Whats Is Sale Deed

Oktober 27, 2021 0 By Admin

Whats Is Sale Deed ?

A sale deed is the final step of a property-purchase process. The sale deed is an important legal instrument governed by Registration Act, 1908.

Sale deed is also known as conveyance deed is a document by which the seller transfers his right to the purchaser, who, in turn, acquires absolute ownership of property. This document is executed subsequent to the execution of the sale agreement and after compliance with various terms and conditions detailed in the sale agreement.

 

Sale deed, a legal written instrument 

A sale deed is an instrument in writing that legally transfers property from one person to another. The property buyer is called the transferor and the purchaser is called the transferee. The sale deed confirms the ownership of the property. Property transaction is not legal in India unless the parties involved signing the sale deed in the presence of two witnesses.

 

Major contents of the Sale deed

The sale deed contains very vital information such as details of the parties involved in the transaction, price of the deal, mode of payment, terms of transactions, etc as mentioned below:

  • Details of the parties involved in the transaction

The sale deed describes the full name, address, contact details, age, and profession of the purchaser and seller.

  • Details of the property being transferred

The sale deed mentions plot area, identification number, exact property location, construction details, etc.

  • Encumbrance & indemnity clause

The sale deed includes a declaration from the seller that the property being transferred is free from all sorts of encumbrances, liens, litigations, etc. the seller indemnifies the purchaser from all sorts of pending charges if any.

  • The total Sale consideration

Total sales consideration is also defined in the sale deed. The total details of the transaction should be mentioned in both figures and words.

  • Delivery and possession of the property

The date of possession of the property should also be specifically mentioned.

 

Points to consider before signing the sale deed

  • The title of the property should be clean and free of any mortgage and encumbrances.
  • Verification of the title of the property from the registrar’s office.
  • Check whether all the dues like electricity charges, water charges, etc have been cleared

Registration of the Sale Deed

 

The registration of the sale deed involves:

The property value should be determined based on the circle rate in that area.It is important to assess the circle rate and the actual price paid for the purchase of the property because stamp duty is paid on the higher of the two values.

Consequently, the deed is typed on the stamp paper.

The final step is to register the sale deed in a sub-registrar office in the presence of two witnesses

Whats Is Sale Deed

FAQs

Q. What is the difference between a sale deed and a sale agreement?
Ans. A sale agreement is a commitment by the parties involved that the property will be transferred in the future on certain terms and conditions. While the sale deed is the concluding part of the transaction after that ownership is finally transferred.
Q. What is Sale Deed?
Ans. A Sale Deed is also known as a conveyance deed, is a document by which the seller transfers his right to the purchaser, who, in turn, acquires absolute ownership of property. This document is executed subsequent to the execution of the sale agreement and after compliance with various terms and conditions detailed in the sale agreement.