"Sale" is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.
Sale how made.—Such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument.
In the case of tangible immovable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property.
Delivery of tangible immovable property takes place when the seller places the buyer, or such person as he directs, in possession of the property.
Contract for sale.—A contract for the sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties.
It does not, of itself, create any interest in or charge on such property.
Legal Commentary & Landmark Judgments: Section 54
Section 54 of the Transfer of Property Act, 1882 defines 'sale' and mandates that any transfer of tangible immovable property valued at ₹100 or upwards must be effected exclusively through a registered sale deed.
Crucially, paragraph 6 lays down the fundamental rule that a contract for sale 'does not, of itself, create any interest in or charge on such property'.
Section 54 is the supreme statutory rule governing real estate conveyance in India. Following the Suraj Lamp judgment, any purchase conducted through notarized agreements, Power of Attorney, or possession letters is legally ineffective to transfer ownership. Legal title passes only upon payment of ad valorem stamp duty and registration of the conveyance deed before the Sub-Registrar.