- The fundamental legal document documenting the sale and transfer of property ownership from the seller to the buyer is a sale deed. It is also necessary for the buyer’s later sale since it demonstrates his evidence of ownership of the property.
- The sale deed is signed following the signing of the sale agreement and after the buyer and seller have agreed to the terms and conditions outlined in the selling agreement. In this blog, we will discuss what a Sale Deed is and what its benefits are.
What is a Sale Deed?
- The sale deed is the fundamental document through which a seller transfers his claim to the property to the buyer, who then becomes the sole owner of the property.
- The buyer should double-check the seller’s title and must take legal advice from a professional lawyer before signing the sale deed. It is vital to ascertain whether the property is subject to any charge or encumbrance and whether the purchaser is acquiring the property with such an encumbrance.
- Otherwise, the seller must refund the loan and have the encumbrances removed from the property documentation. If the property is encumbered, the buyer should take legal advice from his lawyer and verify the documents with the registrar’s office.
Benefits of a Sale Deed
A sale deed is used by the seller to transfer ownership to the buyer. When rights are transferred, the buyer has the following advantages: –
It is a crucial tool that allows you to sell an immovable asset and transfer rights from one person to another for a lifetime. Without a sale deed, one cannot claim ownership of any property.
The following are the advantages of the Sale Deed document:
- It is a document that is legally binding.
- It enables Sale transactions to be completed securely and conveniently.
- It safeguards the rights of both contracting parties.
- It clearly states the Purchaser’s and Vendor’s rights and responsibilities.
- It specifies and discusses the attribute in detail.
- A well-drafted deed may eliminate uncertainty and reduce hazards.
- The whole selling procedure is now stamped and recorded.
Procedure for Obtaining a Sale Deed
A Sale Deed must be registered under the Registration Act of 1908. To get a sale deed, you must first complete the following steps: –
- Step 1 – A lawyer should be present to conduct a transaction and comprehensive research.
- Step 2 – Wherever feasible, correct information should be provided.
- Step 3: After gathering all of the necessary information, the Lawyer will go to work on your document-related concerns.
- Step 4 – Within a few days, you will receive a draft from your lawyer.
- Step 5– Comprises examining and scrutinizing all of the supplied material. Please tell your lawyer if any changes need to be made.
What Should a Sale Deed Contain?
The following information should be included in the sale deed:
- Parties descriptions: Names, complete addresses, phone numbers, ages, and occupations of both buyers and sellers.
- Property Description: Identification number, specific geographic data, property measurements, and, if applicable, building details.
- An agreement is carried out jointly under the conditions by which neither party’s rights are affected. And is carried out before the sale transaction.
- Clause: The seller declares that the property being sold is free of any encumbrances, lawsuits, and charges. The seller covers any outstanding costs.
- Pending Debt: Before proceeding with the sale, the seller should clear any pending loan taken out on the property as a mortgage.
- Right to Inspect: Before registering the property, the buyer has the right to examine the papers relating to it.
- The price at which the transfer agreement is concluded.
- Advance Payment and Mode of Payment: This should contain information about any advance payments made as well as receipts for sales transactions. The price should be stated in words and figures. The parties must agree on the payment method and other information.
- Title Transfer: The buyer receives ownership of the property. All rights are passed to the buyer once the title is transferred.
- Possession by the Buyer: The Conveyance Deed should state explicitly when the property will be delivered to the buyer.
What is the Sale Deed Number?
Stamp duty and registration fees are paid when registration is finished. The number is mentioned on the payment slip, and a government official has stamped each page of the sale deed. Your sale deed number may be found in the upper right corner of every page.
What is Sale Deed Registration?
The property paperwork must be held with the Sub-Registrar until the transaction is completed. The following are included in the registration: –
- The property’s value
- Stamp duty is calculated using the market rate, and the real price is taken into account.
- Non-judicial stamp paper value
- The sale deed will be executed on stamp paper.
- Both parties must sign the paper in the presence of two witnesses.
- Finally, it must be filed with the Sub-Registrar.
What Documents are required for the deed registration?
The following Sale Deed documents are required for the deed registration:
- If the owner and the builder have a share arrangement, it should be recorded.
- Power of attorney, if any
- The government’s blueprint
- Letter of Allocation from the Housing Board
- If a loan is obtained, original property papers must be filed with the bank.
- Purchase Contract
- If there has been any resale, please provide a copy of any existing agreements.
- If there is any resale, a Certificate of No Objection is required.
- Receipts for Real Estate Taxes
- Certificate of Completion and Encumbrance
- Identification of all persons involved, including witnesses
- Passport-size photographs
- Stamp Duty Receipt
- Possession Letter
- Occupancy Certificate
- A sale deed is a legal and important document that serves as proof and is executed at the moment of sale and transfer. When you purchase or sell property, the transaction should be completed and signed by both parties, the Vendor and the Purchaser.
- It should also take place in the presence of at least two witnesses. When completed, it must be registered by the Sub Registrar within four months under the Registration Act of 1908.
- As a result, a sale can only be consummated with correctly executed transactions. We hope that this blog has helped you understand what a sale deed is.