Sale Deeds are used in every type of sector nowadays, be it commercial or non-commercial, to transfer property ownership legally. There are certain rules to follow, but once it is registered, it becomes irrevocable and valuable. Let’s know the components of the draft Sale Deed of immovable property.
What is a Sale Deed?
- It is a legal instrument through which the legal owner of the property can make property-related transactions in exchange for money or consideration.
- The buyer has to pay the price in duration as specified in the Sale Deed as the property possession is also transferred.
- The first step is to make a draft Sale Deed of immovable property and then finalize it after reviewing it with both parties. Lastly, deed registration with the sub-registrar, with proper documents attached.
- Once the draft Sale Deed of immovable property is registered, the buyer becomes the rightful owner of the purchased property and can enjoy its rights and privileges.
- In the draft Sale Deed of immovable property, the seller is the “vendor,” and the buyer is the “Vendee.”
- In some places and instances, some people may refer to it as “title deed,” but both the terms have significant differences that are to be kept in mind while executing a draft Sale Deed of immovable property.
Essential Components of a Sale Deed
There are a few essential components that are to be included in the draft Sale Deed of immovable property. These are as follows:
- Both party details and information: The draft Sale Deed of immovable property must have the details of the buyer and seller and other related information such as names, addresses, contact info, age, etc.
- Details of the property: The draft Sale Deed of immovable property must have the necessary property details to register it without any complication and to help in the verification process. These details include property area, structure, location, age, and overall dimensional details.
- Clause of Indemnity: This is stated in the draft Sale Deed of immovable property to ensure that the buyer has cleared every loan, mortgage, and liability related to the property due to the transfer date.
- The mode and details of the payment: The seller must specify the price of the property involved in the draft Sale Deed of immovable property. The seller should also input, if any, an advance was made for the purchase to be initiated. The method in which the seller will pay shall be explicitly recorded and maintained. It can be by cash, check, or bank transfer as required.
- Property possession: The date when the property possession will be delivered should be stated in the draft Sale Deed of the immovable property before registering it with the sub-registrar who will authorize the deed registration.
- Property witnesses: Two witnesses must be present while signing and registering the Sale Deed as per the law. One from the vendor’s side and one from Vendee’s side.
There are some added disclosures that the seller is obliged to maintain and clear within the specified time before the draft Sale Deed of immovable property is registered.
Key points to note when executing a Sale Deed
There are significantly important points to note when a draft Sale Deed of immovable property is made. These are:
- A clause that transfers the property ownership rights to the buyer must be present in the draft Sale Deed of immovable property
- The title of the property ownership and property itself should be free from any kind of liability or encumbrance.
- The encumbrance status must be cleared by the registrar’s office and certified accordingly.
- Any bill related to the property, such as water bills, gas bills, and electric bills, should be cleared before transferring it to the buyer.
- There shouldn’t be any due related to the property, such as a mortgage, Maintenance, etc.
- All the terms and conditions should be specified in the draft Sale Deed of the immovable property before finalizing it.
- The seller must issue an invoice that the payment has been cleared or any advance that was made before it.
How to Draft Sale Deed?
There are a few steps according to which one can successfully draft a Sale Deed or take legal consultation for doing the necessary. These are as follows:
- Hiring a lawyer is beneficial for understanding the requirement of both parties regarding property transfer.
- The lawyer will then help you to draft the Sale Deed according to the additional clause or conditions that may be specified by the buyer or seller.
- It is printed on non-judicial stamp paper after the draft has been corrected and approved by the parties.
- An appointment needs to be made with the sub-registrar at their office to finally register it.
- The lawyer and two witnesses are mandatory for the successful registration of the Sale Deed.
- The deed should be attested, and registration charges need to be cleared for it to be complete.
- Draft Sale Deed of immovable property.
- POA (if any) (power of attorney).
- Building plan by Statutory Authority
- Title documents
- Allotment letter of the Builder
- Bills and tax receipts
The property ownership transfer is a crucial process and can be done by drafting a Sale Deed with legal consultation and multiple clauses, which will be finalized and registered as per the mutual consent of the buyer and seller. It is mandatory to get it registered with the sub-registrar as it makes this deed legally valid and makes the buyer the right owner of the property.