Contents of Sale Deed

Key Elements of a Sale Deed Explained

1. Parties of the Sale Deed:
   The sale deed specifies the details of the parties interested in the transaction. It includes the names, ages, and addresses of both the buyer and seller. This step is particularly important when dealing with NRI selling property in India or NRI inheriting property in India, as precise identification prevents legal disputes.

2. Details of the Property:
   The deed must clearly outline the property details, such as plot area, identification number, construction specifications, exact location, and surroundings. A schedule of details is attached to ensure accuracy, especially in cases of review of agreement to sell or during registration of agreement to sell.

3. Consideration:
   The deed explicitly states the amount of consideration (sale price). The buyer is obligated to pay the specified amount to the seller during the execution of the deed of sale.

4. Mode of Payment:
   The sale deed clearly outlines the terms and conditions of payment. The parties decide the payment method and schedule, which must be documented to avoid future misunderstandings.

5. Encumbrances:
   An encumbrance clause in the drafting of the sale deed ensures that the property is free from additional claims or liens. This is crucial for buyers, especially when dealing with NRI selling inherited property in India, as it validates the property's legal standing.

6. Indemnity Clause:
   The indemnity clause serves as a risk allocation mechanism between the buyer and seller. It appreciative one party to compensate the other for any losses or damages, ensuring transparency and legal protection for both parties during the transaction.

Also Read: Sale Deed Agreement in India: Why Registration is Mandatory