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What is a Sale Deed?

What is a Sale Deed?

Introduction 

A sale deed is a legal document that reveals the transfer of title, rights, duties, and ownership of a property from a seller to a buyer. It is the most significant document that is a legal report or proof for the buyer and seller. It is a necessary document for both the purchaser or the transferee and the seller or the transferor. The sale of the property is not legally complete until a sale deed is signed by both parties the buyer and the seller. Normally, a sale deed is signed only after both parties are satisfied and consent to all the terms and conditions.

Sale Deed 

When a buyer buys the property then the legal document requires for executing the transfer of ownership of the property is called Sale Deed which means the title is transferred from seller to buyer. It consists of the details of the property and sets out the rights and duties of each party. It is made on a non-judicial stamp paper and that is governed by the Registration Act 1908. These parties are also known as the ‘Vendor’ and ‘Vendee’ in legal documents. A sale deed indicates that the title of ownership has been transferred from the seller to the buyer, or the owner has been changed from the seller to the buyer. Section 54 of the Transfer of Property Act 1988, defines it as the transfer of ownership of immovable property for consideration. This transfer of ownership from the seller to the buyer is done through which document known as a sale deed. 

Advantages of a Sale Deed

There are some advantages of a sale deed which are as follows:

  • Protects Parties: It is the main advantage of a Sale Deed is to protect the rights of both the buyer and the seller. A specific, well-drafted deed will avoid inscrutableness and minimize legal risks.

  • Defines The Area: For the buyer, a key feature that is having on paper a very clear description of the property and also mentioning the square footage and location of the property that is being purchased.

  • A sale deed concludes the sale into a legal document that is enforceable by the law.

  •  A sale deed demotes complications as all money due can be mentioned in the document and makes the sale process more stable and comfortable.

  • It consoles that your property is not taken for granted given the existence of a registered and stamped legal document.

Parties involved in the sale deed

There are two parties involved in the sale deed that is given below:

  • Buyer: The first party who buys the property is called the Buyer or vendor of the property.

  • Seller: The second party who sells the property is called the seller or vendee of the property.

The names, ages, and addresses of both parties are to be duly mentioned in the sale deed. The parties should thereafter sign the sale deed with bonafide intention and it also needs to be signed by a minimum of two witnesses.

Elements of the Sale Deed

There are many elements of the Sale deed but are mentioned below:

  • Parties Description: Both the parties’ buyer and seller’s name, age, complete address, contact number, and other necessary detail should be mentioned.

  • Property Description: The identity Number of the property, the area of the property, and construction details should be given in the Sale Deed.

  • Sale Agreement: The Agreement is supposed to be carried out mutually under the terms and conditions so that it does not affect the rights and duties of the Buyer or seller in the future.

  • Clause: It states that a declaration from the seller of the reality is rightfully transferred and is free from all obstructions, litigations, charges, etc.

  • Pending Loan: If there is a pending loan on the property which is sold then it should be settled by the seller before proceeding with a sale.

  • Right to examine: The buyer has the right to examine that all the documents of the property are relevant before beginning with the registration.

  • Mode of Payment: The Sale Deed must include the mode of payment and the receipt of sale transactions and the party should decide the mode of payment before the sale deed.

  • Passing of Title: The property title should be passed to the new owner or buyer and all rights also be vested in the buyer.

Documents required for Sale Deed

Following give some documents which are required for the Sale Deed:

  • Name of both the parties buyer and Seller

  • PAN card and passport-size photos of buyers and Sellers.

  • The name of the person buying the stamp

  • Stamp duty fee

  • Name and addresses of two witnesses

  • Title deed or Draft of Sale Deed or Conveyance Deed

  • Khata Certificate and Extracts

  • The deal value and all the financial details plus receipt of registration charge payment.

  • In case of re-sale property then provide a copy of all registered last agreements.

  • If any loan on the property  then provide the Original Property Documents with Bank

  • The joint development agreement, GPA, & Sharing or supplementary Agreement between the landowner and builder

  • Allotment Letter of the Builder or Housing Board.

  • In case of the resale property then provide a no Objection Certificate from the Apartment 

  • Sale agreement with the Seller

The registration process for the Sale Deed

  • Book an online appointment with the sub-registrar or you can go to the reception of the sub-registrar office for the appointment.

  • Visit the facilitation center where all documents get verified before being sent to the sub-registrar but only the parties are allowed to enter the sub-registrar.

  • After that, the officials will request the buyer and the seller to mark their fingerprints and sign on all the pages of the documents which are attached.

  • The sub-registrar would again verify all the documents after close inspection and in case of any discrepancies then he could reject them.

  • Both parties move forward to the biometric division after the acceptance and the biometrics will be grasped for fingerprints and photographs.

  • After all of this process is finished then you will be issued a receipt within 15 days of the registration process and the buyer can collect the sale deed.

Conclusion 

It concluded that a sale deed is a legal document that reveals the transfer of title, rights, duties, and ownership of a property from a seller to a buyer. It is the most significant document that is a legal report or proof for the buyer and seller. A sale deed demotes complications as all money due can be mentioned in the document and makes the sale process more stable and comfortable.

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Author:

Radhika Punani
Ambala
I am Radhika from Ambala city. I qualified LLM from Kurukshetra University and B.A.LLB from Maharishi Markandeshwar University


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