Deeds and Instruments
Deeds and Instruments tests the formalities that make a document legally effective: execution, stamping, attestation and registration. A deed is a written instrument by which an interest, right or obligation is created or confirmed; historically it was signed, sealed and delivered, but in India a seal is not essential for every deed. A deed poll binds one party; an indenture records reciprocal obligations.
Essentials
- Parties and capacity: correct legal names, descriptions and authority of signatories.
- Recitals: title, prior dealings and transaction background.
- Operative words: ‘hereby conveys’, ‘assigns’, ‘demises’ or ‘grants’ must match the transaction.
- Property schedule: precise description, boundaries, measurements and title reference.
- Execution block: signatures, witnesses, attestation and date.
Stamp and registration
Under the Indian Stamp Act 1899 and State stamp laws, an instrument must bear the prescribed duty. Deficiently stamped instruments are inadmissible under Section 35 until impounded and duty plus penalty is paid. Registration is compulsory under Section 17 of the Registration Act 1908 for gifts of immovable property, non-testamentary instruments creating or declaring rights in immovable property, and leases exceeding one year. Section 54 of the Transfer of Property Act 1882 requires registration of a sale of tangible immovable property worth ₹100 or more; Section 107 requires registration of a lease exceeding one year.
Worked example
A sale deed records receipt of ₹25 lakh but has no receipt clause or schedule. The buyer cannot prove payment from the deed alone and registration may be refused for want of property description. The correction is to add a receipt clause, the schedule and the vendor’s covenant of title before execution, and then register under Section 54.
Traps
Missing schedule; no receipt for consideration; one witness to a will, although Section 63 of the Indian Succession Act 1925 requires two; unregistered lease for more than one year; and a power of attorney for immovable property that is neither authenticated nor registered where Section 17 applies.