What is a Sale Deed Act in India? Meaning, Features and Importance

Preface to the Sale Deed Act?

A Sale Deed is a legal written document furnishing substantiation of property power. It’s a type of deed that transfers the power rights of a property from the dealer( transferor) to the buyer( transferee). In other words, it’s a document that proves the transfer of property power rights from an being proprietor to a new proprietor.

A Sale Deed is generally used when the real estate is being vended and includes information about the real estate’s dealer and buyer, the description of the property, and any other material information. The document identifies all parties involved and indicates that the transfer is voluntary. A dealer’s deed is a legal document transferring the property’s power from one party to another. It’s a type of document that also verifies the voluntary transfer of the property’s power rights.

Contents of a Sale Deed Document

As per the Sale Deed Act, the contents of a Sale Deed Document

  • The names of both the parties involved in buying and dealing the property
  • The description of the property
  • The price of the property agreed upon
  • Autographs of the parties involved in the sale
  • Hand of concerned substantiation to the contract.

The Sale Deed Act in India

As per vittles of Section 54 of the Transfer of Property Act of 1882, generally known as the TP Act, a Sale is defined as the transfer of power of irremovable property for a price. still, a Sale Deed must contain the following significant rudiments to consider a valid Sale of the property. The rudiments are

a) The subject matter of the sale/ transfer, which is the property

b) The former proprietor, that is, the dealer transferring the property

c) The new proprietor who’s carrying the power title from the dealer or the transferor

d) The consideration is the sum paid or outstanding by the buyer to the dealer, which may be entirely paid, or promised to be paid, or incompletely paid and incompletely promised to be paid.

( e) The act of transferring the property power rights to the buyer from the dealer.

By the vittles of the Indian Contract Act of 1872, it’s obligatory that the parties involved in the sale of the property Sale, that is, both the buyer and the dealer, must be competent to enter into a contract. The three main points that punctuate the faculty of any party to the contract are as follows

a) They’ve reached the age of maturity;

b) They aren’t of unsound mind; and

c) They aren’t barred from entering the contract by any law or court judgment.

To be valid and enforceable, a Sale Deed must include a complete and accurate representation of both the parties involved, that is, the dealer and the buyer, as well as the subject matter, that is, the property being vended to anotherparty.However, it’s only most likely to hinder the originality of the dealer’s title, If there’s a mismatch in the description of or identity of the property. The buyer obtains a deed from the dealer to avert any unborn liability or conflicts, handed that the buyer promises to pay the consideration in part or total.

Mandatory Disclosures by the Seller to the Buyer

Though the buyer in a still, according to the vittles of Section 55 of the Transfer of Property Act of 1882, a dealer needs to mandatorily make exposures and fair representations in the document to the buyer. This would entitle the buyer with the power to apply an act in the event of a violation of the conditions specified therein. The following are the statutory information and representations that the buyer must gain from the dealer

a) The dealer who had absolute power of the property, now, after the Sale Deed document, shall entitle the power rights in favour of the buyer of the property.

b) Full exposures in case of substantial excrescencies, third- party claims or conflicts, if any, are to be made to the buyer.

c) The dealer is also needed to be competent enough to convey the property’s power title in favour of the buyer.

d) Transferring property should be restriction-free and unclaimed.

e) The dealer must transfer and hand over the title in the Deed from his guardianship to the buyer. either, the complete transfer is to be made on full damage of the consideration and handing over the physical possession of the property.

f) All government pretenses must be paid and cleared by the seller.

g) The dealer’s commitment is demanded to execute the farther paperwork that suitably safeguards the buyer’s rights during the transfer of external records and other mileage services to the buyer.

In addition to securing the representations mentioned over from the dealer, the buyer is also prompted to get remuneration in the Sale Deed from the dealer. This is substantially for the benefit of the purchaser of the property against any disfigurement in the title of the property or breach of the Sale Deed’s representations, terms and conditions.


While transferring property between two individualities is easy, it gets a little more complicated when there are multiple possessors. A Sale Deed document, thus, is one similar document that acts as an aid to this issue during the property transfer.

The Sale Deed is a handy document, especially in a disagreement. A Sale deed provides an assured position of protection and a legal way of dealing the home to a new proprietor. Hence, a Sale Deed is a must-have for any property you intend to vend because it’ll serve as a fairly binding document that provides the substantiation of true property power rights. 

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