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Writer's pictureAbhilasha Sharma

How to cancel the sale deed?


how sale deed is canceled

What is a sale deed?

A sale deed, also known as a conveyance deed, is a legal document used in real estate transactions to transfer the ownership of immovable property from the seller (transferor) to the buyer (transferee). This document is a crucial part of the property transfer process and serves as evidence of the sale and transfer of ownership rights.


What are the Key features of a sale deed?


A.Identification of Parties:

  • The sale deed identifies the parties involved in the transaction, namely the seller (vendor) and the buyer (vendee). Their full names, addresses, and other relevant details are typically mentioned.


B. Property Description:

  • The deed provides a detailed description of the property being transferred. This includes the property's physical boundaries, location, and any identifying features that clearly define the extent of the property.


C. Consideration Amount:

  • The sale deed specifies the total consideration amount for the property, which is the agreed-upon sale price between the buyer and the seller. It may also outline the payment terms and conditions.


D.Transfer of Ownership:

  • The primary purpose of the sale deed is to effect the transfer of ownership. It contains a clause known as the "conveyance clause" that formally transfers the property from the seller to the buyer.


E.Covenants and Warranties:

  • The sale deed may include various covenants and warranties, where the seller assures the buyer that they have the legal right to sell the property, and the property is free from encumbrances or legal issues.


F.Signatures and Attestation:

  • The document must be executed by both the seller and the buyer. Signatures are usually affixed in the presence of witnesses, and the sale deed is often notarized or attested by a competent authority.


G.Delivery of Possession:

  • The deed may include a clause related to the delivery of possession, specifying when and how the buyer will take possession of the property.


H.Registration:

  • To make the sale deed legally valid and enforceable, it must be registered with the appropriate government authority. The registration process involves submitting the deed to the local sub-registrar's office.


I.Stamp Duty:

  • The sale deed is also subject to stamp duty, and the appropriate stamp duty must be paid based on the property's value. The deed is then stamped before registration.


Once the sale deed is registered, it becomes a legally binding document, and the buyer officially becomes the owner of the property. It is essential for both parties involved in the transaction to carefully review and understand the terms outlined in the sale deed before signing it, and it is often recommended to seek legal advice to ensure that the document complies with relevant laws and regulations.


How to revoke a sale deed?


Revoking a sale deed is a complex legal process and is generally not an easy task. The transfer of property through a sale deed is considered a final and binding transaction. However, there are certain limited circumstances under which a sale deed may be challenged or set aside. Here are some potential grounds and general steps that might be considered, but it's crucial to consult with a qualified legal professional for advice tailored to your specific situation:


What are the Grounds for Challenging a Sale Deed?

  1. Fraud: If the sale deed was executed due to fraud, misrepresentation, or concealment of material facts by either party, it may be challenged on the grounds of fraud.

  2. Coercion or Undue Influence: If one party can prove that the sale deed was executed under duress, coercion, or undue influence, it may be possible to challenge the validity of the deed.

  3. Mistake of Fact: A sale deed may be challenged if there was a genuine mistake of fact, and the mistake was a fundamental factor leading to the execution of the deed.

  4. Lack of Capacity: If one of the parties lacked the legal capacity to enter into a contract, such as being a minor or mentally incapacitated, it may provide grounds for challenging the sale deed.

  5. Illegal Consideration or Object: If the consideration for the sale deed is illegal or against public policy, it may be a ground for challenging the deed.

What are the Steps to Challenge or Revoke a Sale Deed?

Step 1:Consult with a Lawyer:

Seek legal advice from a qualified property lawyer who specializes in real estate transactions. They can assess the circumstances and advise you on the viability of challenging the sale deed.

Step 2:Collect Evidence:

Gather relevant evidence that supports your claim, such as documents, communications, or witness statements. The evidence should substantiate the grounds on which you are challenging the sale deed.

Step 3:File a Lawsuit:

If you decide to proceed, your lawyer may file a lawsuit in the appropriate court seeking the revocation or cancellation of the sale deed. The legal action will typically be based on the specific grounds you are asserting.

Step 4:Court Proceedings:

Participate in court proceedings and present your case. The court will evaluate the evidence presented by both parties and make a determination based on the applicable legal principles.

Step 5:Appeal (if Necessary):

If the court's decision is not favorable, there may be an option to appeal the decision to a higher court.



Significant caselaws for sale deed cancelation:


Challenging or canceling a sale deed is a legal matter, and the grounds for doing so may vary based on the specific circumstances of each case and the applicable laws in the jurisdiction. Here are a few significant legal principles and cases that might be relevant to sale deed cancellation:


A. Fraud and Misrepresentation:

Case Law: Satish Kumar v. Surinder Kumar (2008):

The Delhi High Court held that if a party can establish fraud, misrepresentation, or undue influence leading to the execution of the sale deed, the court may consider canceling the deed.


B. Coercion or Undue Influence:

Case Law: Savitri Devi v. Ramesh Chand (2013):

The Supreme Court emphasized that if a party can prove that the sale deed was executed under coercion or undue influence, it could be a valid ground for cancellation.


C. Mistake of Fact:

Case Law: Dharnendra Kumar Sharma v. Saroj Sharma (2012):

The Supreme Court stated that a sale deed may be canceled if there is a mutual mistake of fact, and the mistake is fundamental to the transaction.


D. Lack of Capacity:

Case Law: Prakash Chand Sharma v. Santosh Sharma (2009):

The Rajasthan High Court held that if a party lacked the legal capacity to enter into the sale deed, such as being a minor, the deed could be canceled.


E. Illegal Consideration or Object:

Case Law: Jayaraman v. Abdul Khader (2013):

The Madras High Court emphasized that if the consideration or object of the sale deed is illegal or against public policy, it might be a ground for cancellation.


F. Failure of Consideration:

Case Law: P.R. Deshpande v. Maruti Balaram Haibatti (2019):

The Karnataka High Court considered the failure of consideration as a ground for canceling a sale deed, particularly when the seller fails to fulfill their part of the agreement.


It's important to note that these cases are illustrative, and the outcome of any specific case will depend on the facts presented and the applicable laws in the relevant jurisdiction. Seeking legal advice from a qualified property lawyer is crucial to assess the specific circumstances of your case and determine the most appropriate grounds for challenging or canceling a sale deed.


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