A sale deed is a legal document required during a property transaction as evidence of sale and transfer of ownership of a property from a seller to the buyer. It is also called a conveyance deed. It can also be used to prove the ownership of immovable property.
The sale deed is drafted on a non-judicial stamp paper of a predetermined value set by the respective state government. The payment for stamp duty and registration charges needs to be done by the buyer. It is important that all property dues like loans, taxes, bills are paid before the sale deed is signed off. Both parties need to agree to the terms and conditions before the official transfer of the property.
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How do I write a sale deed?
Details to be mentioned in a sale deed
- Basic details like name, age, residential address of both the parties
- Description of the property- date of construction, total rooms, area of the coverage
- Sale Agreement- stating that the seller agrees to transfer the ownership and legal rights of the property to the buyer and also mentions the sale price of the property, payment method, advance payment etc
- Sale considerations-mentions the time required for possession and handover of property with original papers. the details of the transactions specified in figures and numbers along with receipts of transactions.
- Indemnity clause by the seller promising payment to the buyer in case of monetary losses due to ownership disputes.
- Default clause where the defaulting party pays a penalty to the non-defaulting party to keep the terms and conditions of the sale deed intact.
Steps involved in drafting a sale deed
- Understanding the procedure, analysing your requirement and hiring a lawyer
- Based on the requirement the lawyer will formulate the draft of the sale deed for evaluation
- After proper evaluation and approval of the draft, it needs to be printed on a non-judicial stamp paper
- A meeting with the sub registrars under whose jurisdiction the property is located to submit and register the documents.
- For registration at the sub-registrar office, two witnesses are required to sign the documents and the registration fees and stamp duty needs to be paid for the issuance of the registered sale deed.
- Draft of Sale Deed/title deed/ conveyance deed
- Power of Attorney
- Sanctioned building plan by statutory authority
- Allotment letter and NOC from the housing board/NOC from apartment association
- Latest paid tax receipts, electricity bills, etc
- Property-related documents like loans, mortgages or contracts and a copy of all previously registered agreements.
- Title documents of property owners
- Sale agreement
How to get a Certified Copy of Sale Deed?
A sale deed is an important document for the sale or purchase of a fixed property. In case it gets lost, stolen or damaged you can get a true and certified copy of the sale deed from the registrar’s or Sub-registrar’s office. In case the papers are stolen or lost first the owner must file an FIR in the police station
To apply for a certified copy of the sale deed visit the Sub-registrar’s office under whose jurisdiction the property is registered and submit the application along with the essential documents showing ownership and affidavit. The charges to be paid vary from state to state. After verification, the Sub-Registrar office will issue a copy of the sale deed within a few days.
Difference between Sale Agreement and Sale Deed
|Only a promise of a prospective transfer of property ownership
|The actual transfer of ownership of property
|States the terms and conditions of the sale deed to be followed by both parties.
|Mentions basic details regarding both the buyer and seller (name, address)
|Gives the right to purchase to the buyer. on fulfilment of some conditions. it precedes the sale deed and is signed by both the seller and buyer for the execution of the deed.
|It gives the rights of the property to the buyer. The buyer pays the stamp duty and registration fee.
What are the advantages of having a Sale Deed?
- Acts as evidence of transfer of property in case of disputes
- contains information regarding the rights and obligations of both the parties
- A well-drafted deed will help avoid legal risks and ambiguity
- Defines the area of the property being purchased
- Makes the process of transfer easier and more stable
Importance of a Sale Agreement
A sale agreement is an important document because for multiple reasons for example it acts as legal proof for the transfer of property. It would also assist in applying for a home loan. The bank might not accept the application without a sale agreement. It also ensures that all terms and conditions mentioned in the sale deed are followed by both parties. Flouting by any one party will be dragged to the court on the wish of the other party.