Reading a Sale Deed in Bangalore Before You Sign: Clause by Clause

Most buyers sign a sale deed after skimming the first page and trusting the lawyer. That is risky, because the registered deed is the last word on what was bought, from whom and on what terms. What follows is a reading order for Bangalore buyers of both new and resale homes, built around the questions that each part of the deed answers.

Is This the Same as the Agreement for Sale?

The two differ in law. The 1882 Transfer of Property Act (section 54) insists on a registered instrument for selling land or a building worth Rs. 100 or more. The agreement for sale is just a promise. Ownership moves only when the deed is executed and registered, as the 1908 Registration Act requires.

Presentation for registration must happen within four months, counted from the signing date. In Karnataka, Kaveri 2.0 handles the process, and details go in online before the appointment. A final draft received a week early gives a lawyer time to read it and the parties time to fix errors.

Who Is Actually Signing?

The deed opens with names, ages, addresses and identity numbers. Every name should agree letter for letter with the PAN, Aadhaar and previous title deeds, as small differences cause problems at the khata office and at the bank later. All recorded owners must sign as sellers, and for inherited property every legal heir either joins in or gives a release that is registered.

When one person signs for another, check the paper that gives the authority. A power of attorney should be registered, valid and made for this property. A company needs a board resolution and a firm needs its partnership authority. In a joint development, the landowner and developer sign together, or the developer signs holding a registered power from the landowner.

Where Did the Seller's Title Come From?

The recitals answer this question by tracing ownership from the oldest deed down to the seller, through each purchase, gift, family partition or inheritance. In a flat sale they also cover how the land was bought or developed jointly, how the plan was sanctioned and how the building came up.

Hold the recitals against the copies you have, namely the mother deed, link deeds, conversion order, sanctioned plan and occupancy certificate. Check that document numbers, dates and registering offices all match. A broken link in the chain, or mention of a paper the seller cannot show, must be resolved first.

What Exactly Is Being Sold?

The schedules describe the property in legal terms and deserve the slowest reading. An apartment deed normally has three of them.

The first identifies the whole land: its survey or site number, locality, khata and extent, plus the neighbours on each of its four sides. The second gives the buyer's undivided portion of that land, in sq ft and also as a percentage. The third describes the apartment, giving its number, floor, block, carpet and super built-up areas, and parking.

Each entry should be compared with the agreement, the approved plan and the khata. Carpet area must equal the figure in the agreement as well as the one declared to RERA, and every parking space needs a number and a level. A buyer of a site should measure every side and boundary against the sanctioned layout and the ground.

How Is the Money Recorded?

The price clause states the full amount and acknowledges receipt. Ideally each instalment is listed along with when it was paid, how much, through which bank and under what reference. That includes the portion the home loan lender paid, and the entries together should add up to the price actually paid.

Duty in Karnataka is levied on the higher of the price and the guidance value. If the deed shows a lower price than the real one, both sides invite tax trouble and the buyer loses a clean cost record for a future sale. If the price reaches Rs. 50 Lakhs, the buyer withholds 1% tax and reports it through Form 141, a step the deed often mentions.

The duty works out at 2% for a property worth Rs. 20 Lakhs or less. It is 3% when the value is higher but within Rs. 45 Lakhs, and 5% beyond that. Cess of 10% and a surcharge of 2% on the duty lift the top slab to 5.6%, and registration is a flat 2%. Our EMI calculator includes all of this in the cash needed upfront.

What Does the Seller Promise?

Seller covenants follow the price. Some come by default from section 55 of the Transfer of Property Act, but a well-drafted deed writes them out. They fall into three groups.

Title and freedom from claims come first. The seller declares absolute ownership and the right to sell. The seller also states that no mortgage, charge, court case, acquisition notice or tenancy affects the property, except a loan that is being closed and is named.

Dues and possession come next. Tax, power, water and maintenance charges should be cleared until the sale date, and the buyer gets vacant possession on the day of the deed. Continuing duties close the list. These are an indemnity against loss from title defects, a promise to sign later papers for title or khata, and delivery of the original title documents to the buyer or the lender.

Dues and possession come next. Tax, power, water and maintenance charges should be cleared until the sale date, and the buyer gets vacant possession on the day of the deed. Continuing duties close the list. These are an indemnity against loss from title defects, a promise to sign later papers for title or khata, and delivery of the original title documents to the buyer or the lender.

The indemnity deserves particular care. It should reach claims by the seller's family and by earlier owners, and any ceiling should be sensible. For a resale with a loan still open, the deed or a separate letter should say that the lender has released the original documents.

Is the Flat Brand New?

Then the deed should follow the agreement filed with RERA, and the two need reading together. The RERA Act of 2016 requires, in section 17, a conveyance registered for the allottee. The common areas' undivided title must also pass to the association of allottees. Quote the occupancy certificate by its number and date in the deed.

Watch for new clauses. A developer may add a right to build more floors, exclusive use of terraces or open areas, or a waiver of the five-year liability for defects. Ask for these to be struck out or explained in writing.

At the Sub-Registrar's Office

Both sides attend with original identity documents, and the office takes photographs and thumb impressions. One more read of the printed deed before initialling each page is worth the time, because late edits breed errors. The registered deed returns with its number, book and date written on it.

Afterwards, collect the deed (or check that the lender holds it) and apply to move the khata to the buyer's name. A new encumbrance certificate taken after a few weeks should show the sale. Certified copies of the deed and earlier title papers should be stored together for later buyers and lenders. Our team can help with a developer's draft for homes in Bangalore that we market, and the contact page is the place to ask.