What is a Sale deed
Sale deed is the most significant document in the process of Transfer of Property. This is the conclusive proof for the above transfer. The above sale deed mostly executed for the purpose of transferring the immovable properties like Land and building. The consist of all the transaction details about the property and the terms and conditions for both the Vendor and purchaser. The sale of any immovable property is governed under Indian Transfer of Property Act, 1882. Registration is compulsory in case of sale of immovable property.
Why you need a Sale deed: It acts as an evidence for transfer and it makes us know the previous owners of the property. It also clearly says about the consideration.
Mandatory Registration: A sale deed is not legally binding unless and otherwise it is registered in the Sub-registrar office. The buyer and the seller has to sign before the witnesses.
Most important elements in sale deed
- The sale deed is a immediate transfer of property. But whereas the sale agreement is for a future transaction.
- Sale deed is an executed Contract. But whereas the agreement to sell is a executory contract.
- Sale deed is a compulsory registrable document. But whereas the agreement to sell is not a compulsory registrable contract.
Difference Sale deed & Agreement
- The sale deed is a immediate transfer of property. But whereas the sale agreement is for a future transaction.
- Sale deed is an executed Contract. But whereas the agreement to sell is a executory contract.
- Sale deed is a compulsory registrable document. But whereas the agreement to sell is not a compulsory registrable contract.
Steps in sale deed registration
- Step 1 – Title opinion: Before purchasing any property, it is mandatory for every purchaser to get a title opinion from a well trained Legal Practitioner so as to ensure the right of the vendor over the subject property.
- Step 2 – Sale Agreement: once the buyer and the seller comes to a conclusion, immediately, a sale agreement is entered upon. An agreement to sell is an agreement to sell a property in future. This clearly describes the terms and conditions of transfer of property.
- Step 3 – Stamp Paper: The stamp duty varries from state to state. Stamp paper to be purchased as per the prescribed stamp duty and the document to be printed in the same.
- Step 4 – Payment of Registration fee: The registration charges to be paid via Demand Draft.
- Step 5 – Signing the document: Both the buyer and seller to be present at the sub-registrar office on the fixed date and should sign the document along with witnesses before the Registrar.
- Step 6 – Collection of Registered Document: Once the document is authorised by the Registrar along with seal, the document is ready of despatch. The authorised person should collect the document.
Most important elements in sale deed
Property Description: He description of the property is the most important part which describes the subject matter of the transfer. The boundaries and the area to be accurately mentioned.
Sale Consideration: The price agreed in the sale deed between both the parties which the buyer should have to pay to the vendor must be mentioned in the same sale deed.
Possession: Must also specify the date of delivery of the complete possession of the transferred property. Not only the property but also the relevant documents in relating to the said property.
Indemnity: The seller has to declare that the proerty is free from all encombrance. The indemnity clause in sale agreement indemnifies the buyer against any legal disputes or legal defects in the property title.
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