The schedule of the property in a sale deed provides a detailed and precise description of the property being transacted. It includes information such as location, boundaries, area, and any other specifics that identify the property.
Banks often refer to the schedule of property in the sale deed when evaluating the property for loan approvals. It helps them ascertain the property’s specifics and value.
What is a Sale Deed?
A sale deed is a crucial legal document that facilitates the transfer of property ownership rights. It’s a type of conveyance document akin to mortgage deeds, gift deeds, and lease deeds. The sale deed holds legal value and is essential for registering the new owner’s name. As mandated by the Indian Registration Act, the sale deed must be registered with the sub-registrar of the jurisdiction where the property is located. Only upon successful registration of sale deed does the buyer become the property’s lawful owner.
In the context of a sale deed, the seller is referred to as the ‘vendor,’ and the buyer is termed the ‘Vendee.’ The Transfer of Property Act stipulates several clauses to be included in the sale deed, such as:
- Parties involved
- Detailed property description
- Sale consideration
- Payment amount and method
- Advance payments or instalments
- Title transfer by the seller
- Delivery of possession
- Encumbrance clause
- Indemnity clause
- Registration fees
- Warranty clause
- Dispute resolution
The schedule of the property in the sale deed provides an in-depth description of the property, ensuring clarity and transparency in the transaction.
What is the Schedule of a Property?
The ‘Schedule of a Property’ in a sale deed provides a detailed and precise description of the property being transacted. This ensures clarity and transparency between the involved parties. The schedule is typically divided into three sub-schedules:
- Schedule A: Describes the larger extent of the property, especially if it’s an apartment complex. It provides details about the property’s boundary, location, and overall area.
- Schedule B: Specifies the exact number or identifier of the flat or unit within the property. This ensures proper record-keeping and identification of individual units.
- Schedule C: Details any undivided share of land associated with the units being transferred. This is crucial for properties where multiple units share common land or amenities.
Essential points to consider regarding the ‘Schedule of Property’ in a sale deed:
- Taxes and Duties: The government may impose taxes or duties on components related to the schedule of the property. These charges are typically borne by the buyer and paid to the vendor.
- Registration: It’s crucial to register the schedule of property in the sale deed. Upon purchase, the vendor provides the necessary documents to the Vendee, who should safely store and acknowledge the receipts.
- Property Division: The division of property among co-owners is facilitated using the schedule in the sale deed, along with mutation agreements signed by all parties.
- Consistency with Sale Agreement: The details in the schedule of the property should align with those in the sale agreement. If discrepancies exist, a separate designated document may be required for clarification.
- Loan Procurement: If a bank doesn’t recognize a registered schedule of property during loan processing, it indicates a technical flaw. All details should be accurately included to rectify this.
- Conveyance Document: The conveyance document should incorporate the ‘Schedule A’ of the property, providing a clear and mandatory explanation.
- Separate Schedule Not Always Required: If the property details are already comprehensively defined in the sale deed, a separate schedule might not be necessary.
Example of the Scheduled Property
The ‘Schedule of Property’ in a sale deed offers a comprehensive description of the property being transacted. It serves as a unique identifier, detailing specific aspects like location, area, boundaries, and landmarks. Here’s an example of how the schedule might be presented:
- Location: Situated at road number ____, property number ____.
- Area: Located in the village/city _____ with an area measuring ____.
- Flat Number: ___
- Area: ____ square feet
- Terrace: ___ (if present)
- Undivided Interest in Land: ____ square feet
- Parking Area: ____ square feet
- North: _____
- South: _____
- East: _____
- West: _____
- Car Parking/Garage: (if present)____
When registering the property with the sub-registrar, the owner should also produce additional documents, such as flat drawings, maps, common area details, and the schedule of the property. These are vital for the registration and verification process.
The schedule of property in the sale deed is necessary and mandatory information that is to be added clearly and concisely. The owner can take legal consultation to draft one and clarify any queries regarding the schedule of property in the sale deed.