DAMODARAM SANJIVAYYA NATIONAL LAW

UNIVERSITY
VISAKHAPATNAM, A.P., INDIA

SALE DEED

CLINICAL PAPER-II
DRAFTING, PLEADING & CONVEYANCING

Submitted to: Ms. Madhu Rana, Research Assistant

Submitted by
Prashant Kumar Verma
201277

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 ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me

throughout the course of this project. I am thankful for their aspiring guidance, invaluably
constructive criticism and friendly advice during the project work. I am sincerely grateful to
them for sharing their truthful and illuminating views on a number of issues related to the
project.

I express my warm thanks to Ms. Madhu Rana, for her support and guidance.

Thank you

Prashant Kumar Verma

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 TABLE OF CONTENTS

1. Introduction....4
2. Facts of the case for Sale Deed..................................................................7
3. Sale Deed.....8
4. Conclusion...14
5. Bibliography...15

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 INTRODUCTION

Sale of immovable property is governed by the Transfer of Property Act, 1882.

Whereas, sale of movable property is regulated by Sale of Goods Act, 1930.

SECTION 54 OF THE TRANSFER OF PROPERTY ACT, 1882

Sale is a transfer of ownership in exchange for a price paid or promised or part-paid

and part-promised. Procedure of sale, in the case of tangible immovable property of the value
of one hundred rupees and upwards, or in the case of a reversion or other intangible thing,
can be made only by a registered instrument. In the case of tangible immoveable property of
a value less than one hundred rupees, such transfer may be made either by a registered
instrument or by delivery of the property. Delivery of tangible immovable property takes
place when the seller places the buyer or such person as he directs, in possession of the
property.
Contract for sale- A contract for the sale of immovable property is a contract that a sale of
such property shall take place on terms settled between the parties. It does not, of itself,
create any interest in or charge on such property.
The essential elements of a sale are:
Parties to a sale;
Subject matter of sale;
Price or consideration;
Mode of execution of sale.
Parties to Sale
The parties to a sale are the transferor who is called a seller, and the transferee known
as the buyer. A contract of sale must be based on a mutual agreement between the seller and
the buyer.1 The transferor or the seller must be a person who is competent to enter into a
contract i.e., he must be a major and of sound mind and should not be legally disqualified to
transfer the property. A minor or a person of unsound mind is incompetent to transfer his own
property despite being its owner, but a transfer by a mentally challenged person during lucid
intervals is valid. Statutory incompetency refers to an, incompetency imposed under law or a
statute. When a person is declared as an insolvent, his property vests in the official receiver
and he is incompetent to transfer the same. Similarly, a judgment debtor is not capable to sell
his property that is to be sold in execution under the order of the court. The property cannot

1 Misabul Enterprises v. Vijaya Srivastava, AIR 2003 Del. 15.

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be sold when it is under the management of the Court of Wards. The transferor should either
be the owner of the property or should have an authority to dispose of it. For example, the
karta of a joint family property is authorized to transfer the property under certain specified
circumstances.2 Similarly, the guardian of the property of a minor is empowered to sell it with
the permission of the court, and without such permission the sale would be invalid. 3 An agent
having a power of attorney to sell the property can also sell it without being the owner of the
property. Where the sale is executed after getting a general power of attorney; without
obtaining the requisite permission of the court, the sale deed is invalid and would not confer
any title on the transferee,4 but if the Power of Attorney executed in favour of the holder
expressly authorizes him to transfer the property he would be a competent seller.5
Subject Matter of a Sale
Section 54 only governs the sale of immovable property. Immovable property can be
tangible or intangible. Tangible property is one that can be touched, such as a house, a tree
etc., while intangible property refers to property that cannot be touched such as a right of
fishery, a right of way etc.
Price or Consideration
Price, in the ordinary sense connotes money consideration for the sale of property. 6
Where, instead of price, some other valuable consideration is kept, the transaction is not a
sale but can be an exchange or a barter. Where the consideration is money but is not specific,
the transaction would still be a sale. Thus, if the transaction on the-face of it is complete, it
cannot be regarded as a mere agreement only on the ground that the price is unascertained at
that time.
Mode of Execution
Section 54 lays down a specific method for the execution of a sale deed with respect
to immovable property and completion of sale. Generally speaking, in a sale, the three
requirements of law are that transfer of property by sale must take place with the help of a
validly executed sale deed, by the transferor in writing, is properly attested, and registered.46
Unless, the all three conditions are complied. Unless, the all three conditions are complied
with, no right passes from the seller to the buyer or in other words, there can be no sale.

2 Biswanath Sahu v. Tribeni Mohan, AIR 2003 Ori 189.

3 See Sarup Chand v. Surjit Kaur, AIR 2002 P & H 54.
4 Lakhwinder Singh v. Paramjit Kaur, AIR 2004 P & H 6.
5 A Bhagyamma v. Bangalore Development Authority, Bangalore, AIR 2010 Kar. 63.
6 Commr of Income Tax v. Motor and General Stores, AIR 1967 SC 200.

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SALE OF MOVABLE PROPERTY
Goods have been defined under Sec. 2(7) of the Sale of Goods Act, 1930, to include
every kind of movable property, including stocks, shares, crops, grass, severable objects, etc.
It is supplemented by the definitions of movable and immovable property under Sec. 3(36)
and Sec. 3(26) of the General Clauses Act, 1897.
Goods is defined as per Section 2 (7) of the Act as. Every kind of movable property other
than actionable claims and money; and includes stock and shares, growing crops, grass, and
things attached to or forming part of the land which are agreed to be severed before sale or
under the contract of sale.

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 FACTS OF THE CASE FOR SALE DEED

Arvind Singh along with his wife Sonali Singh were going to attend a marriage ceremony at
Bhilai form Jamshedpur by road riding on their personal car (Maruti Suzuki WagonR car).
However, this journey unfortunately ended into their last journey together and both of them
died in an accident leaving behind their only child Uday Singh.

Arvind Singh being in business of real estate had lots of property both movable and
immovable as a result of which his childhood friend Manish Tiwari was appointed as legal
guardian for their minor son Uday.

Subsequently, due to some financial needs in relation with the education of Uday as he was
about to enter into a college for his higher education. As, it was the desire of their late parents
to see Uday as a doctor and to enter into the field of medicine. Therefore, his uncle cum
guardian contacted a dealer to sale some of his friends property for Udays education and
daily expenses. As a result of which they came into contact with Anant Nath Tripathi a
businessman by profession who agreed to buy a flat and a plot on a consideration of Rs. 72,
00,000.

On the plot a commercial complex has been built of name Shanti Complex and a flat is also
their on the third floor of the complex which both of them has to be sold out to Anant Nath
Tripathi though the conveyance of sale deed.

The whole plot is 2000 sq.mts and the flat along with parking area covers area of 1380 sq.ft
(1200 + 180). The complex is situated in heart of the city and form all four directions are
covered by prominent residential apartments and commercial shopping complex.

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 SALE DEED

THIS DEED OF SALE is made and executed on this the 16th of March of 2016 (16/03/2016),
By
Sri Uday Singh S/o, Late Arvind Singh, aged about 17 years, Student, Resident of Pratap
Nagar, 4D/4, Veer Kunwar Singh Path, Jamshedpur, Jharkhand.
Represented by his agent (or)
Being minor represented by Guardian
Sri Manish Tiwari S/o, Sri Prem Nath Tiwari, aged about 36 years, Occupation: Journalist
Residing at D/No. 338, Co-operative Colony, Sector 12, Jamshedpur, Jharkhand under
general power of attorney dated 14/02/2016 Registered as Document Number 207 of Year
2016 Book IV of RO/SRO at Jamshedpur.
Hereinafter referred to as VENDOR which term shall mean and include all his heirs, legal
representatives, executors, administrators, attorneys and assignees etc.
IN FAVOUR OF
Sri Anant Nath Tripathi S/o, Sri Neeraj Nath Tripathi, aged about 31 years, Occupation:
Businessman Resident of D.No. 12/24 Kewatpara, Subhash Nagar, Jamshedpur, Jharkhand.
Hereinafter referred to as VENDEE which term shall mean and include all his heirs, legal
representatives, executors, administrators and assignees, etc.
WHEREAS the Vendor is the sole and absolute owner of the Plot bearing Plot No. 45,
situated at City Centre, Sector-4, Block No A/1, Jamshedpur.
Registered at Jamshedpur Muncipal Corporation which was inherited / having acquired
through a Succession Certificate Registered as Document No.-304 of S.R.O. Jamshedpur
copied in Volume No. 41 at Page10.
WHEREAS the Vendor was desirous of constructing a residential complex in the said
premises have approached the Developer, and the Developer agreed for the same as per the
Development Agreement registered as No. 25/2015 of S.R.O Jamshedpur.
WHEREAS the Vendor herein has/have obtained Permission for Stilt + Upper Three Floors,
vide Permit No.3011 in File No.23/2015 dated 12/01/2015 from the Municipal Corporation of
Jamshedpur.
WHEREAS the Vendor(s) have constructed complex named as Shanti Complex in the said
premises consisting of Stilt Floor for parking + Upper Three Floors for residential units,
having amenities of electricity, municipal water and a community hall adjacent to it.

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AND WHEREAS the Vendor(s) offered to sell (The undivided share of the site described in
A schedule) Flat no. 304 Described in B schedule (hereinafter referred to as the
SCHEDULE PROPERTY) to the Vendee for a total sale consideration of Rs.72 lakhs( Rs.
72,00,000) and the Vendee herein has agreed to purchase the above mentioned Flat for the
said sale consideration which includes the consideration for the purchase of the proportionate
undivided share of land.
NOW THIS DEED OF SALE WITNESSETH AS FOLLOWS;
1. That in pursuance of the said offer and acceptance the Vendee has already paid the entire
sale consideration of Rs. 72 lakhs( Rs. 72,00,000) to the Vendors, the receipt of which the
Vendors hereby admitted and acknowledged, the Vendors hereby convey, transfer and assign
all their title, right and interest over the schedule property together with Rights of easements
and appurtenances unto and to the use of the Vendee.
2. That the Vendors have this day delivered the vacant, physical and peaceful possession of
the Schedule Property to the Vendee TO HAVE AND TO HOLD the same absolutely and
forever, which is more fully and specifically delineated and described in Schedule Property.
3. That the Vendors have paid all the taxes, cess, dues etc., in respect of the schedule
mentioned property up to the date of registration of Sale Deed.
4. That the rights, titles, interests, easements, privileges, appurtenances, liberties, enjoyments
and possessions are hereby transferred and subsist in favour of the Vendee absolutely and
forever.
5. That the Vendors hereby declare and covenant with the Vendee that the schedule mentioned
property is free from all encumbrances, charges, prior sales, gifts, mortgages, liens, court
attachments and litigations etc., and the Vendors have full power and absolute authority to
sell the said premises to the Vendee absolutely and forever.
6. That the Vendors hereby undertake to indemnify and keep the Vendee indemnified against
all the losses, costs, expenses, damages sustained if any to the Vendee on account of any
defect in title of Vendors or if the Vendee is derived from the part or whole of the schedule
property, the Vendors shall compensate against the same at all times with the personal or
other property.
7. That the Vendors further declare and covenant with the Vendee that they will execute any
further deeds of assurance to strengthen the title of the Vendee at the cost and expenses of the
Vendee.

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8. The Vendee shall be the joint owner of schedule land along with other Flat owners of the
building complex abovementioned and the land is for the common use of the Flat owners of
the building complex.
9. The vendor hereby declare that the site described in A schedule property is not in
assigned land within the meaning of Jharkhand Assigned Lands (Prohibition and Transfers)
Act 9 of 2007 and it is also not sold to anybody or under mortgage to Govt. / Agencies /
under takings.
10. All the charges for the registration of sale deed will be bear by Vendee on the mutual
consensus between the parties.
TERMS AND CONDITIONS OF SALE DEED:
a) TO HAVE PEACEFUL AND OCCUPATION OF THE BUILDING COMPLEX ABOVE
MENTIONED THE VENDEE HEREBY COVENANTS AS FOLLOWS;
b) The Vendee hereby agrees to be a member of the Society or Association to be registered
under the Societies Act or any other analogous enactment or regulations that may be formed
by all the Flat owners of the building complex and the Vendee shall abide by the rules and by-
laws of the said Society who shall be the administrators of common services such as lift,
transformer, corridors, passages, staircases, drainage, water supply, maintenance of bore
wells, electricity and other properties of common enjoyment and maintenance of security
staff and any such other welfare activities as the general body of Society may consider and
resolve by a special resolution. The Vendee shall pay to the Society / Association share of the
amounts towards common services, insurance premium, taxes leviable on the entire building
complex. Further, the Vendee shall pay the property tax, electricity meter deposit, electricity
consumption charges and water charges of scheduled property etc., to the concerned
authorities regularly.
c) The Vendee shall park vehicle only in the parking area in the common area, and the same
shall make use of the common passage leading from the main road to the apartments only as
an approach to the apartments and no cause any obstruction in the passage and will not have
any right over the sky-space over the passage.
d) The Vendee shall not at any time demolish schedule property or any part of the building
including the common areas such as staircase, lift, parking area, drainage pipes, cables, water
courses, gutters, wires and other conveniences necessary for proper utility of the building.
The Vendee shall not make any additions or alterations or any new constructions of any
nature whatsoever contrary to the Municipal Corporation of Jamshedpur plan for his Flat or
to any part of the building. The Vendee shall not close the verandahs or lounges or also shall

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not alter the exterior colour of the building complex. For this purpose the Flat owners means
all persons having rights, title or interest in any part of the building. The design of the grills
provided to the balconies as well as to the windows of apartments shall not be replaced with
any other design so as to maintain uniformity in the appearance of the building.
e) The Vendee hereby agrees to keep his/her Flat as well as the partition walls, drains, drain
pipes, water pipe lines and the appurtenances thereto in good condition so as to support
shelter and protect all parts of the building and also for proper utility and occupation.
f) The Vendee hereby agrees to use the common over head tank jointly along with other Flat
owners and undertakes to pay the water charges proportionately if water is purchased.
g) The Vendee shall covenants that he/she shall not throw any dust, rubbish, rags, waste or
permit the same to be thrown in the compound or in any portion of the building complex,
which may cause damage, loss or inconvenience to other occupants of the building.
h) The Vendee hereby agrees that he/she shall not use the Flat for any purpose which may
cause nuisance or disturbance to the neighbouring occupants of the building, or for any illegal
or immoral purpose.
i) The Vendee shall not store in the Flat any explosive or goods of destructive nature which
are likely to cause fire or explosion and also shall not store heavy weight materials which
may affect damage or destroy the structures of the building.
j) In case of any future dispute between the parties the matter shall be referred for
institutional arbitration at M.C. Setalvad Arbitration Centre, Kolkata. (Arbitration Clause)
k) Default clause: In case of any default by the vendor or the purchaser (vendee) then the
party who rescinds the contract need to pay damages to the other party for the breach of
contract so that it will not affect to the execution of the sale deed.

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A SCHEDULE PROPERTY (PLOT)
All that piece and parcel of the site as measuring 2000 Sq.Mts. Survey No.45 Plot bearing
Plot No. 45, situated at City Centre, Sector-4, Block No A/1, Jamshedpur. Situated at
Jamshedpur Municipal Corporation and registered at Sub District Jamshedpur Registration
office.
This is more fully described in the plan annexed hereto and marked in RED colour and
bounded as under:
NORTH: Harihar Chambers
SOUTH: Maurya Shopping Complex
EAST: Alpana Market
WEST: Jayanti Niliyam Apartment
In the above property undivided share of 2000 Sq.Mts
B SCHEDULE PROPERTY (RESIDENTIAL FLAT)
Flat No. 304 in Third Floor With a Plinth Area of 1200 Sq.Feet including common areas
along with parking area admeasuring 180 Sq.Feet in the residential / commercial complex
named Shanti Complex constructed in the A Schedule Property bounded by;
NORTH: Harihar Chambers
SOUTH: Maurya Shopping Complex
EAST: Alpana Market
WEST: Jayanti Niliyam Apartment
IN WITNESS WHEREOF the Vendors have hereunto set their hand to this Absolute Deed of
Sale on this day, month and the year first above mentioned in the presence of the following
witnesses.
VENDORS WITNESSES:
1. Sri Neeraj Kishan Kaul, S/O Sri Raunak Kishan Kaul, A/O 27 years, residence at
Jamshedpur.
Signature

2. Sri Ajay Singh, S/O Sri Ram Singh, A/O 31 years, residence at Jamshedpur.

Signature

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 VENDEES WITNESSES:
1. Sri Ram Kumar, S/O Sri Kishan Kumar, A/O 35 years, residence at Jamshedpur.

Signature

2. Sri Kanhaiya Kumar, S/O Sri Nishant Kumar, A/O 29 years, residence at Jamshedpur.

Signature

VENDORS GUARDIAN (AGENT)

Signature Date: 16/03/2016
Place: Jamshedpur

VENDEE
Signature Date: 16/03/2016
Place: Jamshedpur

Document prepared by Vidhi Law Associates, Law Firm, Registered Office at Ranchi,
Jharkhand.
Signature:
(Legal Associate, Ranchi Office)

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 CONCLUSION
A sale deed is one of the most valuable legal documents in a purchase or sale of a
property. A sale deed is drafted by legal draftsman on a non-judicial stamp paper of the
requisite value as prescribed by stamp act of the particular state concerned. The word SALE
DEED otherwise called as Conveyance Deed is a legal written document executed by the
vendor and the purchaser which evidences the sale and transfer of ownership of the tangible
immovable property. A sale deed is governed by The Registration Act, 1908 and is an
important document for both the buyer or the transferee and the seller or the transferor. A sale
deed is executed after the execution of the agreement to sell and after compliance of various
terms and conditions between the seller and the purchaser mutually. A sale deed is the main
document which gives details of how the seller got the property, at what consideration the
seller is selling the property and assurance to the purchaser that the property is free from any
encumbrances, liabilities or indemnity clauses. A sale deed acts as a essential document for
the further sale of the property by the purchaser as it establishes the proof of ownership of
property.

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 BIBLIOGRAPHY

1. Dr. Singh Avatar, Transfer of Property Act, 16th Edition, Universal Publishing Book
House.
2. Poonam Pradhan Saxena on Property Law, 6th Edition, Reprint 2006, LexisNexis,
Butterworths Wadhwa, Nagpur.
3. Kafaltiya A.B., Textbook on Pleading, Drafting & Conveyancing, 2010 Edition, Universal
Law Publishing Company.
4. Kolhatkar Medha, Drafting, Pleading & Conveyancing, 2015 Edition, LexisNexis,
Butterworths Wadhwa, Nagpur.

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