PROPERTY LAW

P.S.D.A.

DRAFTING
[ SALE DEED ]

NAME: RAHUL NAIR

CLASS: 3-D
ENR. NO.: 16010303816
SUBMITTED TO: Ms. PURVA KAUSHIK

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INTRODUCTION
When it comes to buying a house, the deed of sale is one of the most important documents a person
can possess. It validates you as the owner of the property by acting as a legal proof of ownership.
The transaction is not legally valid without the buyer and seller signing the sale deed in the presence
of at least two witnesses. Governed by the Registration Act, 1908, sale deed is the most important
document for while selling or purchasing property in India.

A sale deed is a legal instrument which is executed between the seller and the purchaser which
evidences the sale and transfer of ownership of an immovable property. A sale deed is supposed to be
compulsorily registered under Section 17 the Registration Act, 1908 which mandates that all
immovable property whose value is more than Rs. 100 has to be compulsorily registered. The sale of
an immovable property is defined under Section 54 of the Transfer of Property Act, 1882 as “Sale is
a transfer of ownership in exchange for a price paid or promised or part paid and part promised”.

WHAT’S A SALE DEED?

This is a document that lists in clear detail the price, terms and conditions upon which the two parties
reached an agreement for the sale of property. The sale deed of land is drafted on a non-judicial
stamp paper of fixed value prescribed by the state government, as every state has a different value of
stamp paper when it comes to drafting sale deeds.

A sale deed is one of the most common documents which is employed for transferring ownership of
immovable property from one person to another. It is an important document which contains the
details of the manner in which the seller acquired the property, for what consideration the seller is
selling the property to the buyer and all other assurances which the seller gives to the buyer regarding
encumbrances and liabilities on the property. It acts as an essential document especially for the
purchaser as it establishes the proof of ownership of the property. A sale deed needs to be
compulsorily registered in the sub registrar’s office.

WHO PAYS?

While it is the buyer, who pays for the stamp duty and the registration charges, the seller, on his part,
ensures that all the dues regarding the property, including the loan taken for the property, the
property tax, water, and electricity bills are cleared before signing the final sale deed agreement.

It's mandatory for the sale deed draft to contain certain details, before being legalised. These include:

Type of deed: Besides selling a property, people also tend to mortgage or lease their immovable
assets, so the agreement has to mention if it's a Deed of Sale or Deed of Mortgage.

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Details of the parties involved: The sale deed agreement includes the names, residential addresses,
and age details of the parties involved, with the parties being referred to as the seller and buyer or
lessee and lessor in the agreement.

Description of the property: From the property's location to relevant details like the number of
rooms, the number of balconies, plot area and construction area among other things are mentioned in
the deed of sale.

Sale agreement: Agreed upon and signed by both the entities, a sale agreement precedes the
property deed. The agreement states that both parties agree to buy and sell the said property besides
mentioning the details of transaction like the date, advance paid, the amount due and the mode of
payment.

Transfer of title: Once the sale deed is signed by both the parties, the buyer gets the title of being
the property’s legal owner with complete rights to the property.

WHAT HAPPENS NEXT?

After the signing of the sale deed, you then proceed with the process of registration, with the deed of
sale registering the sale of the said property under the Registration Act, 1908. The parties involved
present themselves at the local sub-registrar's office with the witnesses and the documents required
and sign the property deed. Once the agreement's been signed, the certified copy of the registered
property with the name of the buyer is available at the sub-registrar's office.

However, at times when one needs to transfer the property to a loved one, one can use a quit claim
deed to transfer ownership interest. With the complete names of the transferor and the transferee
mentioned properly on the quit claim deed, it clears up any title problems regarding the property.

So, when it comes to signing a deed, it’s best to not rush into things. Make it a point to scrutinise
everything in detail as once a legal document has been signed, there’s no alternative but to take
whatever has been written as the final word on any conflicts regarding the property.

GROUNDS FOR CANCELLATION OF SALE DEED

Cancellation of sale deed is dealt under Section 31- 33 of the Specific Relief Act, 1963 which lays
down the provisions for cancellation of instruments. Cancellation of sale deed by court may happen
in the following cases:

1)  The sale deed is voidable and person in whose name it is drawn, seeks to cancel it.
2)  Execution of such sale deed may cause harm or loss to the persons involved.

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Upon cancellation of sale deed, the court sends a copy of its decree to the officer in whose office the
sale deed was registered. Further, upon cancellation of sale deed by court, the person who seeked
cancellation of sale deed must be may require the party to whom such relief has been granted, to
restore, so far as may be, any benefit which he may have received from the other party.

Partial cancellation of the sale deed is also possible under Section 32 of the Specific Relief Act but
only in situations in which the rights and obligations under the instrument are distinct and separable.

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 e-Stamp Certificate No. IN-DL__________________

SALE DEED FOR A SUM OF RS. 13,50,000/-

SCHEDULE OF PROPERTY

Single storey built-up free-hold property bearing no. 307, pocket A (having plinth area measuring
10.66 Sq. mtrs . ,) land area measuring 32.0 Sq mtrs . , sector- 30, situated in the layout plan of
Rohini Residential Scheme, Delhi.

Colony located under category :E

Colony : Rohini
Circle rate as per MCD list : 36,800/- per sq. mtr.
As per list land cost (a) : 36,800*32=11,77,600/-
Having plinth area : 10.66 Sq. Mtrs .
Construction cost (b) : 10.66 * 6410=68,331/-
As per list total cost (a+b) : 12, 45, 931/-
Use property : residential

How many storey : single storey

STAMP DUTY UNDER ARTICLE 23 OF

INDIAN STAMP ACT, @ . . . .3% ON
RS. 13, 50,000/- …Rs.40,500/-
________________________________________

TRANSFER DUTY UNDER SECTION 147 OF

DELHI MUNICIPAL CORPORATION ACT,
@3% ON Rs. 13,50,000/- …Rs.40,500/-
_____________________________________
TOTAL STAMP DUTY PAID Rs. …@...6% …Rs.81,000/-
_____________________________________

For Samrajya Interior Decorator Pvt. Ltd.

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THIS SALE DEED IS MADE AND EXECUTED AT DELHI ON THIS ___________ DAY of July,
2011, by:- M/s. Samrajya Interior Decorator Pvt. Ltd. , having its registered office at plot no. 1, 3 rd
floor, garg trade centre, sector 11, rohini, delhi through its director Mr. Samved Dhanraj son of Shri
Mukesh Dhanraj, authorised by board of directors of the company in their meeting, vide resolution
dated 19.07.2011, hereinafter called the VENDOR.

…..IN FAVOUR OF…..

Shri Gajraj Mitthal, SON OF Shri Vishrut Mitthal resident of BM-197, west Shalimar bagh , Delhi,
hereinafter called as VENDEE.

The Expressions both VENDOR AND VENDEE shall mean and include their legal heirs, successors,
legal representatives, nominees, executors and legal assignees.

Whereas the VENDOR is the actual owner and in possession of the single storey built – up free- hold
property bearing no. 307, pocket A, land area measuring 32.0 Sq mtrs . , sector- 30, situated in the
layout plan of Rohini Residential Scheme, Delhi, with the free hold rights of the land under the said
property, and which is bounded as under :-

East : Plot No. 306

West : Plot No. 308
North : Entry
South : Plot No. 318

(hereinafter called the property) , Having Purchased The Same From Smt. Sangeeta Wife Of Shri
Rajpal Singh, Vide SALE DEED Dated 11. 05. 2011, Which Is Duly Registered As Document No.
3042, In Additional Book No. 1, Volume No. 2526, on pages 108 to 113, on dated 11. 05. 2011, with
the office sub-registrar, sub-district, no. V1- B, Delhi.

For Samrajya Interior Decorator Pvt. Ltd.

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And Whereas The Said From Smt. Sangeeta Wife Of Shri Rajpal Singh, Has Purchased The Same
From Smt. Pratibha Wife Of Shri Mohan Lal , Vide SALE DEED Duly Registered As Document No.
8928, In Addl. Book No. 1, Volume No. 2346 On Pages 175 To 181, On Dated 11. 05. 2011, With
The Office Sub-Registrar, Sub-District, No. V1- B, Delhi.

And Whereas According To The Government Policy The Said Smt. Pratibha Wife Of Shri Mohan
Lal Has Applied Foe The Conversion Of Above Mentioned Property No. 307, Pocket – A, Area
Measuring 32 Sq. Mtrs. , Sector 30, Situated In The Layout Plan Of Rohini Residential Scheme,
Delhi, into free hold land rights from lease hold land rights with the office of DDA, New Delhi, and
the DDA, New DLhi, has accepted the request and has convey, transfer all the rights, title of the said
Smt. Pratibha wife of Shri Mohan Lal vide CONVEYANCE DEED Registered as document No.
18454, in addl. Book No. 1, Volume No. 3870 On Pages 86 To 88, On Dated 9.11. 2010, With The
Office Sub-Registrar, Sub-District, No. V1- B, Delhi.

And whereas the VENDOR In disposing mind, without undue influence, coercion, or fraud, or
pressure from any side and for its legal needs and bonafide requirements have agreed to sell the
above mentioned property alongwith all its right, title, fixtures, interests, fittings, connections etc…,
etc.., free hold land rights of the said property into the VENDEE and the VENDEE has also agreed to
purchase the same from the vendor for a total sale consideration amount of Rs. 13,50,000/- as full
and final settlement of the sale price on the following terms and conditions of this SALE DEED as
under:-

For Samrajya Interior Decorator Pvt. Ltd.

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THE VENDOR DOTH HEREBY COVENANT WITH THE VENDEE AS FOLLOWS:

1. That the property more fully described in the Schedule hereunder shall be quietly and peacefully
entered into and held and enjoyed by the VENDEE without any interference, interruption, or
disturbance from the VENDOR or any person claiming through or under him.

2. That the VENDOR has absolute right, title and full power to sell, convey and transfer unto the
VENDEE by way of absolute sale and that the VENDOR has not done anything or knowingly
suffered anything whereby his right and power to sell and convey to the VENDEE the property
hereby conveyed.

3. 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 VENDOR shall discharge the same from and out of his own funds and keep the VENDEE
indemnified.

4. That the VENDOR hereby declares with the VENDEE that the VENDOR has paid all the taxes,
rates and other outgoings due to Local bodies, revenue, urban and other authorities in respect of the
property more fully described in the Schedule hereunder up to the date of execution of this sale deed
and the VENDEE shall bear and pay the same hereafter. If any arrears are found due to the earlier
period, the same shall be discharged by the VENDOR

5. That the VENDOR has handed over the vacant possession of the property more fully described in
the Schedule hereunder to the VENDEE and delivered the connected original title document in
respect of the schedule mentioned property hereby conveyed on the date of execution of these
presents.

6. That the VENDOR will at all times and at the cost of the VENDEE execute, register or cause to
be done, all such acts and deeds for perfecting the title to the VENDEE in the property hereby sold
and conveyed herein.

7. That the VENDOR do hereby covenants and assures that the VENDEE is entitled to have
mutation of his name in all public records, local body and also obtain patta in the name of the
VENDEE and undertakes to execute any deed in this respect and the VENDOR submits that he is
left with no rights, titles interests or any other concern of any nature in the above said property.

8. THAT the VENDOR and VENDEE both are the citizens of INDIA.

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In WITNESSES WHEREOF both vendor and vendee have set their hands on this SALE DEED at
Delhi after understanding the contents of the same in the presence of the following witnesses on this
day, month and year first above written.

WITNESSES:-

For Samrajya Interior Decorator Pvt. Ltd.

VENDOR

VENDEE

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