What is sale deed?
Also called: registry, bainama, sale deed registration
The sale deed, called the registry in much of North India, is the registered document that actually transfers ownership from seller to buyer. Until it's stamped and registered at the sub-registrar's office, the buyer doesn't own the property in law, however much has been paid.
Section 54 of the Transfer of Property Act, 1882 says a sale of immovable property worth ₹100 or more can only be made by a registered instrument. That instrument is the sale deed (bainama in UP courts and tehsils). It names the seller and buyer, describes the property down to the khasra or survey number, flat number and boundaries, records the price and how it was paid, and carries the seller's declaration that the title is clear.
Registration happens before the sub-registrar for the area where the property sits. Both parties, or their registered attorneys, appear with two witnesses; photos and biometrics are taken; and the deed is stamped on the agreed price or the circle rate, whichever is higher. That last rule surprises people. Agree to buy a Lucknow flat for ₹62 lakh when the circle rate works out to ₹70 lakh, and duty is charged on ₹70 lakh. The gap can also draw income-tax questions for both sides.
In a new project, the builder executes the deed only after the occupancy certificate and full payment. In a resale it's the last step, and the buyer's bank usually hands the balance to the seller as a demand draft at the registration table. The bank doesn't deduct tax for you: if the price is ₹50 lakh or more, the buyer must deduct 1% TDS (the old Section 194-IA) and deposit it online.
Read the draft line by line before the appointment. A typo in the flat number, carpet area or the seller's name is painful to fix afterwards, because the correction needs a separate registered rectification deed with its own fees and another visit by both parties.
A buyer registering a ₹1.5 crore resale flat in Mumbai pays 6% stamp duty (₹9 lakh, including the 1% metro cess) plus a registration fee that Maharashtra caps at ₹30,000. A woman buying in her own name gets a one percentage point concession on the duty.
Paying the full price against an unregistered agreement or a GPA and treating that as ownership. Without a registered sale deed the property is still the seller's, and his creditors or heirs can claim it.
Questions people ask about sale deed
Is a sale deed the same as a conveyance deed?
Both transfer title, and a sale deed is one kind of conveyance. In practice 'sale deed' is used for resales and plots, while 'conveyance deed' often means a builder's transfer of a new flat or the transfer of land to a society.
What if the original sale deed is lost?
The sub-registrar's office keeps the registered record and issues certified copies, and many states now let you apply online. A lender will usually also want a police complaint, a newspaper notice and an indemnity bond before accepting the copy.