Basic Overview of the Concept of Sa...
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According to Section 54 of the Transfer of Property (TP) Act, 1882, a sale is defined as the transfer of ownership in exchange for a price paid or promised, part-paid or part- promised. A sales deed is a document that renders the sale complete. A seller transfers the rights of ownership of the property to the buyer through the sale deed. It is a crucial document as it proves the purchaser has become the owner of a property after buying it. A sales Deed lists the details related to price and terms and conditions on which the two parties reached an agreement for the sale of the property. If a property is meant for the future and there are terms and conditions attached, then it is called an agreement for sale. A sale deed is completed when there is an immediate transfer of property.
A sale deed also known as final deed or conveyance deed is a legal document used in property
transactions as a shred of primary evidence for sale and transfer of ownership of property in favour of the buyer from the seller. It is a legal instrument in writing which transfers the ownership rights of a property from one person to another in exchange for a price paid or some consideration. Sale Deed is done for the sale or purchase of the immovable property. The person transferring the property is known as the transferor or seller, while the person paying an amount to get the property is called the transferee or buyer. It also acts as proof that the buyer is the complete owner of the said property. A sale deed must be registered under The Registration Act, 1908 within four months from the date of execution.
A sale deed consists of all the relevant information pertaining to the sale and is the most valid and crucial document in the purchase of the immovable property. The deed must be drafted on a non- judicial stamp paper of value as set by the State Government. Each state in India has a predetermined value of stamp paper for the drafting of sale deeds.
While drafting a sale deed the document must mention the following details:
The following steps are undertaken to register a sale deed:
The documents required in a sale deed Registration are as follows:
|S.No||List of Documents|
|1||Draft of Sale Deed or Title deed or Conveyance Deed|
|2||Records of Rights and Tenancy Corps(RTC) extracts|
|3||Katha Certificate and Extracts|
|4||Mutation Register Extracts|
|5||Joint Development Agreement|
|6||General Power of Attorney|
|7||Building plan sanctioned by the Statutory Authority.|
|8||NOC from Electricity Department /Pollution Control Board/ Water Works/ Air Port Authority|
|9||Supplementary agreement / Ratification Deed (if any)|
| 10||Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.|
|11||In case of any loan on the property (Current or past) -Original Property Documents with Bank|
|12||Sale agreement with the Seller|
|13||All title documents of the landowner.|
|14||In case of the resale property a copy of all the previous registered agreements.|
|15||In case of resale of property No Objection Certificate or NOC from the Apartment Association.|
Monetary compensation paid from one party to another in case of any future losses is indemnity. The indemnity clause in a sale deed administers that all the information provided by the seller to the buyer is true and their ownership over the property is unencumbered. In this clause the seller promises to pay the buyer any damages in case of any dispute with regard to the ownership, resulting in monetary losses to the buyer. This clause is generally inserted during the purchase of a plot as it involves higher risk.
|Agreement of Sale||Sale Deed|
|1.||An agreement of sale implies future transfer.||Through sale, deed property is transferred immediately.|
|2.||Risks remain with the seller.||Risks in the sale are transferred immediately.|
|3.||Agreement of sale is an executor’s contract.||It is an executed contract.|
|4.||Any kind of breach of terms and conditions of an agreement of sale will result only in the suit for damages.||In case of breach of sale will result in a suit for the price as well as damages.|
|5.||Agreement of sale differs from state to state.||It is a mandatorily registered instrument.|
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The sale deed is enforced subsequent to the execution of the sale agreement and after complying with all the terms and conditions mentioned in the sale agreement as agreed upon by the buyer and the seller. The purchaser must get a title search done or obtain an Encumbrance Certificate to check and verify the title of documents of the seller before getting the sale deed registered. It is not suggested to rush into things when it comes to signing a deed. Scrutinize everything in detail as once the legal document is signed, there is no alternative but to accept the words in the document as the final verdict in case of any conflicts arising in the property.
Also, Read: All about Relinquishment Deed.