The Sale Deed is a cornerstone document in property transactions in Karnataka. It's not just a piece of paper but a pivotal legal instrument and title deed that outlines the details of property transactions.
Let’s explore different aspects of a Sale Deed, its necessity in transactions, different types of deeds, how to register a deed and how it can be used towards future property transactions.
What is a Sale Deed?
A Sale Deed, in Karnataka, is a legally binding document that is executed at the time of property registration of sale. It transfers the rights and interests of the property from the seller (also known as the vendor) to the buyer (also referred to as the vendee). This document comes into play after the agreement of sale is concluded and the terms and conditions of the sale are fulfilled.
Why is a Sale Deed Necessary in Karnataka?
- Legal Proof of Sale: The Sale Deed is the ultimate proof of the transfer of property ownership. It is a legal requirement under the Indian Registration Act, 1908.
- Prevents Fraud: It safeguards both parties against frauds and illegal transactions, ensuring that the property transfer is legitimate and consensual.
- Clarity in Future Transactions: Along with supporting property documents, it provides a clear history of ownership, which is vital for future transactions or legal references.
- Mandatory for Property Registration: In Karnataka, the registration of a Sale Deed is mandatory to complete the property transaction legally and to record it in government records.
Types of Deed Documents in Karnataka
Sale Deed / Title Deed / Mother Deed
1. Purpose: Transfers ownership of an immovable property from the seller to the buyer.
2. When Used: At the final stage of a property sale, post the agreement to sale.
3. Legal Requirement: Sale Deed needs to be mandatorily registered under the Indian Registration Act, 1908. It has legal validity as proof of ownership. In the case of a breach after the execution of a Sale Deed, it can lead to legal action, including a suit for ownership or possession.
Agreement to Sale
- Purpose: Outlines the terms and conditions for the future sale of immovable property.
- When Used: Before the execution of the Sale Deed.
- Legal Requirement: Registration is optional but recommended for legal safeguarding. In the case of the agreement to sale, a breach of this agreement may lead to a suit for specific performance or compensation, but not for ownership as the sale has not been concluded.
- Purpose: Transfer of property as a gift, without consideration.
- When Used: When a property is given as a gift, not in exchange for money.
- Legal Requirement: Requires compulsory registration at district registrar.
- Purpose: Pledges property as security for a loan.
- When Used: When taking a loan against property.
- Legal Requirement: Must be registered with the district registrar office if the loan period exceeds 12 months.
- Purpose: Agreement for renting or leasing a property.
- When Used: In cases of renting out property for longer durations, usually more than 11 months.
- Legal Requirement: Registration is mandatory at the registrar office for leases exceeding 11 months.
- Purpose: Relinquishes legal rights on a property, often used among family members.
- When Used: When one party wants to give up their share or claim in a jointly owned property.
- Legal Requirement: Requires registration at sub registrar office for legal validity.
- Purpose: Similar to Release Deed, it's for relinquishing one's rights in favor of other legal heirs or co-owners.
- When Used: Common in family property settlements.
- Legal Requirement: Compulsory registration at sub registrar office.
- Purpose: Divides property among co-owners, often used in dividing ancestral property.
- When Used: When there is a need to split a property into distinct portions owned separately by co-owners.
- Legal Requirement: Should be registered for legal effectiveness.
Power of Attorney (POA)
- Purpose: Authorizes another person to act on one’s behalf, can be specific to property transactions.
- When Used: When an individual cannot be physically present to handle property transactions.
- Legal Requirement: Registration is recommended for major transactions.
What Does a Sale Deed Contain?
A Sale Deed drafted in Karnataka typically includes the following:
Identification of Parties:
Full names and details of the buyer and seller, including their addresses and identification proofs.
Description of the Property:
Detailed description of the property being sold, including its location, survey number, size, boundaries, and any other relevant details. This is usually mentioned in the “Schedule” of the property
Sale Agreement Reference:
Reference to the sale agreement, mentioning its date and terms, ensuring continuity in documentation.
The total sale consideration, the mode of payment, and details of advance payment if any.
Transfer of Title:
A clause stating the transfer of property title from the seller to the buyer.
Provisions that protect the buyer from any legal discrepancies related to the property.
A declaration stating that the property is free from any legal dues or loans at the time of sale.
Names and details of witnesses to the transaction.
Date and place of document registration.
Link between Encumbrance Certificate and Sale Deed
An encumbrance certificate is a history of all transactions on a property. It will contain links to every sale deed that was executed on the property, even mentioning key aspects like document number, sub registrar office and year of registration of the deed.
Hence with a combination of an EC and Sale/Title Deed one can prove that a property has a clear and marketable title in most cases. In some cases other property documents like the RTC, Mutation and Akarbandh might be useful for property transactions as well.
Registration process of a sale deed
The Sale deed can be registered at the sub registrar office of your district.
Procedure to register sale deed
- Upload Documents online through Kaveri Online Services.
- Once completed a summary is generated which has to be approved by sub registrar
- Once approved, Calculate guidance value and stamp duty on the property by entering specific details
- Pay the registration fee along with stamp duty online.
- Book a slot at sub registrar office for final signing
- Visit office on registration day and complete the process
- Sale Deeds uploaded and available online around 4 days after registration
The government has recently made it mandatory to upload documents online through Kaveri Online Services before registering a property. Even the process of paying the registration fee and stamp duty has to be done through this portal. Once the application is submitted and approved by the sub registrar, registration fee and stamp duty is paid, a slot is booked at the office and the buyer / seller has to physically visit the office and sign the documents.
We will soon write a more detailed article about registering a sale deed.
Download Sale Deed Online
Through Kaveri Online Services website (https://kaveri.karnataka.gov.in) one can download the digital sale deed easily by selecting the “Certified Copy” option.
As an alternative to Kaveri, one can also download the Sale Deed through the Landeed app instantly.
With Landeed you no longer need to access Kaveri Online Services and can download the Sale Deed on the go. We also provide other property documents like EC, RTC, Mutation and Survey Documents which are necessary for all kinds of property transactions.
The Sale Deed is a fundamental document in the property transaction process in Karnataka. It not only signifies the culmination of a property deal but also acts as a safeguard for both the buyer and seller.
Understanding its importance and contents is essential for anyone involved in real estate transactions in the region. With its legal standing and detailed record, a Sale Deed ensures transparency and security in the dynamic world of property ownership.