Overview of Sale Deed

A sale deed is a legal document used to describe the sale of property between two parties. Sale deed registration is the proof of ownership. It helps to transfer rights in the property from the seller to the buyer.

Some rights are transferred to the buyer, as follows:

• Right to use
• Right to sell
• Right to mortgage/lease
• It is essentially a contract where all legal requirements of contract formation must be fulfilled.

Sale deed in India is an important document that reports the proof of buyer and seller. It is the legal document for both the buyer and the seller or the transferee and the transferor. The sale or purchase of the property is not legally completed until a sale deed format is not signed between two parties. Normally, a sale deed is needed to be signed only when both parties are satisfied and comply with the terms and conditions.

Benefits of a Sale Deed Registration

Protect Parties – The sale deed protects the rights of both parties (buyer and seller). A specific and well-drafted sale deed is used to avoid ambiguity and minimize legal risks.

Define Area – For the buyer, a key advantage is the form of paper. It is a well-defined description of the property that is going to be purchased, including the area in square footage with a specified location.

Following are more additional benefits to have a sale agreement deed:

A sale deed concludes or describes the sale into a legal document that is enforced by the law.
A sale deed is used to reduce troubles as due money can be specified in the sale deed document. It makes the selling process more comfortable and stable.
Additionally, it ensures that your property is not for granted, its existence is a stamped and registered legal document.

Main Components of a Sale Deed Document

While creating a sale deed registration draft, many essential components need to be included in the document. Some important things must be a part of the sale deed draft document.

Details of Both Parties – It includes details of both parties, including contact numbers and age that is recorded in the draft of a sale deed.

Property Details – It includes details of the property, such as its complete address, dimensions, area of the property, and details of construction.

Indemnity Clause – This clause is added to the property in order to ensure that sellers free buyers from previous loans, taxes, and charges related to property. Also, sellers pay loans and mortgages before finalizing the property sale.

Payment Details – The rate at which the property will sell should be specified in the document of the sale deed in India. Along with the sale price of the property, the information on the advance payment made by the buyer must be stated in the sale deed clearly. Information on installments and the date of each installment should be mentioned in the sale deed document.

Mode of payment – The mode of payment, i.e, the amount made for property sale, must be recorded in the sale deed explicitly. The standard mode of payment, such as cheque, bank transfer, or cash, is clearly stated in the document of the sale deed.

Possession of Property – The sale deed format will record the date at which the buyer will get property possession.

Witnesses of Property – The property’s testimonium clause includes two witnesses that are mandatory to attend the sale deed. At least one witness should be present from both sides.

Additionally, the property seller must make some mandatory disclosures to the buyer in the document of a sale deed registration. These disclosures include the description of defects in the property if any, declaration of disputes, execution of conveyance of property, clearance of taxes, and charges related to the property, etc. Considering the sale deed includes all rights and obligations of both parties in detail, its implementation minimizes the risk for both parties.

Format of A Sale Deed Form

In general, a sale deed in India must include following details. It involves their full name, complete address, age & occupation, and contact details for each of the sellers and buyers.

• Description of property that is being transferred – ID number, dimensions of the property, correct address, construction details of the building.
• Encumbrance and Indemnity Clause – The sale agreement deed includes a declaration from the side of a seller that property that is being transferred must be free from every litigation, encumbrance, and charge. Also, the seller indemnifies the buyer from any of the pending charges.
• The seller must settle the pending loan taken – On the concerned property as a mortgage, before proceeding with the property sale. The buyer has the right to examine related documents before processing the registration.
• Sale consideration – The price at which the deal is closed. This section mentions the advance amount that is paid. The parties should agree on the mode of payment, dates of payment, etc. The price and details of transactions should be mentioned in both numbers and figures.
• Delivery & Possession of Property- The sale deed format specifically mentions the handover date to and possession by the buyer.

Process for Getting A Proper Sale Deed Registration

• The lawyers must be in contact to understand the requirements in detail.
• The basic information is required from your end in order to begin the process.
• Once the required information is provided and payment is received, the lawyer is allowed to start working on the document.
• Additionally, you get a draft of your legal document within working days.
• Evaluate the document in case of any modifications, you can intimate corrections.

Requirements of a Sale Deed

• The sale deed should specify the name and address of both parties.
• It must have the complete address of the property and a description of the property.
• The consideration of the selling price should be accepted between buyer and seller and must be specified in a sale deed document. It is the amount that the buyer has to pay during the execution process of the sale deed that must be included in the sale deed.
• Additionally, if any advance amount is paid, it should be mentioned in the document of a sale agreement deed.
• The payment mode must be mentioned.
• The sale deed in India should stipulate the time when the title of a property will get transferred to the buyer. All documents related to a property must be handed over to the buyer of a property.
• Ensure the title of a property is available from the deviation.
• A sale deed document is not legally binding until it is enrolled in the office of the sub-registrar.
• The registration charges and stamp duty have to be paid to make the registration done.

Registration of The Original Sale Deed

Both the purchaser and seller have to keep all the sale deed registration documents in the office of the sub-registrar that confirms the sale deed and closure of the deal. The sale deed registration includes:

• The property value has to be determined based on the regional circle rate.
• The circle rates of an area and its actual price paid is related.
• Additionally, a stamp paper of the value calculated has to be consequently purchased.
• Consequently, the sale deed has to be typed and provided in stamp papers.
• The final step needed to make the sale agreement deed registered in order to compare the sub-registrar office to get the registered sale deed. Both parties must be followed by two witnesses.