How to Read a Sale Deed Before You Sign It

Party Details and Ownership Chain

The first section identifies the seller and buyer. Verify that the seller's name matches the title chain exactly — including spelling. Any discrepancy between the sale deed and the original allotment letter or previous sale deed is a red flag that must be resolved before registration, not after.

Property Schedule

The property schedule describes the exact unit — floor, tower, survey number, and boundaries. Cross-check the carpet area and floor number against your builder-buyer agreement. Mismatches here, even minor ones, create problems during resale and mortgage.

Payment Schedule and Consideration Amount

The consideration amount stated in the deed must reflect the full transaction value — not a lower amount to reduce stamp duty. Under-declaration of property value to evade stamp duty is illegal under the Registration Act and exposes both buyer and seller to penalties and transaction voidance.

Encumbrance Clause

The encumbrance clause states that the property is free of liens, mortgages, and claims. Verify this independently by obtaining an encumbrance certificate from the sub-registrar's office for the past 15 years. Do not rely solely on the seller's declaration — it is self-serving.

Possession and Handover Date

If the property is under construction, the deed must specify a possession date with a penalty clause for delay. The standard RERA-prescribed penalty is interest at SBI MCLR + 2% per month of delay. Any deed that dilutes this clause below RERA standards is disadvantageous to you and should be renegotiated.

What to Refuse

Refuse to sign any sale deed that does not specify exact carpet area, that contains blank clauses to be "filled in later," or that waives your right to seek legal remedy under RERA. A builder who pressures you to sign an incomplete document has reasons for doing so. That is not a document you want.