREBY COVENANT WITH THE PURCHASER AS FOLLOWS:
   1. That the SCHEDULE PROPERTY shall be quietly and peacefully entered into and held and enjoyed by the PURCHASER without any interference, interruption, or disturbance from the SELLER or any person claiming through or under him.
   2. That the SELLER have absolute right, title and full power to sell, convey and transfer unto the PURCHASER by way of absolute sale and that the SELLER have not done anything or knowingly suffered anything whereby their right and power to sell and convey the SCHEDULE PROPERTY to the PURCHASER is diminished.

• That the property is not subjected to any encumbrances, mortgages, charges, lien, attachments, claim, demand, acquisition proceedings by Government or any kind whatsoever and should thereby and the SELLER shall discharge the same from and out of his own fund and keep the PURCHASER indemnified.

1. That the SELLER hereby declares with the PURCHASER that the SELLER have paid all the taxes, rates and other outgoings due to local bodies, revenue, urban and other authorities in respect of the SCHEDULE PROPERTY up to the date of execution of this sale deed and the PURCHASER shall bear and pay the same hereafter. If any arrears are found due for the earlier period, the same shall be discharged/borne by the SELLER.
2. That the SELLER have handed over the vacant possession of the SCHEDULE PROPERTY to the PURCHASER on ___________ and delivered the connected original title document in respect of the SCHEDULE PROPERTY hereby conveyed on the date of execution of these presents.
3. That the SELLER will at all times and at the cost of the PURCHASER execute, register or cause to be done, all such acts and deeds for perfecting the title to the PURCHASER in the property hereby sold and conveyed herein.

• That the SELLER do hereby covenants and assures that the PURCHASER is entitled to have mutation of his name in all public records, local body and also obtain all documents in the name of the PURCHASER and undertakes to execute any deed in this respect.

SCHEDULE  OF PROPERTY

All that piece and parcel of _____ land measuring about _____ decimal, lying and situated in R.S. Plot Number ____, corresponding L.R. plot Number ____, Recorded in R.S. Khatian Number ____ and L.R. Khatian Number ____, at Mouza _____, J.L. Number ____, Touzi Number _______, under Police Station ______, Registration Sub-District ______, in the district of ____________, butted and bounded by:

On the North   :

On the South   :

On the East     :

On the West    :

             IN WITNESS WHEREOF the SELLER and the PURCHASER have set their signatures on the day month and year first above written.

                                                            ______________________________           

                                                                                  SELLER

                                                            ______________________________

                                                                                PURCHASER

WITNESSES:

1.

 

2.

 

 

DEED OF SALE OF FLAT

 

This DEED OF  SALE  is made and executed at ______ on this _______ day of ______________, Two Thousand _______

BETWEEN

………. ,PAN NUMBER………. ,EPIC/Passport /OCI/CIO/PIO No………., Adhar No………..  son / wife  / daughter of    ……….  residing at ……………..by faith…………… , by Occupation …………. , by Nationality……………….,

Herein after referred to and called as the “OWNER(S)/ VENDOR(S) ”

AND

 

 

 

…………..…PAN-………, having place of business at ………, represented by its Partner(s) ……………….son / wife / daughter of ……….,  residing at ……….  by faith

….., by Occupation ….., by Nationality  ….. ,  hereinafter referred to and called as the ‘DEVELOPER ( s) ’

 

                                                                 AND

………. PAN NUMBER, EPIC/Passport /OCI/CIO/PIO No………., Adhar No………..   ………..  son / wife  / daughter of    ……….  residing at ……………..by faith…………… , by Occupation …………. , by Nationality……………….,

Herein after referred to and called as the “CONFIRMING PARTY (IES) ”

 

 

AND

………. PAN No……., EPIC/Passport /OCI/CIO/PIONo………., Adhar No………..    son / wife  / daughter of    ………. residing at ……………..  by faith…………… , by Occupation …………. , by Nationality………………., hereinafter  referred to and called as the “Purchaser ( S )

 

( The Vendors / Purchaser(s)  is / are being represented by his/her/their Constituted Attorney (s)  …..  PAN No……, EPIC/Passport /OCI/CIO/PIO No………., Adhar No………..   son/ wife/ daughter of ……, residing at ……….,   by faith ………., by Occupation ………., by Nationality ……….,  by Constituted General/Special Power of Attorney dated ………., /by Authenticated General/Special Power of Attorney  being No …dated ……….of the office of the……..  )

[for and on his/her behalf the representative / nominee / guardian / ward ( as the case may be) (with all additions),  Order or Permission No. ………………..  Date …………………. (as the case may be)] / [Name of the Government  / Organisation / Institution / Company / Firm / Trust / Society (as the case may be) with  place of its headquarters and for and on its behalf the / its …………………………. (Designation of the post held),  …………………………………… (Name of the person holding the post

or having the designation with all additions)]

 

The expression of the Vendor & Purchaser shall mean and include the parties itself, their respective legal heirs, executors, successors, administrators, legal representatives and assigns / nominees.

Whereas the Vendor for his bonafide needs and legal requirements, in his sound and disposing mind without any pressure, force, compulsion or coercion has agreed to sell and transfer the said property unto the Purchaser for a consideration value of Rs ………..

For which the Purchaser after scrutinizing the status of the property and also being satisfied regarding the title of the Vendor has agreed to purchase the same against the said consideration.

 

History of the ownership of the property

 

TYPING OPTION

 

NOW THIS DEED WITNESSETH AS UNDER:-

1. That in consideration of Rs ………….… the entire amount has been received by the Vendor from the Purchaser prior to the execution of this sale deed, the receipt of which is hereby admitted and acknowledged by the Vendor.
2. That the Vendor hereby sells, conveys and assign the property absolutely and forever with all rights, title and interest of the same, unto the Purchaser who shall hereafter be the absolute owner of the same and enjoy all rights of ownership etc.

 

3. That the actual physical possession of the said property has been handed over by the Vendor to the Purchaser who is in possession of the same at the time of registration of this sale deed.

 

4. That all taxes, charges, dues, demands, arrears, electricity charges, water charges, outstanding bills, house tax, development charges etc if any, in respect of the said property for the period prior to the date of execution of this sale deed shall be paid and borne by the Vendor and thereafter the same shall be paid and borne by the Purchaser.

 

5. That the Vendor hereby agrees and assures the Purchaser to help and assist him in getting the property  transferred/mutated  in  the  relevant   department  and any other  concerned  department  and/or  the Purchaser shall have full right to get the property transferred/ mutated in his/her own name from the concerned department on the basis of this Sale Deed even in the absence of the Vendor.

 

6. That all right and easements attached with the said property have also been conveyed and transferred with the said property, unto the Purchaser.

 

7. That the Vendor has assured and delivered to the Purchaser that the said property under sale is free from all sorts of encumbrances such as Sale, Mortgage, Gift, Transfer, decree, litigation, lease, acquisition/ notification etc. and there is no defect in the title of the Vendor and if it is proved otherwise at any time and the Purchaser suffers any loss, then the Vendor shall be fully liable and responsible for the same and the Purchaser shall be entitled to recover all his/her losses from the

 

8. That the Purchaser shall have full right to apply and get the Water, Electric and  Sewerage  connection  regarding  the  said  property  from  the  concerned authorities and also to get the existing name changed in his/her own name from the department concerned without any written consent of the Vendor.

 

9. That the Vendor has delivered the previous title documents relating to the said property.

 

• That the Vendor hereby declares and assures to the Purchaser that the
  said property has not been acquired by the Govt. and there is no
  injunction or attachment order of any Court or Department.

 

• . That the market value of the property is Rs……………………. All facts
  relating to its market value, consideration and chargeability to stamp
  duty and transfer duty have been fully given in the sale deed and
  mentioned Schedule B of this sale deed .

 

12. Any other points to specify

 

 

 

THE SCHEDULE “A”

              (DESCRIPTION OF THE ENTIRE PROPERTY)

 

ALL THAT piece and parcel of ………………… land measuring about ………… Cottahs ……………. Chittacks ………….. sq. ft. more or less land, along with the Complex named ……………having   G + …………..Building lying and situated at Mouza-…………., Pargana–………………., J.L. No………….. , Re Su No.-…………………  Touzi No…………comprising in R.S. Dag No.-……………………, under R.S. Khatian No.-…………….., corresponding to LR Plot No………….   and LR Khatian No……….. , having Municipal Holding No………………….., Road Name ……………… , being Premises No.-……………. ,  PIN-………………, under Ward No.-……………… within the limits of ……………….Municipality / Municipal Corporation, within the office of ………………….. P.S.-………………  District-……….., and butted and bounded by: –

 

ON THE NORTH BY: –

ON THE SOUTH BY: –

ON THE EAST BY: –

ON THE WEST BY: –

 

 

 

THE SCHEDULE ”B” ABOVE REFERRED TO –

[Description of the Flat/Unit]

ALL THAT piece and parcel of a demarcated self-contained residential / semi commercial /office / commercial  Flat/ covered garage / open garage  being No.………….. on the …………Floor, in Block-…………., having measurement of …………….. sq. ft. Super built up area more or less comprising of ………………………….., with ……. Flooring , from Developer’s Allocation within the G Plus………. Building,  of age years …….,  the property being tenanted / not tenanted , the property being litigated with pending Title suit No ……………for year …….lying in The Court of ………/ not litigated , within the Complex named ……………….. together with undivided proportionate share of underneath land and other common amenities and facilities including easement and quasi-easement rights along with restrictions and reservations as stated aforesaid as attached with the Multi-storied Building  within the said Complex at Municipal Holding No.-………….. , Road , …………………. Being  Premises No.-…………., Road……… , Pin ………, under Ward No.-………. , within the ……………Municipality / Municipal Corporation, under the office of ………. ,under P.S.- ………………., District-………….. fully described “A” SCHEDULE herein above written.

 

 

 

Annexed Plan marked with Red Border will be treated as part and parcel of this Deed.

UPLOAD the SKETCH MAP

 

 

– THE SCHEDULE “C”ABOVE REFERRED TO –

[The Common portions]

1.Entrance and exists internal roads, and footpath.

2. Common durwans / caretaker room , Caretaker Room, Security Camera Room, (if any).

 

3. Boundary walls and main gates.
4. Drainage and sewerage lines and other installations for the same (except only those as are installed within the exclusive are of any unit and/or exclusively for its use).
5. Staircases lobbies on all the floors and vacant area of the ultimate roof of the proposed building (Roof right will not be available for Garage, Shop and Godown owners, but rights attached to the Ground Floor will be available only).
6. Tube well and water supply system, water pumps, water pump rooms, overhead tank, septic tank together with all common plumbing installation for carriage of water (save only those as are

exclusively within for the use of any unit.) , community Hall and two wheeler parking space

7. Lighting fixtures and fittings in common area from common use.

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands and seals after understanding the contents of this Deed of conveyance  on the day, month and year first above written.

                                                            ______________________________ 

                                                                Signature of the Vendor  / developer(s )

                                                            ______________________________

                                                             Signature of the Purchaser (S)

WITNESSES :

SIGNED, SEALED AND DELIVERED

by the Parties at ___________ in the presence of :

1.

2

Drafted by me:

 

 

MEMO OF CONSIDERATION

 

RECEIVED of and from the Purchaser…………..the sum of Rs……………(Rupees………………..)   herein above towards the full consideration of the property.

 

D.D/Pay Order  No.	Date	Bank	Amount
………..	………	………….	Rs………….
Total :			Rs………….

 

 

 

 

                                                       ……………………………………………………….

                     SINGATURE OF DEVELOPER / VENDOR/ CONFIRMING PARTY

( NB: The amount received by Vendor , Developer and confirming party should be mentioned separately)

 

Witnesses:

1.

 

2.

 

Sale agreement format 

THIS AGREEMENT for SALE executed on the…………………. day of………………. 2021

between (name of seller) son of …………,, resident of…………………., hereinafter called the “Vendor” of the one part and (name of buyer), son of …………, resident of…………………. hereinafter called the “Purchaser” of the other part.

WHEREAS the vendor is the sole and absolute owner of the property more fully set out in the Schedule hereunder:

AND WHEREAS it is agreed that the vendor shall sell and the purchaser shall purchase the said property for the sum of Rs………………….. (Rupees in words) free of all encumbrances.

 

NOW THIS AGREEMENT OF SALE WITNESSES AS FOLLOWS:

1. The price of the property more fully set out in the Schedule is fixed at Rs…………………..(Rupees………………….) free of all encumbrances.
2. The purchaser has paid to the vendor this day the sum of Rs………………….(Rupees………………….) by way of earnest money for the due performance of the agreement, the receipt of which the vendor doth hereby admit and acknowledge.
3. The time for performance of the agreement shall be…………………. months from this date, and it is agreed that time fixed herein for performance shall be the essence of this contract.
4. The purchaser shall pay to the vendor the balance sale price of Rs…………. (Rupees…………………………………………………) before registration of the sale deed.
5. The vendor agrees that he will deliver vacant possession of the property to the purchaser before registration of the sale deed.
6. The vendor shall execute the sale deed in favour of the purchaser or his nominee or nominees as purchaser may require.
7. The vendor shall hand over all the title deeds of the property to the purchaser or his advocate nominated by him within………………. days from the date of this Agreement for scrutiny of title and the opinion of the vendor’s Advocate regarding title of the property shall be final and conclusive. The purchaser shall duly intimate the vendor about the approval of the title within……………. days after delivering the title deeds to him or his advocate.
8. If the vendor’s title to the property is not approved by the purchaser, the vendor shall refund to the purchaser the earnest money received by him under this Agreement and on failure of the vendor to refund the earnest money within…………………. days he shall be liable to repay the same with interest thereon at…………………. per cent per annum.
9. If the purchaser commits a breach of the Agreement, he shall forfeit the earnest amount of Rs…………………. (Rupees………………….) paid by him to the vendor.
10. If the vendor commits a breach of the Agreement, the vendor shall not only refund to the purchaser the sum of Rs…………….. (Rupees………………….) received by him as earnest money, but shall also pay to the purchaser an equal sum by way of liquidated damages.
11. Nothing contained in paras 9 and 10 supra shall prejudice the rights of the parties hereto, to specific performance of this Agreement of sale.

(Schedule of Property)

IN WITNESS WHEREOF the vendor and the purchaser have set their hands to the Agreement of sale on this the………………day of…………………. 2021 in the presence of the witnesses:

Witness: Vendor

Witness: Purchaser

 

Specimen Schedule of the Property

1. Municipal No/ward no/plot no/khasra no
2. Location: Street number, name
3. Place/Area: North, South, East,West
4. Sub-District Hqrs./Tehsil/Mandal:
5. Police Station
6. District/State
7. Measurement of all sides
8. Plinth area/floor area
9. Carpet area
10. Fixtures 
11. Permitted use of the land/building:

 

Housing.com viewpoint

Even though land and property are immovable assets, their ownership can only be established through documentary proof: mere possession is not enough. This becomes extremely important in case of a dispute related to property. Sale deed is a highly important document that helps the actual owner prove their ownership in the court of law in case of any contention, and even otherwise too. Its registration and safe keeping is not only highly recommended but also mandatory.

 

Latest update

District registrars don’t have power to cancel sale deed: Madras High Court

Neither the district registrar nor the inspector general of registration are vested with powers to cancel a sale deed executed by following the procedures as contemplated under the Registration Act, the Madras High Court has said.

The remedy for an aggrieved person is to approach a competent civil court of law and seek cancellation of the sale deed or to appeal for declaring it as null and void, it added while passing its judgment in the Netvantage Technologies Pvt Ltd versus The Inspector General of Registration and Stamps and Others

However, in its order dated March 20, 2024, the two-Judge Bench of Justice SM Subramaniam and K Rajasekar said: “If the district registrar finds that there is a prima facie proof to establish fraud or impersonation while conducting a summary enquiry, then alone the document is to be cancelled.”

“But, in respect of any iota of doubt on the prima facie case, the district registrar is not empowered to adjudicate the issues on merits and is bound to relegate the parties to the civil court of law for adjudication,” it added.

Sale agreement with minor not valid: SC

Contracts entered into by minors have no enforceability in the eyes of the law, the Supreme Court has reiterated. The apex court made this observation while upholding an order of the Madurai Bench of the High Court (HC) of Madras, in which the HC had said a sale agreement entered into a minor had no legal sanction.

For the uninitiated, the parties must be competent to contract for an agreement to become a contract under the provisions of the Contract Act, 1872. Under the law, the age of majority is a condition for competency.

While dismissing the plea of one Krishnaveni, the apex court said: “There is no dispute on the contention raised by the defendants in the suit that the appellant was a minor at the time of the said agreement dated 03.09.2007. Therefore, such contract with a minor, was rightly found to be a void contract by the (Madra) High Court.

Agreement to sell doesn’t transfer ownership rights or confer title: SC 

An agreement to sell is not an instrument that can transfer ownership of property neither does it confer any title, the Supreme Court has ruled. “The agreement to sell is not a conveyance; it does not transfer ownership rights or confer any title,” a Bench of Justices Vikram Nath and Rajesh Bindal said in its order.

This observation was made by the apex court while allowing an appeal filed by one Munishamappa against a Karnataka High Court order in which it had dismissed the suit for specific performance of a contract in second appeal by respondents M Rama Reddy and others.

In this case the appellant and the respondent signed a sale agreement in 1990, following which the possession of the property was also given. However, since there was a prohibition on the sale of the property due to bar contained in Section 5 of the Karnataka Prevention of Fragmentation and Consolidation of Holdings Act, 1996, no sale deed was executed. After this law was repealed on February 5, 1991, the appellant requested the respondents to execute the sale deed. The latter refused the request.

Sale agreement, lawful possession of property protect buyers’ right: SC

Read full coverage here.

 

Stamp duty on sale deed and agreement to sale

Since land is a state subject, states have the power to levy stamp duty and registration fee on sale deeds as well as agreements to sell. Registration of both the documents is must under the provisions of the Registration Act.

While stamp duty is typically higher on sale deed registrations, it is comparatively lower in case of an agreement to sell. In Delhi, for instance, the stamp duty on sale agreement is 5.5% for men as against 6% on sale deed.

Some states like Uttarakhand levy the same rate on stamp duty and agreement to sell documents.

 

FAQs

What is agreement for sale?

An agreement for sale, is an agreement to sell a property in future. This agreement specifies the terms and conditions, under which the property in question will be transferred.

What is sale deed?

The sale deed is the main legal document by which a seller transfers his property right to the purchaser, who then acquires absolute ownership of the property.

What is the difference between agreement for sale and sale deed?

An agreement for sale is a promise in future, that the property will be transferred to the rightful owner while sale deed is the actual transfer of property ownership to the buyer.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected]