What is a Sale Deed?
A sale deed is a legal document that documents the transfer of a property’s title, rights, and ownership from a seller to a buyer.
It is the most crucial document because it officially documents the proof for both the buyer and the seller. It is a necessary document for both the buyer and the seller, or transferee and transferor. The acquisition or sale of a property is not legally completed unless the buyer and seller sign a sale deed. A sale deed is often signed only after both parties are happy with the terms and circumstances.
Advantages of a Sale Deed
Protects Parties
Both the buyer’s and the seller’s rights are protected by the deed. A well-drafted, detailed deed will eliminate uncertainty and reduce legal dangers.
Defines The Area
For the buyer, having a well-defined description of the property being purchased on paper, including the square footage and location, is a significant benefit.
The following are some of the additional advantages of a sale deed:
- A sale deed is enforceable by law because it converts the sale into a legal document.
- A sale deed saves hassles since all money payable can be listed in the document.
- It also ensures that your property is not taken for granted due to the availability of a registered and stamped legal document, making the sale process more steady and comfortable.
What should a sale deed include?
In general, the details listed below should be included in a selling deed –
- Descriptions of the parties involved- each buyer’s and seller’s full name, complete address, contact information, age, and occupation.
- Description of the property being transferred- id number, correct address, property size, and construction specifications of the structure, if any.
- Indemnity & encumbrance clause- This includes a seller’s declaration that the property being transferred is free of any liens, lawsuits, and charges. In addition, the seller holds the buyer harmless from any pending accusations in this regard.
- Before proceeding with the sale, the seller should settle a pending debt taken out on the property as a mortgage. Before registering, the buyer has the opportunity to inspect all relevant documents.
- The sale consideration- It’s the final price at which a transfer is completed. If there is one, this part should also include the amount paid in advance. The parties should expressly agree on payment dates, modes of payment, and other details. Both figures and numbers should be used to describe the pricing and the specifics of the transactions. The receipts from the sale transaction should also be mentioned in the sale document.
- Delivery & possession of the property- The date of handover to and possession by the buyer should be included in the deed.
What is the process for getting a sale deed?
- Lawyers should be contacted to fully comprehend the requirement.
- To begin the procedure, you will need to provide some basic information.
- The lawyers will begin working on your document after all of the necessary information has been submitted and payment has been paid.
- You will also receive the first draft of your legal document within a few business days.
- You can assess the document and, if any changes are necessary, notify the author for adjustments.
Requirements of a Sale Deed
- The buyers’ and sellers’ names and addresses must be specified in the selling deed.
- A complete address for the property must be provided, as well as a description of the property.
- The sale price consideration agreed upon by the buyer and seller must be stated in the sale deed. That is, the amount that the buyer must pay when the sale deed is executed must be specified in the sale document.
- In addition, if the advance payment has already been made, it must be noted in the selling deed.
- The payment method must be specified.
- The time when the property title is transferred to the buyer must be specified in the selling deed. All paperwork pertaining to the property must be given to the buyer as well.
- Verify that the property’s title is free of any encumbrances.
- Unless it is enrolled in the sub-registrar office, a sale deed is not legally binding. On the date of the deed’s enrollment, both the buyer and the seller, as well as the witness, must be present in the registrar’s office.
- Stamp duty and registration fees must be paid in order to complete the registration.
Registration of a Sale Deed
To confirm the sale deed and close the contract, both the seller and the buyer must retain all important documents in the sub-office. registrar’s A sale deed’s registration entails:
- The property’s worth must be determined using the circle rate in that area.
- The real amount paid for the property is dependent on the area’s circular rates. When calculating stamp duty, the higher of the two numbers must be taken into account, as well as the circle rate and the actual price paid.
- In addition, a non-judicial stamp paper of the determined value must be purchased as a result.
- As a result, the deed must be supplied and typed on stamp paper.
- The final step in getting the sale deed registered is to compare the sub-registrar office. Two witnesses must accompany the parties.
What is the cancellation of a sale deed?
A deed can be canceled bilaterally by the seller and the purchaser if there is an agreement to that effect. Only if one party requests cancellation and the other refuses to accept it is the cancellation process initiated.
Documents required for a sale deed
Part 1:
The Extract: It is a necessary document for registering a new property. It’s also required if you want to transfer the property’s ownership at a later date.
General Power of Attorney: It is necessary to verify the sale or acquisition of a specific property by an established person acting on behalf of the property owner.
Copy of The Building Plan: To say that the property’s structure is lawful and was built in accordance with a set of laws and regulations.
Part 2:
No Objection Certification: When constructing a housing project, a developer may need to obtain as many as 19 NOCs from various authorities.
Allotment Letter: It is essential for obtaining a mortgage and is issued by the developer or a member of the housing authority, whereas a sale agreement is written on stamp paper.
Sale Agreement: It contains all of the terms and conditions, as well as the possession date, payment plan, and specification.
Part 3:
Possession Letter: The developer presents this document to the buyer.
Payment Receipts: If you’re buying a new home, keep the developer’s original payment receipts. If you’re buying a used home, ask for a copy of the receipts.
Property Tax Receipt: The prior owner must be contacted. It aids in the verification of the property’s legal status.
Part 4:
Encumbrance Certificate: It is necessary to state that the property has no outstanding legal debts or mortgages.
Completion Certificate: These documents confirm that the building was built according to a pre-approved blueprint.
Occupancy Certificate: These documents confirm that the building was built according to a pre-approved blueprint.
Read, also: SSMMS : Sand Sale Management & Monitoring System (SSMMS)
Necessary Sale Deed Components for Property Transfer