What does a sale deed transfer?
A sale deed transfers ownership of immovable property from the seller to the buyer for a price. Section 54 of the Transfer of Property Act says that sale is made by a registered instrument. An agreement that the sale will happen later is not that transfer.
What does it transfer?
The instrument names the seller and the buyer, describes the property, states the price, and transfers ownership. Possession may pass with the deed or on a date the deed states. The deed does not, by being signed, remove a mortgage or another right that already binds the property. The buyer reads the earlier title documents before signing.
Where is it registered?
The parties register the instrument with the Sub-Registrar of the district in which the property sits. Stamp duty is paid under that state’s stamp law before or at registration. The rate is the state’s. This page does not quote it, and it does not list one set of papers for every office. The office asks for the instrument, the identity of the parties, and proof of the seller’s title.
What is not a sale deed?
A contract for sale is not the sale. Section 54 says it does not of itself create an interest in the property. A gift is not a sale, because a sale needs a price. A transfer of shares is Form SH-4, on the share-transfer page.
Frequently asked questions
Four questions cover an agreement to sell, stamp duty, shares, and title.
Is an agreement to sell the sale?
No. A contract for sale does not, of itself, create any interest in the property. The sale is the registered instrument that transfers ownership.
Is stamp duty one national rate?
No. Stamp duty and the registration fee follow the state where the property is. This page does not quote either figure.
Does a sale of shares use a sale deed?
No. Shares in a private company are transferred by Form SH-4. That is not a sale of immovable property.
Does registration prove the seller had title?
No. Registration records the instrument. It does not cure a defect in the seller’s title. The buyer still checks the earlier deeds.
Sources
A sale of immovable property is section 54 of the Transfer of Property Act, 1882. Registration of that instrument is the Registration Act, 1908. A transfer of shares is a different statute.