Sale deed
Added Last checked against India Code
The document by which ownership of immovable property passes from seller to buyer. For property worth Rs 100 or more it must be a registered instrument, and it carries stamp duty.
- Main law
- Section 54, Transfer of Property Act
- Registration
- Compulsory for property worth Rs 100 or more
- Time to register
- Generally within 4 months of execution
- Stamp duty paid by
- Buyer, unless agreed otherwise
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I am buying, selling, renting or gifting property
Check the title chain and the encumbrance record before you pay anything, and register the document where the law requires it.
I am in a property dispute
Collect every document that shows ownership or possession, such as the deed, tax receipts and utility bills. Time limits apply to most property suits.
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What it means
Section 54 of the Transfer of Property Act, 1882 defines sale as a transfer of ownership in exchange for a price paid or promised, or part paid and part promised. The sale deed is the document that makes that transfer.
For tangible immovable property worth Rs 100 or more, Section 54 says the sale can be made only by a registered instrument. Section 17(1)(b) of the Registration Act, 1908 makes such documents compulsorily registrable, and Section 49 says an unregistered document of this kind does not affect the property and cannot be received as evidence of the transaction, apart from narrow exceptions such as a suit for specific performance.
A sale deed is different from an agreement to sell. Section 54 says a contract for the sale of immovable property is only an agreement that a sale will take place on agreed terms, and it does not by itself create any interest in or charge on the property. Ownership passes when the registered sale deed is executed, not when the agreement is signed.
The sale deed is also a conveyance for stamp duty. It falls under Article 23 of Schedule I to the Indian Stamp Act, 1899, and the rate is set by each state. Under Section 29(c) of that Act, the duty on a conveyance is paid by the grantee, that is the buyer, unless the parties agree otherwise.
The law
| Current provision | Replaced |
|---|---|
| Section 54, Transfer of Property Act, 1882Sale defined; sale of property worth Rs 100 or more only by registered instrument | Still in force; not renumbered |
| Sections 17, 23 and 49, Registration Act, 1908Compulsory registration, time to present, effect of not registering | Still in force; not renumbered |
| Section 29 and Article 23, Schedule I, Indian Stamp Act, 1899Stamp duty on a conveyance and who pays it | Still in force; not renumbered |
When it matters
- You are buying a flat, house or plot and the seller's lawyer sends you a draft sale deed to approve.
- You paid an advance under an agreement to sell and want to know when you actually become the owner.
- A seller offers to give you only a general power of attorney and an agreement instead of a registered sale deed.
- You need to apply for mutation, a home loan or a resale, and are asked for the registered sale deed.
Example
Ravi agrees to buy a flat in Lucknow and signs an agreement to sell with an advance. Two months later he and the seller sign the sale deed on paper carrying the stamp duty set by the state, and both appear before the Sub-Registrar, who registers it. Ravi becomes owner through the registered sale deed. The earlier agreement alone gave him no ownership.
Watch out for
- Section 23 of the Registration Act says a document other than a will must be presented for registration within four months from the date it is executed.
- Under Section 32A of the Registration Act, the person presenting the document must affix a passport size photograph and fingerprints to it, and for a transfer of ownership of immovable property the buyer and seller named in it must do so too.
- Sales made only through a general power of attorney, an agreement to sell and a will do not pass title. The Supreme Court said so in Suraj Lamp and Industries v State of Haryana (2011).
- Stamp duty and registration fees differ from state to state. Check the current rate where the property is located.
- A draft Registration Bill, 2025, meant to replace the Registration Act, 1908, was released for public comments by the Department of Land Resources on 27 May 2025. Check whether it has become law before relying on any changed procedure.
Common questions
What is the difference between a sale deed and an agreement to sell?
An agreement to sell is a promise that the sale will happen later on agreed terms. Section 54 of the Transfer of Property Act says it creates no interest in the property. The registered sale deed is what actually transfers ownership.
Who pays stamp duty on a sale deed?
Under Section 29(c) of the Indian Stamp Act, 1899, the duty on a conveyance is paid by the grantee, which is the buyer, unless the parties have agreed otherwise. The rate itself is fixed by each state.
Is an unregistered sale deed valid?
For property worth Rs 100 or more, no transfer happens without registration. Section 49 of the Registration Act says such an unregistered document does not affect the property and cannot be used as evidence of the transaction, except in limited cases such as a suit for specific performance.
Dealing in property?
A property lawyer can check the title before you commit.
In a property dispute?
Speak to a lawyer before the limitation period runs out.
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Last checked against the official text on India Code on 10 Nov 2026. This is general information on Indian law, not legal advice for your situation. Laws and court rulings change; a lawyer can tell you how they apply to your facts.