SALE DEED
(Bainama)
An absolute sale of a freehold built residential property
Jurisdiction for which this deed is drawn: __________
Sale consideration: __________
Collector rate value of the Property: __________
Value on which stamp duty has been charged: whichever of the two amounts above is higher
Stamp duty paid: __________
Registration fee paid: __________
READ THIS BEFORE THE DEED IS PRINTED OR PRESENTED. This deed is drawn for __________ and for a freehold property only. Exactly one set of local clauses must appear below — the Punjab set or the Chandigarh set — and it must be the set for __________. Those clauses are: the line naming where the Property lies, the public-record recital, the duty-and-fee paragraph at the end of clause 3, the local title covenants at the end of clause 7, the record-transfer paragraph in clause 10, the registering-office paragraph at the end of clause 13, the local-law paragraph at the end of clause 17, and the execution note at the end of this deed. If both sets have printed, or neither has, then the wrong location field was filled in above, the deed is wrong on its face, and it must not be signed or presented for registration until it is redrawn.
This SALE DEED is executed at __________ on __________.
BETWEEN
1. __________, __________, aged about __________ years, PAN __________, resident of __________
hereafter called the "Seller"
AND
1. __________, __________, aged about __________ years, PAN __________, resident of __________
hereafter called the "Buyer"
The Seller and the Buyer are together called the "Parties".
In this deed, the word "Seller" means the person named above and, where more than one person is named, all of them together and each of them individually; the word "Buyer" is to be read in the same way. Both expressions include the heirs, legal representatives, executors, administrators, successors and permitted assigns of the persons named.
RECITALS
A. The Property. The Seller is the absolute, lawful and exclusive owner in peaceful possession of the __________ bearing __________, situated at __________, more particularly described in the Schedule at the end of this deed and called the "Property" in this deed.
B. How the Seller came to own it. The Seller derives title to the Property as follows: __________
C. Tenure. The Property is held on a freehold basis. It is not held on lease from Government or from any authority, no reversion in the Property is outstanding in anybody, and no ground rent or lease rent is payable in respect of it. This deed is drawn only for a property of that description.
D. Possession and enjoyment. Since acquiring the Property the Seller has been in quiet, peaceful, continuous and uninterrupted possession and enjoyment of it as absolute owner, paying all taxes and outgoings, without any interference, obstruction or claim from any person.
E. Free from encumbrance. The Property is free from every kind of encumbrance, charge, lien, mortgage, gift, exchange, lease, tenancy, licence, attachment, injunction, court decree, notice of acquisition or requisition, prior agreement to sell, will, family arrangement, trust, or claim of any third party of any nature, except as expressly disclosed in this deed.
F. The bargain. The Seller has agreed to sell, and the Buyer has agreed to purchase, the Property free from all encumbrances for a total consideration of __________, which the Parties have negotiated at arm's length and which they confirm is the full and true price for the Property.
G. Statement of value. The Collector rate value of the Property is __________. Stamp duty on this deed has been charged on whichever of that value and the consideration is higher, and the Parties have set out truly all facts affecting the chargeability of this instrument as required by section 27 of the Indian Stamp Act, 1899.
FURTHER RECITALS
NOW THIS DEED WITNESSES AS FOLLOWS
1. Sale and transfer of ownership
1.1 In consideration of the sum of __________ paid by the Buyer to the Seller, the receipt of which the Seller acknowledges in clause 2, the Seller hereby sells, conveys, transfers, assigns, assures and makes over to the Buyer, absolutely and forever, the entire right, title, interest, share, claim, benefit and ownership of the Seller in the Property described in the Schedule, together with everything set out in clause 4 — TO HAVE AND TO HOLD the Property to the Buyer as absolute and exclusive owner, free from all encumbrances.
1.2 This is an out-and-out absolute sale of a freehold property. Nothing is reserved to the Seller. The Seller retains no right of re-purchase, re-conveyance, redemption, residence, occupation, use or entry, and no condition, restriction or reversion attaches to the Property in favour of the Seller.
1.3 From the date of this deed the Seller ceases to have any right, title, interest, claim, demand or concern of any kind in the Property, and the Buyer is entitled to hold, possess, occupy, use, enjoy, let out, mortgage, gift, exchange, sell or otherwise deal with and dispose of the Property as absolute owner, and to have the Property mutated, transferred and recorded in the Buyer's name in every public and private record.
2. Consideration and its receipt
2.1 The total sale consideration for the Property is __________.
2.2 The consideration has been paid as follows: __________
2.3 Acknowledgement of full payment. The Seller acknowledges having received the whole of the sale consideration of __________ and confirms that not one rupee of it remains unpaid or outstanding. The Seller accordingly confirms that no charge for unpaid purchase money under section 55(4)(b) of the Transfer of Property Act, 1882 subsists or will be claimed over the Property, and that the Seller has no lien, right of retention or claim of any kind against the Property or the Buyer for any part of the price.
2.4 No cash. The entire consideration has been paid and received through banking channels. The Parties confirm that no part of the consideration or of any advance has been paid or received in cash in contravention of section 269SS or section 269ST of the Income-tax Act, 1961.
3. Stamp duty and value
3.1 The consideration stated in this deed is the full, true and actual price agreed between the Parties, and the Property has not been undervalued.
3.2 Stamp duty has been paid before the execution of this deed, as required by section 17 of the Indian Stamp Act, 1899, on whichever is higher of the consideration and the Collector rate value stated in Recital G.
3.3 If the registering officer or the Collector determines under section 47-A of the Indian Stamp Act, 1899 that the Property has been undervalued and that further duty, penalty or interest is payable, the Buyer will bear and pay it — except where the deficiency arises from a fact wrongly stated or concealed by the Seller, in which case the Seller will bear and pay it and will reimburse the Buyer on demand.
4. What passes with the Property
The sale of the Property carries with it, and the Buyer takes, all of the following:
(a) The land on which the Property stands and the structures built on it.
(b) All fixtures, fittings and things permanently attached to the Property, including doors, windows, grills, shutters, flooring, wall panelling, sanitary ware, plumbing, overhead and underground water tanks, pumps, wiring, switchboards and light points.
(c) All rights of way, easements, and rights to water, light, air, drainage, sewerage, passage and support, whether existing or in the nature of easements, belonging to or enjoyed with the Property.
(d) All rights in the common areas, facilities and amenities of the building or the colony attaching to the Property, and all rights, benefits, privileges and advantages appurtenant to the Property.
(e) All security deposits lying with the electricity, water and other utility providers in respect of the Property, which stand transferred to the Buyer without further payment.
5. Delivery of possession (kabza)
5.1 __________.
5.2 The Buyer has inspected the Property and is satisfied with its physical condition, area, boundaries, construction and the title of the Seller.
6. Handing over of title deeds
6.1 In discharge of the Seller's duty under section 55(3) of the Transfer of Property Act, 1882, the Seller has today handed over to the Buyer the original documents of title and the records relating to the Property listed here, and the Buyer acknowledges receiving them: __________
6.2 If any further document of title relating to the Property is found later in the possession or power of the Seller, the Seller will hand it over to the Buyer without demand and without charge.
7. The Seller's covenants for title
The Seller declares, represents and covenants with the Buyer as follows, and the Buyer has entered into this transaction relying on each of them:
7.1 The Seller is the sole, absolute and lawful owner of the Property, holds it freehold, is in possession of it, and has full right, power, authority and capacity to sell and convey it to the Buyer in the manner done by this deed.
7.2 The Seller's title to the Property is clear, marketable and free from every kind of encumbrance, charge, lien, mortgage, security interest, gift, exchange, lease, tenancy, licence, attachment before or after judgment, injunction, decree, order, notice of lis pendens, easement of any third party, prior agreement to sell, general or special power of attorney, will, trust, wakf, maintenance claim, or any other burden or claim, except as expressly disclosed in this deed.
7.3 The Seller has not entered into any agreement, arrangement or understanding with any person for the sale, transfer, mortgage, lease, gift, exchange or other disposal of the Property or any part of it, and has not executed any power of attorney in favour of any person authorising any such dealing, other than any power expressly recited in this deed.
7.4 No other person — including any co-owner, coparcener, member of the Seller's family, spouse, son, daughter, legal heir, or any person claiming under a will, succession, partition, family arrangement, adoption or benami arrangement — has any share, right, title, interest or claim in the Property. Every person having any such interest has joined as a Seller in this deed. The Property is not joint family, coparcenary or Hindu Undivided Family property in respect of which any consent, permission or share of any other person is required, and no minor or person of unsound mind has any interest in it requiring the sanction of any court or guardian.
7.5 The Property is not the subject of any suit, appeal, writ, arbitration, execution, revenue, insolvency, tax recovery or other proceeding, pending or threatened, before any court, tribunal or authority, and the Seller has received no notice of any such proceeding.
7.6 No notice of acquisition, requisition, ceiling, reservation, alignment, road widening, redevelopment or demolition has been issued, served or, to the best of the Seller's knowledge, proposed in respect of the Property by any authority.
7.7 All property tax, house tax, cess, betterment charges, conversion charges, electricity, water, sewerage, piped gas, maintenance and association dues and every other outgoing in respect of the Property have been paid in full by the Seller up to the date of this deed, and nothing is outstanding.
7.8 The construction on the Property has been carried out in accordance with the sanctioned building plan and the applicable building rules, no notice of unauthorised construction, deviation, sealing or demolition is pending or has been received, and no part of the Property encroaches on any adjoining property, public land or road.
7.9 The Property is residential and is not agricultural land. No permission, sanction, no-objection or clearance under any land reform, tenancy, land ceiling, land use or restricted transfer law is required for this sale which has not been obtained, and no restriction under any such law prevents the Seller from selling the Property.
7.10 The Property is not a religious, charitable, trust, wakf, endowment or evacuee property, and is not held under any lease, licence or allotment carrying a restriction on transfer that has not been complied with.
7.11 The Seller has disclosed to the Buyer every material defect in the Property and in the Seller's title to it that the Seller is aware of and that the Buyer could not with ordinary care discover, as required by section 55(1)(a) of the Transfer of Property Act, 1882.
7.12 The Property has not been notified as benami property, and no proceeding is pending or threatened under the Prohibition of Benami Property Transactions Act, 1988 or under the Income-tax Act, 1961 by which the Property may be attached or claimed.
7.13 Quiet enjoyment. The Buyer may from today enter upon, hold, possess and enjoy the Property peacefully and without any interruption, disturbance, claim or demand from the Seller or from any person claiming through, under or in trust for the Seller.
7.14 Further assurance. The Seller will at any time in future, at the request and cost of the Buyer, sign, execute, register and do every further document and act reasonably required to perfect the Buyer's title to the Property or to have the Property recorded in the Buyer's name, including a deed of rectification if any error of description is later discovered.
7.15 Failure of title. If the Buyer's title to the Property or to any part of it fails, or is defeated, or the Property or any part of it is lost to the Buyer by reason of any defect in the Seller's title or of any act, omission, statement or concealment of the Seller, the Seller will refund to the Buyer the whole consideration together with interest at 12% per annum from the date of this deed, and in addition will compensate the Buyer for the cost of any improvement made to the Property, for the stamp duty, cess, fees and registration fee paid on this deed, and for all losses, damages and legal costs suffered by the Buyer.
8. Indemnity
8.1 The Seller indemnifies the Buyer and will keep the Buyer indemnified and held harmless against every loss, damage, cost, expense, claim, demand, action, proceeding, penalty, tax, duty and legal charge, including reasonable advocate's fees, that the Buyer suffers or incurs by reason of:
(a) any of the declarations, representations or covenants in clause 7 being untrue, inaccurate or misleading;
(b) any defect in the Seller's title to the Property, or any claim made by any person to the Property or any part of it in respect of any period up to the date of this deed;
(c) any dues, taxes, charges, misuse charge or other liability relating to the Property for any period up to the date of this deed; or
(d) any breach by the Seller of any obligation under this deed.
8.2 This indemnity is a continuing indemnity, survives the registration of this deed, and is enforceable against the Seller and the Seller's heirs, legal representatives and estate.
9. Apportionment of outgoings
9.1 All property tax, municipal charges, maintenance, association charges, electricity, water and other outgoings in respect of the Property relating to any period up to the date of this deed are the Seller's liability and will be paid by the Seller.
9.2 All such outgoings relating to any period after the date of this deed are the Buyer's liability.
9.3 If either Party pays an amount that is the other's liability under this clause, the other will reimburse it within fifteen days of demand supported by the receipt.
10. Transfer of the public record
10.1 The Buyer is entitled to have the Property recorded in the Buyer's name in every public, municipal, utility and association record on the strength of this deed. The Seller has no objection, and will sign every application, form, affidavit, indemnity and no-objection required, and will appear before any authority if required, without any further payment.
11. The Buyer's obligations
11.1 The Buyer will pay all property tax, municipal charges, maintenance, association dues, electricity, water and other outgoings in respect of the Property for all periods from the date of this deed.
11.2 The Buyer will use the Property for residential purposes in accordance with the sanctioned use and the applicable building rules, will not carry out any addition or alteration except as permitted by those rules, and will not do anything on the Property that is a nuisance or annoyance to the neighbours.
12. Costs of this deed
12.1 The stamp duty, every cess and infrastructure fee, the registration fee, facilitation, pasting and scanning charges, and the cost of drafting this deed have been borne and paid by the Buyer, which is the ordinary arrangement between a seller and a buyer of residential property here.
12.2 Each Party bears its own advisers' fees and its own tax liability arising from this sale, including the Seller's liability to capital gains tax.
13. Registration
13.1 This deed is compulsorily registrable under section 17(1)(b) of the Registration Act, 1908, and section 54 of the Transfer of Property Act, 1882 requires the transfer of the Property to be made by a registered instrument.
13.2 The deed will be presented within four months of the date of execution as required by section 23 of the Registration Act, 1908. The Parties record that a delay of up to a further four months may be condoned under section 25 on payment of a fine of up to ten times the registration fee, and that after eight months the deed cannot be registered at all.
13.3 The Parties record their understanding that, if this deed is not registered, then under section 49 of the Registration Act, 1908 it will not affect the Property and will not be received as evidence of any transaction affecting the Property, and that ownership of the Property will not pass to the Buyer.
14. Entire agreement
14.1 This deed records the whole of what has been agreed between the Parties about the sale of the Property.
14.2 No earlier promise, assurance, understanding or correspondence, whether oral or written, has any effect unless it is written in this deed. Nothing in this clause limits any liability of the Seller for a false statement made to induce the Buyer to purchase.
14.3 No change to this deed is effective unless it is in writing, signed by both Parties, and — where the change affects the title, the Property or the consideration — registered.
15. Severability
If any clause of this deed is held to be invalid or unenforceable, that clause will be severed to the extent of the invalidity and the rest of this deed will continue in full force. The operative sale in clause 1 is not severable.
16. Notices
Any notice under this deed must be in writing and sent by registered post with acknowledgement due, by speed post, or by courier to the address of the receiving Party written at the beginning of this deed, or to any later address that Party has notified in writing. A notice sent by e-mail is valid additionally, but not by itself. A notice is treated as received on the date of delivery, or on the seventh day after posting, whichever is earlier.
17. Governing law and jurisdiction
17.1 This deed is governed by the laws of India, and in particular by the Transfer of Property Act, 1882, the Registration Act, 1908, the Indian Stamp Act, 1899 and the Indian Contract Act, 1872.
17.2 Subject to the local-law paragraph below, the courts at __________, within whose jurisdiction the Property is situated, will have jurisdiction over any dispute arising out of or relating to this deed or the Property.
18. Interpretation
18.1 Headings are for convenience only and do not affect the meaning of any clause.
18.2 Words in the singular include the plural and words in the plural include the singular, and words importing one gender include every gender.
18.3 A reference to a statute is a reference to that statute as amended, re-enacted or replaced from time to time.
SCHEDULE OF THE PROPERTY
All that __________ bearing __________, held on a freehold basis, situated at __________.
Covered / built-up area: __________
Description of the construction: __________
Bounded as follows:
| Direction | Adjoining |
|---|---|
| North | __________ |
| South | __________ |
| East | __________ |
| West | __________ |
together with all rights, easements, appurtenances, fixtures and things passing with the Property under clause 4 of this deed.
IN WITNESS WHEREOF the Parties have read and understood this Sale Deed, have found its contents to be correct and in accordance with what was agreed between them, and have signed it at __________ on __________ in the presence of the witnesses named below.
SIGNED BY THE SELLER
1. ______________________________
__________
__________
PAN __________
(signature / left-hand thumb impression, and photograph affixed)
SIGNED BY THE BUYER
1. ______________________________
__________
__________
PAN __________
(signature / left-hand thumb impression, and photograph affixed)
WITNESSES
Witness 1
Signature: ______________________________
Name:
Address:
ID produced: ______________________________
Witness 2
Signature: ______________________________
Name:
Address:
ID produced: ______________________________
RECEIPT
Received from the Buyer, __________, the sum of __________, being the full and entire sale consideration for the Property described in the Schedule above, paid in the manner set out in clause 2 of this Sale Deed.
Nothing remains due or payable to the Seller on account of the sale consideration, and the Seller has no claim, charge or lien of any kind over the Property for any part of the price.
Date: __________ Place: __________
Signature of the Seller
______________________________
__________
NOTE ON EXECUTION — read before you sign
Common to both jurisdictions
- This deed is for a freehold property only. If the site is held on lease from Government or from a development authority, stop. A transfer of lease rights is a different instrument and, in the Union Territory of Chandigarh, a cheaper one — the Administration's published schedule charges a transfer of lease rights by way of sale, and a transfer of sub-lease rights by way of sale, at 3%, against 5% for a sale or conveyance. Using this deed for a leasehold site overpays the duty and recites a tenure the Property does not have.
- Buy the stamp first. Section 17 of the Indian Stamp Act, 1899 requires this deed to be stamped before or at the time of signing. Duty is charged on the higher of the price and the Collector rate value. For a built property the government valuation is normally the land rate plus a separate construction rate adjusted for the age of the building — applying the land rate alone is the commonest reason deeds come back short-stamped years later, with penalty under section 47-A.
- Print on the correct number of pages and sign every page. Each party signs at the foot of every page, not only at the end, and photographs are affixed as the registering office requires.
- Register within four months. Present the deed at the office of the Sub-Registrar of the sub-district where the Property is situated (section 28, Registration Act, 1908) within four months of execution (section 23). A delay of up to a further four months can be condoned on a fine of up to ten times the registration fee (section 25). After eight months it cannot be registered at all.
- Everyone must attend. All Sellers, or a duly empowered attorney under a registered power, all Buyers, and two witnesses with their own photo identity. Carry PAN cards, or a Form 60 declaration for a party to whom no PAN has been allotted, Aadhaar for the biometric capture, passport photographs, the original prior title deeds, the latest property tax receipt, proof of TDS deposit where section 194-IA applies, and the lender's no-objection certificate and originals where a loan is being closed out of the price.
- Do not accept a notarised deed instead of a registered one. Notarisation transfers nothing. Under section 49 of the Registration Act, 1908 an unregistered sale deed does not affect the Property and cannot be received in evidence of the sale.