Closing a property deal legally

Agreement to sell vs sale deed

An agreement to sell records the intent and terms (price, schedule, possession) — it does not transfer ownership. The sale deed does, and only when it is executed and registered. Don't treat a signed agreement or a paid token as ownership.

Registration is mandatory

Transfer of immovable property must be registered under the Registration Act, 1908. The sale deed is signed before the sub-registrar, you pay stamp duty and registration fee, and the registered deed becomes your legal proof of title. An unregistered transfer generally cannot be used to prove ownership.

Stamp duty & TDS

• Stamp duty + registration fee is set per state (commonly a few percent of value combined) — pay the correct duty; under-stamping invites penalties and weakens the deed.
• If consideration is ₹50 lakh or more, the buyer deducts 1% TDS and deposits it (Income-tax Act, Section 194-IA).

After registration

• Collect the registered sale deed and all originals.
• Apply for mutation to record you as the owner in municipal/revenue records.
• Update property tax and utilities into your name; for a flat, transfer the society membership.

Get professional help where it counts

Engage a property lawyer for the title search and to vet the deed, and a CA for the tax treatment. The cost is small against the value at stake, and it is the difference between a deal that holds up and one that doesn't.

Avoid 'GPA sale' shortcuts to save stamp duty — they do not give you title and are a common source of later disputes.