Sale Deed Registration

By- Adv Manisha Singh

WHAT IS A SALE DEED?

The sale deed is a legal document that used for transferring the ownership of a property from one person to another. This is the most common valuable document which contains the terms and conditions of the sale. A sale deed is considered to be valid only when it is signed by the parties. sale deed registration is governed by Registration Act, 1908 and should be registered within four months from the date of execution.

Section 54 of the Transfer of Property Act, 1882, defines the ‘The sale of immovable property’, as follows- “A sale is a transfer of ownership in exchange for a price or promised or partly paid and part promised.”

ADVANTAGES OF SALE DEED

A sale deed is one of the most common legal documents in which involving the transfer of property transactions.

• Avoids ambiguity- A sale deed registration is a document clearly defines the acts, rights, and obligation of the parties, therefore it reduces the ambiguity among the parties to the contract.

• Provide legal protection- A sale deed registration is drafted by a legal draftsman on a non-judicial stamp paper, so there is always a requirement of a legal draft and if the value of the asset involved is high then it must be drafted by an experienced person.

There are some important clauses while preparing a sale deed registration, these  are as follows:

-Description of the parties

-Date and Place

-Description of the property

-Passing of the title

-Execution

-Indemnity provision

-Registration

- Consideration

- Rights and obligations of the Parties

- Dispute resolution

Other important facts of sale deed registration-

• Responsibilities and timeline for the procedures should be completed.

• Declaration by the seller is mandatory that the property is not subject to any government acquisition or any encumbrances.

• All expenditures like stamp duty, drafting, and the fee of registration, etc., thereby all these expenses should be distributed between the parties.

• The nature of the title retained by the seller along with any encumbrances such as lease, mortgage, and charge on the property.

SALE DEED REGISTRATION-

STEPS

1. A sale deed registration is drafted by any legal expert/advocate.

2.  A stamp paper is purchased and stamp duty is paid as per the circle rates.

3.  Mandatory to pay the government registration fee.

4. Both parties (buyer and seller) and witnesses should visit the sub-registrar office on the fixed day for their registration.

5. After registration, the sale deed registration can be collected after a week.

LEGAL FORMALITIES OF THE SALE DEED

-All the pages of sale deed must be signed.

-The sales deed should be witnessed by two witnesses with giving their full names and identifications and signatures.

-All the concerned parties (both parties and two witnesses) must be present at the time of registration.

-All property required to be registered under the jurisdiction of sub registrar’s office.

-All the documents must be required in their original form.

-The buyer has to authenticate all the documents such as photos, signatures and thumb impressions must be stamped.

-All original documents must be registered within 4 months from the execution.

SALE DEED REGISTRATION IN DELHI-

-Stamp duty is payable 4% if the buyer is female and 6% if the buyer is a male.

-Registration fee is payable 1% of the total sale consideration along with Rs. 100- for pasting charges.

-The stamp duty is payable as per the circle rates which is fixed by the Revenue Department of the government of N.C.T of Delhi., after that the stamp duty will be calculated as per the total sale consideration amount mention in the sale deed registration.

-Two witnesses along with Aadhaar Card or Voter ID need to be present in the sub-registrar office at the time of registration.

- Two passport size photographs and identification documents (PAN card/Aadhaar/Voter ID) of both parties the vendor(s) and vendee(s).

- In any case, if a party is unable to visit in the sub-registrar office, he/she can give a power of attorney to someone else to appear on his or her behalf.

-If the total sale consideration exceeds Rs.50 lakhs, then the buyer will have to deduct 1% TDS of the sale consideration.

SALE DEED

The sale deed is made and executed at Delhi on this ____________ day of  _________ between  ________(herein called the Vendor (s)  ) of one part.

AND IN THE FAVOUR OF

The sale deed is made and executed at Delhi on this __________ day of  _________ between _________ (hereinafter called the vendee(s) ) of the other part.

The expression of the buyer and seller shall include the parties itself, their respective legal heirs, executors, successors, legal representations and their assigns nominees.

Whereas the vendor is the absolute owner in the possession of property no. _____ measuring _______ sq. yrds and bounded as;

EAST:

WEST:

SOUTH:

NORTH:

Whereas the vendor herein has purchased the said property more fully described in the Schedule hereunder as document no. ………, Addle. Book-I……., Vol. No……. pages…….to…… on date…….. duly regd..in the office of Sub Registrar……. Delhi.

And whereas the vendor is in need of funds in order to meet his bonafide legal requirements, has decided to sell the property in his sound and disposing mind without any pressure, force or coercion and agreed to transfer the above said plot/property to ‘Vendee’ for the sum ____________________ Of ___________ Rs……..…….for which the Vendee after scrutinizing the status of the property and after satisfaction regarding the title of the Vendor has agreed to purchase the same against the said consideration.

NOW THIS DEED WITNESSETH AS UNDER: -

1. That in pursuance of the aforesaid agreement and in consideration of sum Rs ……………………………. the entire amount has been received by the vendor from the vendee to the execution of the sale deed, the receipt of which is hereby admitted and acknowledged by the vendor.

2. That the vendor hereby has absolute right, title and full power to sells, conveys, transfer and assign the above-mentioned property and forever with all rights, title and interest of the same and enjoy all rights of ownership, etc.

3. That the actual possession of the above said the land has been handed over by the Vendor to the Vendee who is in possession at the time of registration of the sale deed.

4. That all expenses of this sale deed shall be paid by the Vendee such as stamp duty, execution and registration fee, etc.

5. That all taxes, charges, dues electricity charges, water bill, outstanding bills, house tax, etc. in respect of the said land for the date of execution of the sale deed must be paid by the vendor and thereafter the same must be paid by the Vendee.

6. That the Vendor hereby admit, agrees and assures the Vendee to help and assist him to transferred the land or mutated in the relevant records of the Revenue Department and any other concerned department or Vendee shall have full right on the transferred property in his/her own name from concerned department as per the sale deed even in the absence of the Vendor.

7. That all the rights, terms and conditions and easements shall be attached with the said property and also been conveyed and transferred with the said land, unto the Vendee.

8. That the Vendor has delivered the said property to the Vendee under Sale is free from all sorts of encumbrances like Sale, Mortgage, Gift, Transfer, Litigation, decree and lease etc. and no defect in the title of the property and if is proved otherwise at any time and if the Vendee suffers any loss, then the vendor is fully liable and responsible for that loss and vendee shall be entitled to recover or compensate all his/her all losses from the vendor.

9. That the Vendor has to deliver the previous title documents of the property.

In the witness whereof, the parties have affixed their signature, thumb mark on the sale deed after understanding of the contents of the same on the day, month and year the above-written document in the presence of the following witnesses:

WITNESSES: -

1.VENDOR

2.VENDEE

Author:

eStartIndia Team