Introduction
A Sale Deed is the most important legal document in any property transaction. It serves as conclusive proof that ownership of a property has been transferred from the seller to the buyer. In Karnataka, understanding the Sale Deed process is essential for anyone looking to buy or sell property legally and securely.
What is a Sale Deed?
A Sale Deed (also called Conveyance Deed) is a legal document that records the sale and transfer of property ownership from one party to another. Once registered at the Sub-Registrar Office, it becomes the primary proof of ownership for the buyer.
Key characteristics:
- It is a bilateral contract between seller and buyer
- It must be executed on non-judicial stamp paper of appropriate value
- It must be registered at the Sub-Registrar Office to be legally valid
- It transfers all rights, title, and interest in the property
What Does a Sale Deed Contain?
A comprehensive Sale Deed includes:
1. Party Details
- Full names and addresses of seller(s) and buyer(s)
- Age, occupation, and identification details
- PAN numbers (mandatory for transactions above ₹10 lakhs)
2. Property Description
- Complete address with survey/plot number
- Total area (in sq. ft., sq. meters, or acres)
- Boundaries on all four sides (East, West, North, South)
- Type of property (residential, commercial, agricultural)
3. Title History
- How the seller acquired the property
- Reference to Mother Deed and previous Sale Deeds
- Chain of ownership
4. Transaction Details
- Total sale consideration (price)
- Payment terms and mode of payment
- Earnest money/advance already paid
- Balance payment details
5. Legal Declarations
- Seller's declaration of clear title
- No encumbrances or liabilities
- No pending litigation
- Indemnity clauses
6. Possession Details
- Date of possession transfer
- Physical condition of property
Sale Deed vs Sale Agreement
| Aspect | Sale Agreement | Sale Deed |
|---|---|---|
| Purpose | Promise to sell in future | Actual transfer of ownership |
| Ownership | Remains with seller | Transfers to buyer |
| Registration | Optional (but recommended) | Mandatory |
| Legal Status | Executory contract | Executed contract |
| Stamp Duty | Nominal (0.1% in Karnataka) | Full stamp duty applicable |
Sale Deed Registration Process in Karnataka
Step 1: Document Preparation
- Draft the Sale Deed with all required details
- Get it vetted by a lawyer
- Print on appropriate stamp paper
Step 2: Stamp Duty Payment
- Calculate stamp duty based on property value or guidance value (whichever is higher)
- Pay through e-Stamping (SHCIL/Stock Holding Corporation)
- Current rates: 5% for most properties in Karnataka
Step 3: Book Appointment
- Visit Kaveri Online portal
- Book slot at the relevant Sub-Registrar Office
- Typically requires 2-3 days advance booking
Step 4: Registration Day
Documents to bring:
- Original Sale Deed on stamp paper
- Two witnesses with ID proof
- Seller and buyer ID proofs (Aadhaar, PAN)
- Passport photos
- Previous ownership documents (Mother Deed, previous Sale Deed)
- EC (Encumbrance Certificate)
- Khata certificate
- Latest property tax receipts
- NOC from society/apartment (if applicable)
Step 5: Execution
- Biometric verification of all parties
- Photographs captured
- Signatures and thumb impressions taken
- Registration fee payment (1% of property value)
Step 6: Document Collection
- Collect registered Sale Deed after 2-3 days
- Verify all details are correctly recorded
Stamp Duty and Registration Charges in Karnataka (2025)
| Component | Rate |
|---|---|
| Stamp Duty | 5% of property value |
| Registration Fee | 1% of property value |
| Cess | 10% of stamp duty |
| Surcharge (BBMP areas) | 2% additional |
Example Calculation:
For a property worth ₹50,00,000:
- Stamp Duty: ₹2,50,000
- Registration: ₹50,000
- Cess: ₹25,000
- Total: ₹3,25,000 (approximately)
Important Clauses to Check in Sale Deed
- Indemnity Clause - Seller agrees to compensate buyer for any losses due to title defects
- Schedule of Property - Exact description matching physical property
- Encumbrance Declaration - Confirms property is free from charges
- Possession Clause - When physical possession will be handed over
- Payment Receipt - Acknowledgment of full payment received
Common Mistakes to Avoid
- Not verifying seller's title - Always check Mother Deed and ownership chain
- Ignoring encumbrances - Get fresh EC before registration
- Incorrect property description - Survey numbers must match records
- Undervaluing property - Can lead to legal issues later
- Missing witnesses - Two independent witnesses are mandatory
- Not reading entire document - Understand every clause before signing
What Happens After Registration?
- Mutation/Khata Transfer - Apply for Khata transfer at BBMP/local authority
- Property Tax Update - Update property tax records in buyer's name
- Utility Transfers - Transfer electricity, water connections
- Society Registration - Update records with housing society
- Safe Storage - Keep original Sale Deed in bank locker
