The Sale Deed is a legal document that is very crucial when selling or purchasing an immovable property. It is in written form and mentions the transfer of the ownership of the Property from one person to the other person. The method of the Sale Deed draft must be adhered to validate the document and complete the registration process.
The buyer can obtain the ownership of a property for their lifetime with the help of a Sale Deed. The Sale Deed draft has many components and required documents which will be discussed in the article. This document will be very important when one tries to sell a property to prove their ownership and certification.
What is a Sale Deed?
A Sale Deed is a document that is of legal value, made to transfer the ownership of an immovable asset from one individual to another. The complete rights of a property are transferred to the buyer once the seller prepares the Sale Deed draft and registers it with the concerned Sub-registrar.
- It is mandatory to get the Sale Deed draft ready and registered because without it, the buyer’s ownership rights are not legally valid.
- The seller is known as the vendor in a Sale Deed, and the buyer is the vendee. In Hindi, the Sale Deed is called Bikrinama or Banana.
- In some cases, the Sale Deed is also called a Title deed, but there is a legal difference between the two terms that should be noted.
- While drawing a Sale Deed draft, many components are to be maintained and reviewed thoroughly. The Transfer of Property Act has deciphered several clauses in the Sale Deed draft, which should be followed by the buyer while making the Sale Deed draft.
- The best procedure is to draw a Sale Deed draft first, and then the additional clauses can be added or canceled in the draft accordingly with the consent of both the parties involved. After the Sale Deed draft is finalized, it is signed by both parties, and Sale Deed registration is done in the buyer’s name.
How to Draft a Deed of Sale?
The initial step of the transaction is to make a Sale Deed draft and then make changes accordingly when necessary. The Sale Deed draft needs a thorough revision of both parties before the registration takes place.
The documents needed while drawing a Sale Deed draft include the build plan, allotment letter from the builder, tax receipts, bills, power of attorney, and title documents. The resale will require previous agreements and documents of the buyer.
There are a few steps required while making a Sale Deed draft; they are as follows:
- The requirements must be thoroughly understood– An individual can contact any lawyer online to discuss this through.
- Sale Deed draft– The owner then discusses the queries with the lawyer online to finalize the drafting process accordingly, and the lawyer will complete the process in 3 to 4 business days.
- Printing on Stamp Paper– After completing and finalizing the Sale Deed draft, the document is printed on non-judicial stamp paper.
- Contacting the Sub-Registrar– The lawyer can fix a meeting with the sub-registrar of the property location to register a Deed.
- Registration– The lawyer and the individual registering it will arrive at the registrar’s office to sign the documents, and also two witnesses need to attest to the Sale Deed. The deed registration fees need to be cleared before signing.
- Completed registration– The documents which will be signed and charges will be cleared, only after which the registrar will issue the registered Sale Deed.
Components of a Sale Deed
The Sale Deed draft includes various components which are included in the document. They are as follows:
- Party Details– The name, address, contact info and age, and various details are to be elaborated in the Sale Deed draft for proper verification.
- Details of Property– The Sale Deed draft must disclose the property location, structure and construction details, area, and dimensions of the Property for the registration process.
- Indemnity Clause– This particular clause is added in the Sale Deed draft to ensure that the seller has paid every loan, taxes, and bill related to the land or Property. In case the loans are not cleared, the seller will clear them before the sale.
- Details of Payment– the owner must mention the amount for which they will be selling the Property. Any previously made advance payments or installments must also be written to avoid confusion later on.
- The method of Payment– The way the payment will be made must be clearly stated, such as bank transfers, cheques, cash, etc.
- Possession– The date on which the buyer will possess the Property must be stated in the Sale Deed draft.
- Witness testimony– Two witnesses, are compulsory according to law provisions and must provide identity proof. At least one witness from the buyer’s side and one from the seller’s side must be present to attest to the document for registration along with the buyer and seller’s signature.
Documents necessary for the registration of the Sale Deed
The documents required are:
- Sale Deed draft
- General Power of Attorney
- The building plan
- Allotment letter from the builder
- Title documents and previous ownership copies
- Recent tax receipts and bills paid receipts
- Joint development documents
The Sale Deed provides legal recognition for the ownership transfer, and it is crucial for buying and selling immovable land or Property. The registration of the Sale Deed draft is done with the Sub-Registrar of the concerned region. The stamp duty and registration charges are to be cleared accordingly.