Understanding Deeds
Definition of a Deed
A deed is a written legal document that signifies the creation, confirmation, or transfer of a legal
right or interest in immovable property or rights. It serves as proof of a legal transaction, and
depending on the nature of the deed, it may require stamping and registration.
Legal Basis:
Indian Registration Act, 1908
Indian Stamp Act, 1899
Transfer of Property Act, 1882
Indian Contract Act, 1872 (in applicable cases)
Essential Features of a Valid Deed:
1. Written Document – Oral deeds are not valid for property transfers.
2. Parties Involved – Must clearly define grantor and grantee.
3. Free Consent – No coercion, undue influence, or fraud.
4. Lawful Object and Consideration
5. Signature and Attestation
6. Stamp Duty and Registration – As required by law.
Classification of Deeds
Deeds may be categorized based on the nature of the transaction. Each type has its own
relevance, format, and legal conditions.
1. Sale Deed
Definition:
A sale deed is a legal instrument through which the seller transfers the ownership of immovable
property to the buyer for a monetary consideration.
Legal Provisions:
Section 54 of Transfer of Property Act, 1882
Section 17 of Registration Act, 1908 (mandatory registration)
Contents of Sale Deed:
Names and details of seller and buyer
Description of the property
Sale consideration amount
Mode of payment
Possession clause
Encumbrance certificate
Case Law Example:
Aloka Bose v. Parmatma Devi (2009) – A valid sale deed requires registration and cannot be
created orally.
2. Mortgage Deed
Definition:
A mortgage deed is executed when a property is mortgaged to secure repayment of a loan.
Types of Mortgages (Sec. 58, Transfer of Property Act):
Simple Mortgage
Usufructuary Mortgage
Mortgage by Conditional Sale
English Mortgage
Mortgage by Deposit of Title Deeds
Anomalous Mortgage
Essentials:
Debt existence
Interest in immovable property
Right of redemption
Example Clause:
“If the borrower fails to repay the sum of ₹5,00,000 with 10% interest by 31st March 2025, the
lender shall have the right to foreclose the mortgage.”
3. Lease Deed
Definition:
A lease deed is a contract where the lessor allows the lessee to use the property for a specific
time in return for rent.
Legal Reference:
Section 105, Transfer of Property Act, 1882
Key Elements:
Duration of lease
Rent and deposit
Rights of renewal
Terms for eviction
Case Law:
Delta International Ltd. v. Shyam Sundar Ganeriwalla (1999) – A lease over 12 months must be
registered.
4. Gift Deed
Definition:
A gift deed transfers ownership of property voluntarily and without consideration.
Legal Provisions:
Section 122, Transfer of Property Act, 1882
Essentials:
Voluntary act by donor
Acceptance by donee
Registration is mandatory
Donor must be competent to gift
Case Reference:
K. Balakrishnan v. K. Kamalam (2004) – Gift without acceptance is invalid.
5. Relinquishment Deed
Definition:
Executed when a co-owner releases their share in a jointly held property in favor of another co-
owner.
Usage:
Common in partition of ancestral property or family settlements.
Legal Requirement:
Must be in writing and registered
Stamp duty applicable
6. Exchange Deed
Definition:
Both parties mutually transfer ownership of one property in exchange for another.
Legal Provision:
Section 118, Transfer of Property Act, 1882
Example:
Person A gives flat X to person B in exchange for land Y.
7. Partition Deed
Definition:
This deed divides jointly owned property among co-owners, ending the joint ownership.
Contents:
Details of each co-owner
Schedule of property
Mode of division
Rights and liabilities
8. Power of Attorney Deed
Definition:
Used when a person authorizes another to act on their behalf legally or financially.
Types:
General POA – For all legal acts
Special POA – Limited to specific transaction
Legal Use:
Often used in real estate, litigation, and NRI property management.
9. Adoption Deed
Definition:
Document that confirms the legal adoption of a child under Hindu law.
Not mandatory but serves as proof for:
Succession
Identity
Government benefits
Legal Provision:
Hindu Adoption and Maintenance Act, 1956
10. Will Deed
Definition:
A declaration by a person (testator) regarding distribution of property after their death.
Requirements:
Voluntary
In writing
Signed by testator
Attested by two witnesses
Note: Registration is not compulsory but preferred.
3: Execution and Registration of Deeds
Steps in Execution:
1. Drafting of deed on stamp paper
2. Signature by parties
3. Attestation by witnesses
4. Notarization (if required)
5. Registration at sub-registrar office
Registration Requirements:
Under Section 17, Registration Act, 1908
Mandatory for sale, mortgage, lease (more than one year), gift, and partition deeds
Deeds must be registered within four months from execution
