A sale deed is a critical document in the property transfer process. The ownership of any property is transferred from one party to another through the sale deed. It is compulsory for buying and registering properties. Buyers become the new and legal owners of properties after the registration of their sale deeds.
Knowing more about the sale deed
Here are a few key aspects of the sale deed that you will find useful:
• The sale deed is a legal document containing the terms and conditions related to the sale of the property.
• It is executed legally by the buyer and seller of the property for ownership transfer purposes.
• It mentions the price that has to be paid, the property description, the ownership transfer process, and so on.
• It is a document that proves legal ownership of the property although it is only possible once the deed is signed and registered.
• Agreements for the transfer of interest in immovable properties valued at more than Rs. 100 should be registered as per the Indian Registration Act of 1908.
• The sale deed will only have legal validity if it is registered at the sub-registrar’s office. The deed will be executed on non-judicial stamp paper, bought as per the State’s prescribed value.
• Stamp duty varies across Indian States, usually hovering around 4-6% on the sale value of the property.
• For the registration of the sale deed, the seller and buyer should sign the same before a minimum of two witnesses.
Important aspects that should be there in the sale deed
Here are some aspects that the sale deed should contain:
• Name and address of all the parties along with contact information and age.
• Property description including type, full address, area, dimensions, and the schedule.
• The sale price/consideration agreed upon should be mentioned along with details of any other advance, if paid. The payment mode should be mentioned along with dates for installments if that is the mode of payment. The sales transaction receipts should be mentioned too.
• The time when the property title gets transferred should be specified, while all property-related documents should be given to the buyer. The actual possession/delivery date should also be mentioned.
• The title of the property should be free from litigation, charges, encumbrances, and so on. All statutory dues/charges should be cleared by the seller before executing the sale deed, along with mortgages/loans.
How does the whole process work?
• The buyer first gets all necessary documents from the seller and then takes legal assistance to create the sale deed.
• The deed will have all clauses/elements agreed upon by the parties.
• The sale deed is sent to the seller thereafter for approval.
• Once this is done, then the transaction is finalized and the registration procedure can be concluded at the sub-registrar’s office.
Necessary documents for sale deeds
Here are the documents that are required to execute any sale deed:
• Sale agreement/agreement to sell
• Property tax receipts
• Payment receipts
• Encumbrance certificate
• Building plan/layout copy
• NOC (no objection certificate)
• Occupancy certificate
• Completion certificate
• Allotment letter
• Possession letter
• General Power of Attorney (if a person authorized by the seller is selling the property) if applicable.
Cancellation, Certified Copies, and More
• The sale deed’s certified copy can be obtained from the sub-registrar’s office within two weeks after filing an application.
• If the owner loses the sale deed, then a complaint should be immediately filed at the nearest police station. A non-traceable certificate is given to the owner after the FIR is filed.
• An advertisement should also be published in the newspapers about the loss of the deed after getting this certificate.
• An affidavit should be filed and the fees paid to the sub-registrar for getting the certified copy of the sale deed.
• It should be a notarized affidavit while containing the FIR copy attachments, property details, advertisement copy, and non-traceable certificate. There should be a signed undertaking mentioning that the information is authentic.
• The certified copy will be issued in 2-4 weeks after the completion of the procedure.
• Any party can cancel the deed through a cancellation suit in the Court if there is any disagreement. The deed may be cancelled mutually through the registration of a cancellation deed too. The ownership of the property will go back to the seller in this case.
• The Court will send the decree of cancellation as a copy to the sub-registrar’s office. The facts will be noted accordingly.
Taking legal help is always recommended while executing a sale deed, especially in terms of including the right clauses in the agreement. You should keep the above-mentioned points in mind for a smoother experience.
