Sale Deed Clauses

Sale Deed is a final document which transfer the complete rights of the seller to buyer.
The following are some of the important clauses that need to be included in the Sale Deed:

1. Parties of the Sale Deed
The details of the parties involved with the transaction must begin with a sales deed. In order to make it valid, it should bear the name, age and address of the parties (buyer and seller) involved in the transaction. The deed must be signed and executed by all parties with bona fide intent.

2. Description of the sales property
The sales deed must have a proper description of the property you plan to purchase. For example, the sales deed should have the total plot area, identification number, construction details, the exact location and surroundings. To specify the exact position of the land, the land schedule must be inserted into the selling deed.

3. Sales Agreement
This agreement states that the terms and conditions of the agreement shall be settled mutually by both the seller and the buyer so that they do not affect the rights of either party. Usually, the sales agreement is drawn up before the sale deed.

4. Clause of sale consideration
In the sales consideration clause, the amount agreed between the buyer and the seller must be included. This is the amount that the buyer agrees to pay during the execution of the sale deed to the vendor. As it was decided, the selling amount should be clearly shown on the deed.

5. Advance Payment and Payment Mode
If you have paid anything in advance to the builder or seller for booking the flat, then this should be mentioned in the sale deed clearly. The remaining amount payable must also be written in the document. The mode by which you will be paying the amount—cheque, cash or DD must be mentioned along with the consent of the seller to accept it in the form.

6. Passing of the Title
When the property title is passed on to the buyer, the sale deed should state that. A time limit for the title transfer must be given to the seller. If the title has been transferred, all associated rights are transferred to the buyer.

7. Possession Delivery
The clause in the sale deed must include details that the seller is to pass the possession of the property to the buyer after the completion of the registration process. The sale deed should specify the actual date of possession's delivery.

8. Indemnity Provision
This is mostly applicable in the case of property resale. The clause states that before the sales deed execution, the vendor shall clear all statutory charges such as power bill, property tax, water bills, maintenance charges and social charges and all other dues. If a home loan was taken from the original buyer to purchase the house, then the seller would repay the loan and get the papers back from the bank. As a conscious buyer, from the sub registrar or registrar's office, you should analyse the status of encumbrance.

9. Default Clause
Ideally, sales agreements should bear a clause that if there is any default on the part of the buyer or seller, the defaulting party must pay the non-offending party a penalty in order not to affect the execution of the sale deed.

Once the sale deed has been prepared, two witnesses from both sides must ratify it. The full addresses, signatures and names of the witnesses must be given. Each page must have the signatures of the buyer and seller.