According to Section 54 of the Transfer of Property (TP) Act, 1882, a sale is defined as t...
All of us have heard about various ways through which transactions take place like mortgaging of land, leasing out land and buying real estate’s or renting out land. In order to engage in this or to conduct these transactions, a person may come across a renowned phrase “Sale Deed“. It contains the record of the transfer of ownership. When someone buys a house etc. the deed of sale is one of the important documents a person has. It is of utmost importance to both buyers and sellers. To understand the whole concept related to this term, we need to understand its meaning.
A Sale deed is a legal document that enlists the details regarding the sale of a property. A deed of sale shows that the ownership of a property has been transferred from one person (seller) to the other (buyer). It contains proof of such transfer. The deed of sale enlists the terms and conditions also, apart from the title of a property, of the agreement with respect to the sale of a property. The sale deed of land is made on a non-judicial stamp paper of a value prescribed by the state government.
The first and foremost step is to draft a deed of sale. It may be done by a professional lawyer. As per your responses, the lawyer shall draft a deed and seek your approval.
Once you approve the draft of the deed of sale, it will be printed on a non-judicial stamp paper.
Thereafter an appointment is fixed with the sub-registrar. The sub registrar’s office shall be selected according to the jurisdiction of the property where it is situated.
The document is signed by you and two witnesses at sub registrar’s office, and it can be registered after paying the sale deed registration charges. Once the above-mentioned formalities are completed, the registered deed of sale will be issued by the sub-registrar.
The following documents are required for registration of a deed of sale:
The buyer and the seller are required to make certain payments with respect to a deed of sale. A buyer pays for the stamp duty and registration fees. In contrast, the seller ensures that there are no outstanding dues with respect to the property like property tax, electricity and water bills etc. these must be cleared prior to signing the deed of sale agreement.
There are certain important ingredients that must contain in a deed of sale draft before being legalised. These are mentioned below.
After a deed of sale is signed, the buyer gets the title of the property with all the rights to the property.
Before executing a deed of sale, the buyer must ensure that the title of the property is free of all hindrances. The buyer can verify the status from the registrar’s office before purchasing a property. Once the status is checked for any hindrances, the buyer must check that all the statutory payments have been cleared and no outstanding due or permission has to be taken for the transfer of property.
The buyers must know that the deed of sale is one of the essential documents that establish the proof of ownership after a property is bought; therefore, they should acquire this document.
Once the concept deed of sale is signed, one can next proceed with the registration, the deed of sale shall register the sale of the said property. The parties under the deed of sale reach the sub registrar’s office along with the witnesses and the required documents and sign the property deed. The certified copy of the said property can be made available once the agreement is signed with the name of the buyer.
The basic difference between an agreement of sale and deed of sale has been enumerated below.
A Concept deed of sale helps in avoiding ambiguity as it defines the rights, acts, obligations of the parties involved, thereby clearing any confusion among the parties. It also provides legal protection in the form of the rental agreement as there may be a need for a legal document if the value of the assets is on the higher side.
It can be concluded by the above-mentioned facts that the concept deed of sale is an important legal document and one must carefully scrutinise everything pertaining to the deed of sale and must not rush with things because once a legal document has been approved, it shall be taken as a final word if any conflicts arise in future.
Also, Read: What are the Steps for Contractor Agreement.