SALE DEED REGISTRATION
SALE DEED REGISTRATION
Generally for every property identity the Sale deed which plays a major role at the time of selling such land, house, buildings etc. The sale deed which acts as an evidence for who owns the land or such mentioned property. So the legal documents required all the basic terms and conditions which were included at the time of registration. Having the registered deed which safeguard the property from unauthorized one. In this article we can deal with all the important aspects for the sale deeds.
What is a Sale Deed Registration?
A Sale Deed Registration is the most important legal document in the process of transferring property. It is conclusive proof of the above transfer. The above sale deed is mostly executed to transfer immovable property such as land and buildings. They consist of all the transaction details about the property and the terms and conditions for both the seller and the buyer mentioned in the sale deed Registration. The sale of any immovable property is governed by the Indian Transfer of Property Act, of 1882. Registration for the sale of immovable property is mandatory.
Why do you need to register a sale deed?
Sale deed acts as evidence of transfer and it lets us know the previous owners and details of the property is called a property sale deed. It also clearly states the consideration.
Mandatory registration:
A sale deed is not legally binding unless and until it is registered with the Sub-Registrar Office. The buyer and the seller must sign in front of witnesses before the sub-Register then only the title of the property will be transferred. The transaction of the property can only be completed with sale deed registration so the registration of the sale deed is mandatory.
Documents required to register a deed of sale:
- Name of both the parties involved in the sale of the property
- Proof of identity for buyer and seller
- Passport-sized photographs of both buyer and seller
- Name and address of the witnesses
- Copy of the contract of sale
- Encumbrance certificate from the office of the sub-registrar
- Property tax receipt
- Completion certificate (if the building is new)
- Power of attorney
- A sale agreement was created with the seller.
Advantages of registering the deed of sale:
Legal protection:
Registration of the Sale Deed gives authority to the property to protect the buyer from legal disputes. The sales deed can be used as evidence in court if any infringement takes place against your property to ascertain legal protection registration of the sale deed is compulsory.
Peace of mind:
The well-drafted deed sale can reduce the level of risk and It provides clarity about the terms and transactions of the property and money. It ensures that both parties benefit and helps to avoid misunderstandings after the deal is done.
Authority:
The sales deed changes the ownership of the property. It gives the buyer full access to the property. It allows the buyer to mortgage or rent the property with full rights which is only possible if the sale deeds are registered.
Difference Between Sale Agreement and Sale Deed:
SALE DEED | SALE AGREEMENT |
The ownership is transferred to the buyer | Ownership is not transferred to the buyer and remains with the seller. |
The sale deed is an immediate transfer of property | The registration of the sale agreement is for a future transaction. |
The Sale Deed grants the buyer the right and interest in the property | The sale agreement contains the terms and conditions under which the property can be transferred |
Executed Contract | Executory Contract |
Sale deed is a compulsory document | The agreement to sell is not a compulsorily registrable contract. |
Stamp duty and registration fees are necessary to execute the sale deed | The consent of both parties’ before execution of the sale deed is enough for the sale agreement no stamp duty is necessary. |
Sale deeds can be canceled if the parties are not satisfied by finding the help of the court. | Easy to cancel the sale agreement if the parties do not fulfill the terms and conditions. |
The most important elements in the deed of sale :
Details of the parties:
The sale deed should mention both parties’ names, addresses, and contact details, as well as the father’s names of both parties, etc. (i.e. buyer and seller) involved in the transaction.
Property Description:
The description of the property is the most important part of describing the subject matter of the conveyance. The boundaries and area must be accurately stated with identity number, exact location details, property dimensions, and construction details then only they can proceed with the deed of sale.
Sale consideration:
The sale price that is agreed upon by both buyer and seller needs to be mentioned in the execution of the sale deed. Also if any amount is paid in advance or the amount is paid in installments the date of such installment needs to be mentioned so every clear detail regarding the consideration made or going to be made needs to be mentioned in the sale deed.
Possession:
After completion of the sale deed, the title of the property must be transferred from the seller to the buyer the title of transfer needs to be compulsorily mentioned in the sale deed and must also state the date of delivery of full possession of the property transferred. Not only the property but also the relevant documents required for the registration of the Deed of Sale in respect of the said property.
Indemnification:
The seller must declare that the property is free from all encumbrances. And the seller should clear every statutory charge regarding the property before the sale deed that is going to be executed. An indemnity clause in the contract of sale will indemnify the buyer against any litigation or defects in title.
Steps in registering the sale deed :
Step 1 - Title opinion:
Before purchasing a property, every buyer must obtain a title opinion from a well-trained legal practitioner to ensure the seller’s title to the property.
Step 2 - Deed of Sale:
The sale deed needs to be properly drafted by an advocate or any professional expert in that field by analyzing the details of the property based on the documents. Once the buyer and seller have agreed, a deed of sale is immediately executed. A sale deed is an agreement to sell a property in the future. It clearly describes the terms and conditions of the transfer of the property.
Step 3 - Stamp paper:
Stamp duty varies from state to state. Stamp paper must be purchased as per the prescribed stamp duty and the document must be printed on the same. Eg. in Tamilnadu the stamp duty for registration of a sale deed is 7% out of 11% of registration fees. It is good to keep in mind that stamp fees are the same for every proprietor (Male, Female, or Joint owner) based on the market value of the property.
Step 4 - Online application :
- The application for sale deed registration is made online through the government web portal: TNREGINET.GOV.IN. if the sale deed registration is based in Tamilnadu and there will be different online websites for various states for registration of sale deeds in their state.
- The same Details mentioned in the Sale Deed need to be uploaded to the portal.
- Afterward, an advocate appointed by you will handle the process of registration.
- The registration fee is to be paid through Demand Draft(DD).
Step 5- Payment of Registration Fee :
The registration fees of sale deeds vary based on the value of the property that is about to be sold and the fees are all equal for all who are about to register the property.
category | Stamp duty | Registration Charges | Total fees |
women | 7% | 4% | 11% on the total value of the property |
Men | 7% | 4% | 11% on the total value of the property |
Joint ventures | 7% | 4% | 11% on the total value of the property |
Step 6 - Registration at the SubRegister Office :
Both the buyer and the seller and witnesses who have to be present at the sub-registrar’s office on the fixed date should sign the document along with witnesses before the Sub-registrar. After receiving all the documents from the registrar he checks everything that was presented before is proper. If he finds everything clear then he will execute the sale deed along with the seal and that was the close date of the sale deed.
Step 7 - Collection of the registered document:
Once the document has been authorized by the Registrar along with the seal, the document not be handled within a day first the Registrar will provide you with a receipt, and after one week the document that is ready for dispatch can be received by the authorized person by showing the receipt to the registrar you can collect the sale deed.
FAQ
FAQ ON Sale Deed Registration:
1. What are the properties that can be bought or sold through the execution of a sale deed?
- Empty land can be bought by the sale deed.
- Land or houses built on that land can be bought or sold through the sales deed.
- Apartments, Flats, or Gated Communities can be bought through the execution of a sale deed.
2. Where can we register the Sale Deed?
The sale deed can be registered in the sub-registrar office in the jurisdiction where the property is located but cannot be registered in the other jurisdiction and where both the parties buyer and seller as well as the witness need to present in the registered office directly in a sign for the registration process.
3. Whether the sale deed can be canceled after the registration?
Yes, the sale deed can be canceled after the registration according to sections 31 to 33 of the Specific Relief Act 1963 within 3 years from the date of registration and the reason for cancellation needs to be a substantially significant reason not be random reason if it is a random reason then the cancellation of registration cannot be done and the process can done only with the help of legal proceedings.
4. What is the validity period of the sale deed?
The sale deed is valid only after the registration from the sub-registrar office which is signed by both buyer and seller as well as the witness. The sale deed is valid till the date of the sale of the property by the owner to another person otherwise the title of the property remains with the buyer.
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