Let’s first discuss the steps in buying a property. When purchasing a property, the first step is negotiating the price with the seller. Once you have negotiated the price and as a buyer, you are okay with it then you have to pay an advance to confirm the booking (a 10% deposit paid and a booking form signed in case the property is purchased from a builder). Then buyer and seller get into an agreement to sell, which also includes terms and conditions, and the time period in which money is paid (generally 2-3 months for ready-to-move-in properties, plots, or land). But this is not a sale deed. When the entire amount involved in the transaction is paid, then comes the sale deed. Then the ownership rights are transferred from the seller to the buyer. It is valid when it is registered with a specific state authority.


A sale deed is a legal and final document used to transfer ownership of a property. It describes the terms and conditions of the sale and it is signed by both the buyer and seller. A sale deed may also be called a purchase deed or sales-mortgage deed, depending on their purpose. A sale deed is governed by Common Law, Contracts Act, Transfer of Property Act, etc. It uses certain terms that are standard across all jurisdictions, but certain details relate more specifically to the Indian context such as consideration (usually the same as the amount paid).


Protects Parties – A well-drafted deed will help protect both the buyer and the seller by preventing ambiguity and minimizing legal risks.

Defines The Area – Buyers find it helpful to have a well-defined description of the property they are purchasing, including the square feet and located on the paper.

A sale deed is a legal document that concludes a sale. It is enforceable by law.


Details of the party – The details of the party include the names and ages of both buyers and sellers, as well as their addresses.

Details of the property The location of the property, the description of the property which includes details such as the area of the property and construction details.

Payment details – Payment details will show you the price of your property, which has already been paid for ( advance payment of the property), and the date of payment. It also lists the mode of payment like a credit card (Visa, MasterCard, Discover) or direct transfer from a bank account to the specified account number. 

Handing over the original papers of the property and the possession details.

No dues on the property – On the property, no dues, such as loans, tax, liability, and other dues.

Indemnity clause –  An indemnity clause in a sale deed provides protection for the buyer’s interests. It must be drafted with care to avoid future disputes. Indemnity clauses under the sale deed seek compensation from the seller should there be any losses or expenses in the future.


Draft sale deed – To execute a sale deed, you need to first draft a sale deed. This document records all of the property owner’s rights, duties, and interests in the property. This includes details like encumbrances, liens, loans, taxes, and mortgages on the property as well as deeds to neighboring properties if they are not owned by the same entity.

Pay Stamp Duty – Stamp duty is a tax paid to the government of India when he or she sells a property. It is generally paid by the buyer and varies from state to state. For more details see our detailed video on stamp duty.

Signed – Both buyer and seller must sign the sales deed. This document ensures that they have both agreed to the terms of the sale transaction. The deed must be formally registered within four months of the date it was signed in order for it to be valid.

Registered – A sale deed serves as both proof of ownership and an essential legal document required for taxation purposes. It is an affidavit signed by both the seller and buyer. This is submitted to the revenue department when registering property under several tax laws. It must be registered within 4 months of signing the document. If this deadline is exceeded, you risk losing your right to purchase the property.

The seller gives the original documents – The seller delivers the original documents, and the buyer pays the necessary amount in order to execute the sale deed.