In simple words, a sale deed is a legal document that includes all the information regarding the transfer of title rights and ownership of property from the seller to the buyer. It is crucial to provide legal evidence that the property belongs to the purchaser.
The purchase of a home is not legally binding until the parties have both read the specifics and are in agreement with all clauses and terms. When both the buyer and seller are satisfied, they must sign a copy and keep the document in their possession. This serves as evidence of the purchase in the future.
A lawyer should draft the Sale Deed after considering all the provisions of The Transfer of Property Act. This is necessary to reduce the potential risks associated with the purchase of property as well as the parties.
What are the advantages of a sale deed?
- It protects all parties involved – An adequately drafted sale deed will protect the rights of the buyer and seller. It minimizes legal risk and minimizes any uncertainty or confusion.
- Defines the property that is being bought – It also defines the property that is being bought in terms that are completely concrete. This includes things like area and square footage. It provides a detailed description of the property that is particularly helpful for buyers.
- Legally Binding – Furthermore, it is enforceable under the law and therefore is legally binding. The parties are more secure as the amount due to either party is clearly stated, which helps avoid any issues throughout the process. It also assures the seller that their property is not considered to be taken for granted.
What is required to be in the deed of sale?
The papers contain a few essential details that need to appear in the original copy. Let’s take a look at the included in the sale deed parts.
1.The details of both the parties
Every sale deed must contain the full descriptions of the parties in the transaction, and it should include all their names, full addresses, contact information, age, and job title. All of these details must be checked for accuracy to ensure there isn’t any mistake in any of the information.
2.A complete description of the property being transferred
It must include the ID numbers of the house that is being transferred. In addition, the proper address size, square footage and measurements of the property, as well as the location and details of construction
3.Indemnity and the encumbrance clause
This clause is basically an affirmation from the seller that the property that is being sold does not have any litigation, encumbrance or other charges. If the seller has a pending loan that is taken out by the property as a mortgage, the buyer who purchased the home is shielded from any liability. A buyer is entirely within their right to scrutinize the property before deciding to sign.
The term “sale consideration” simply refers to the amount at which buyers and sellers have reached an agreement in order to sell the house. Both parties must accept the dates of payment, payment method, and other specifics prior to the date of payment. The details should include all the details of any transaction in both numbers and figures. Parties might include any advance payments made within this area if there were one. Additionally, they should include the receipts for the transaction.
5.Possession and delivery of the property
The property documents should specify the date of handover of the property from sellers to buyers. This is the date at which the buyer is able to take possession of the property, and from the date of the handover, the property is legally owned by him.
How to draft a sale deed
It is crucial to know the sale deed procedure. There are several stages involved in the process of drafting:
- Locating the right lawyer who can meet your needs
They will be in touch to determine the requirements of a sale deed.
- The process of drafting.
After the lawyer has grasped the essential requirement for a sale deed, they commence the procedure of writing. The lawyer will send the draft to you within three days for your review and approval.
- Printing on non-judicial stamp paper
The print will appear on a non-judicial stamp once it is accepted.
- Appointment with a sub-registrar
The lawyer then makes the appointment to meet with a sub-registrar within the property’s region.
The deed is registered in the presence of two witnesses and an attorney, and the deed is registered when you sign the deed and pay the registration fee.
- Registered sale deeds issued
The Sub-Registrars’ office will register the sold deeds.
The documents required to complete the sale deed
- The extract
- General powers of attorney
- Plan for building
- Allotment letter
- Sale contract
- Possession letter
- Receipt for payment
- Tax receipts for property
- Certificate of encumbrance
- Completion certificate
- Occupancy certificates
Sale agreement vs sale deed
A sale agreement is a prelude to the sale deed, and it is executed and signed on non-judicial paper. It is the proof of purchase and legally transfers the rights of the property to the buyer.
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What’s the best way to proceed when we’ve lost the sales deed for the property we own? How can I obtain that original sales deed?
When the sale document that was initially issued has been lost, you will not be able to obtain that original sales deed until you locate the lost sale deed.
You can, however, get an official duplicate of your sale deed at the sub-registrar offices (SRO). The certified copy is not the original sale deed but a substitute for that original deed.
A certified copy of the sale warrant from SRO is a valid source for mortgages, subject to sending the documents listed below to the bank.
- A certified copy of the sale deed attested by SRO
- Proof of ownership (Typically Aadhaar or passport, ID proof name must match the names on the authentic copy of the sale deed)
- Copy of FIR
- Published newspaper clip stating that you have lost the original sale deed
Achieving a certified copy through SRO is simple and straightforward. It is recommended that you have one of the following information to file a certified copy request.
- The registration number of the property
- Certificate of encumbrance
It is possible to track the sale deed even when you don’t possess a property registration number or encumbrance document by the name of the seller or buyer and the property’s address.
Frequently Asked Questions (FAQs)
What is a sale deed?
A sale deed is the primary legal document showing the sale and transfer of the property’s ownership in favour of the buyer and away from the seller. Additionally, it serves as the principal document used in future sales by the buyer, as it establishes the buyer’s proof of possession of the property.
What happens if I don’t register the property?
Since the unregistered property has no legal authority, the owner, even though having acquired control of their property, can possibly lose the house. Furthermore, an unregistered sale deed cannot be used as evidence before a legal court.
What is the best time to register the sale deed once it has been made?
The deed has to be recorded within four months after it was made.
How do I obtain a certified duplicate of my sale contract if I am a seller?
Sale deeds are public records, and the sale deeds that were registered following 2004 are electronically stored on the government’s servers for the use of the public.
I’ve lost my first sale deed. Is it possible to get a home loan through the bank by providing Xerox copies of the sale deed?
No, It is not possible to obtain a home loan with a photocopy of the sale deed or with a photocopy of other documents supporting it like an encumbrance certification, Khata certificate, and tax-paid receipt. All papers must be original.
But, if you have misplaced or lost your original sales deed. You can get an official copy of the sales deeds from the sub-register office.