Draft of Sale Deed
A sale deed acts as the main legal document for evidencing sale and transfer of ownership of property in favor of the buyer, from the seller. Further, it also acts as the main document for further sale by the buyer as it establishes his proof of ownership of the property.
The sale deed is executed subsequent to the execution of the sale agreement, and after compliance of various terms and conditions detailed in the sale agreement as agreed upon between the buyer and the seller.
The sale deed is the main document by which a seller transfers his right on the property to the purchaser, who then acquires absolute ownership of the property. It is also referred to as the conveyance deed.
The buyer should ensure the title of the seller before the execution of the sale deed. It should be checked whether there is any charge or encumbrance on the property and whether the purchaser is purchasing the property subject to such encumbrance. If not, then the seller needs to repay the loan and get the property papers cleared of the encumbrances. The purchaser should verify the encumbrance status from the registrar's office.
Further, subject to the agreement between the parties, all statutory payments like cess, property tax, water charges, electricity charges, society charges, maintenance charges etc should be paid by the .. In case of mortgages, the mortgagee may take possession of the sale deed as a security for the repayment of the loan. Initially, a draft sale deed is prepared and approved by both the seller as well as the purchaser. The draft sale deed tends to set down the terms and conditions of sale of the property. The draft sale deed contains details of the parties, details of property in question, sale consideration agreed upon, the advance amount paid, mode of payments, time limits for payment of consideration, time for handing over the original documents of the property, time for handing over the possession of the property, indemnity provisions for the parties etc. The draft sale deed is prepared on non-judicial stamp paper of requisite value as prescribed by the Stamp Act of the State concerned. The purchaser is liable to pay the Stamp duty in accordance with the applicable stamp rules.
On completion of all formalities, a sale deed is prepared. This is the main document for transfer of ownership of property. The deed is executed by all the parties concerned. All pages of the deed are to be signed. The deed should be witnessed by at least two witnesses giving their full names, signatures and addresses. The sale deed of immovable property needs compulsory registration at the jurisdictional sub registrar office. All the parties concerned need to be present at the time of registration. All documents should be presented in original. In case the purchaser cannot be present personally before the sub-registrar, he can give a Power of Attorney to a representative to sign and present the documents on his behalf. The photos of purchaser, thumb prints and signatures are entered on the sale deed.
The documents should be presented for registration within four months from the date of execution. If it is not done within four months, a grace period of another four months is allowed on payment of penalty. A maximum penalty of 10 times the registration charges may be levied by the registrar. The liability to pay the stamp duty as well as the registration charges lies with the purchaser of the property.
The Essential Features of a Sale Deed-
- The person making the sale is called seller. Seller has to be competent person to execute a Sale;
- Sale has to be done against the consideration. Sale cannot be executed without consideration. Consideration might not be adequate in this case;
- Registration of sale of an immovable property is compulsory if the valuation of such property is Rs. 100/- or more as per the rules of Registration Act,1908;
- Sale is irrevocable;
- Seller sells the immovable property to the person who is known as buyer/ purchaser.
- The sale deed can be executed by the seller only after he settles/ repaid the loan which he has taken for buying such property;
- The draft sale deed contains the total amount given against the property (whether paid/ partly paid/ advance should be written in details) the date of such payment, the mode of such payment, the deadline under which payment has to be given and the details of all the transactions to prove the full payment. This deed must have the protection provisions for the buyer and the seller.
- One of the most crucial point that a sale deed requires the seller to certify that the property under process of sale is free from all the encumbrances and is without any lien;
- The deed must contain the precise date of transferring the property & the date of the possession to be given to the buyer;
How to get your Sale Deed drafted and Registered through DiLSEWiLL-
- Please do connect to our Customer Care Executive at 9830648068/8017053224. You may also mail your queries to [email protected]. Live chat is functional on our website from 10:30 am to 7:00 pm on weekdays.
- A quotation shall be emailed to you after taking all necessary information from your end
- After approval of the quotation, the agreed charges will need to be deposited by you.
- The procedure for drafting the Gift deed will then be initiated.
