1. After Completion of Due Diligence
The sale deed should be executed only after the buyer has completed a full legal due diligence process, which includes:
- Verifying the seller’s title and ownership.
- Checking for encumbrances, liens, or legal disputes.
- Confirming land use, zoning, and regulatory compliance.
- Reviewing original property documents and approvals.
Due diligence ensures that the buyer is fully aware of the legal status and authenticity of the land being purchased.
2. Post Agreement to Sell and Fulfillment of Conditions
Typically, the sale deed follows the signing of an Agreement to Sell or a Memorandum of Understanding (MoU). This agreement outlines:
- Sale consideration and payment schedule.
- Responsibilities of both parties.
- Conditions precedent to execution.
The sale deed is executed only after all conditions in the preliminary agreement are fulfilled, such as:
- Completion of initial payments (like earnest money or token advance).
- Obtaining No Objection Certificates (NOCs) from relevant authorities.
- Settlement of outstanding dues, if any, by the seller.
3. After Full or Substantial Payment of Sale Consideration
In most land transactions, especially involving industrial land, the sale deed is executed after the buyer pays the full or substantial portion of the sale price as agreed in the sale agreement.
- The payment is often made through bank instruments (cheque, demand draft, or NEFT).
- The seller provides a receipt or confirmation of payment at the time of execution.
- The deed includes a clause confirming the receipt of sale consideration.
4. On the Date of Registration at Sub-Registrar’s Office
The physical execution of the sale deed usually coincides with the registration appointment at the Sub-Registrar’s Office. Both the buyer and seller:
- Appear in person (or through authorized representatives).
- Sign the deed in the presence of witnesses.
- Submit identity and address proofs for biometric and photographic capture.
The sale deed must be executed on or immediately before the date of registration, ensuring that the transaction is legally documented and enforceable.
5. After Payment of Stamp Duty
The sale deed must be executed on stamp paper of appropriate value, or on plain paper after payment of e-stamp duty or franking. Stamp duty is a state-specific requirement, and the deed should be executed only after confirming the correct amount has been paid to avoid legal penalties or rejection during registration
6. Before Expiry of the Agreement Validity or Loan Sanction Period
In transactions involving bank financing or a registered agreement with a validity date, the sale deed must be executed before the expiry of such agreements or loan sanction letters, to ensure that all legal and financial commitments are honored within the agreed time frame.
