A sale deed is an official document that proves that the seller has transferred the absolute title of the property to the buyer. The rights and interest in real estate are acquired through this document. The deed must be executed following the clear and complete fulfilment of all contractual terms of the sale contract. Additionally, it is required under the Registration Act, 1908, to register a sale document at the registrar's office.
A sale deed typically contains the following information:
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Details about the buyer and seller (name, age, date of birth and addresses)
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Description of the property (total area, information about construction, exact address and the surrounding area)
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Transfer of titles
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The sale consideration clause
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The agreement of sale as well as the price information
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The transfer of the rights, interest, and the claim to an asset to the buyer
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The period when the property title is transferred onto the prospective buyer.
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The exact date of delivery of possession.
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A clause that says that the prior owner has no authority over the privileges, facilities and easements that the property has.
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Compensation to the buyer for damages resulting from the carelessness of the seller, or the heirs of the asset
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The power of the vendor to offer the house for sale.
Importantness Of Sale Deed
A sale deed can be described as the most crucial document that is required in a home deal. Like the previous paragraph, it functions as a legal instrument to facilitate ownership transfers from the owner to the buyer of the property. By Section 54 in the Transfer of Property Act 1882, the term "sale deed" refers to the transfer of ownership over an immovable asset and defines it as the transfer of ownership of an investment in exchange for a sum either promised or paid for or a part promise and payment. by Section 17 under the Registration Act 1908, it is required to record the sale deed of every immovable property with a value of greater than 100 rupees. Registering the deed in the office of the sub-registrar is also obligatory.
The reason for executing a sale Deed
The primary reason for executing an agreement to sell is to guard the executors against being cheated as well as to protect both participants from fraud, since it includes the names and information about each of the parties as well as the property details like the Donor as well as the Donee information about the property, such as its areas, built area etc.
Essential Points to Consider When Making A Sale Deed
The process of drafting a sale deed is an exact process. To ensure that the deal is sealed to benefit you personally, it is crucial to create a professional sale deed.
One must keep these aspects in mind when writing the sale deed:
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Be Original: It's essential to ensure that the document is as original as possible and not to use the standard copy-paste techniques. If you want a sale deed to be authentic, you need to obtain it from an experienced professional who's informed of the technicalities and terms involved. To avoid the hassle, executors of sale deeds prefer to go to DTP centres close to Sub-registrar offices. They can have the sale deed written by altering the names and information of existing sale deeds. Although it may sound easy, it's a risky practice since not every situation is the same and the law changes constantly. Therefore, getting your sale deed through an expert is recommended instead of doing it yourself or choosing a quick method.
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Introduce the Document and the Parties Correctly: The sale deed is valid and effective only if it correctly includes the names of its executors, property details and title. To a layperson, it is true that a "Sale Deed" is not any different from a "Deed of Sale", but legally, they differ from one another. The specifics of the parties, like full name, address, address, age, job and so on. It must be stated in simple phrases and with specificity. It is also essential to check the age of the executors since, as per the Act, it is against the law to enter into any contract with minors. In the case of children, an authority issued by a senior is not valid.
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Define What Property Is Being Sold: Apart from providing the name and contact information about the executors of the sale, It is essential to list every aspect of the property in an image as it is the most critical aspect of any sales deed. Every property element needs to be included on the sales deed beginning with the size of the house, the survey number, its address, and construction details, including the number. Of rooms, roof borewell, parking spaces, boundary details and so on. Other than the specifics of the property shown in the picture, the perfect sale deed should include the date and time when the seller came into possession. For example - vide a sale deed dated xx-xx-xxxx.
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Clear Titles: A sale document must be clear and precise titles. The ownership should be unconditional and not absolute, and in the event of a joint-ownership home, it's essential to have all sellers present at the time of registration in the deed of sale. For an unambiguous sale deed to be valid, it is necessary to state all the facts about the property. It should also not be subject to being connected by any government agency and should be free of all liabilities, encumbrances and liens.
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Attach it to an Agreement to Sell. The sale deed must be written in such a manner that it gives an appropriate reference to the formal agreement to sell that was drafted by the parties in which the seller has agreed to sell while the buyer had decided to purchase.
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Payment Details: The details of the sale deed should have clearly stated the exact value of the property as well as the applicable taxes. Any advance payments made while negotiating the agreement to sell must also be included on the sales deed. The details of the payment method should also be noted, and if the payment is made by check, details of the cheques, such as the number of cheques, must be stated in clear terms.
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Transfer of Title to Buyer: The sale deed is a document that transfers title to and the ownership rights of the property from one person to the next and later alters all papers and documents pertaining to the property.
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Indemnity Clause: If you are a buyer, it is for your benefit when you have a specific indemnity clause that is included in the sale document because it's the indemnity clause that lets you enjoy the rights you have about the property.
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Witness: As stated above, the sale deed is not worth anything without witnesses, and therefore it should include the signatures and details of witnesses.
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Delivery Information: A perfectly and properly drafted sales deed should contain all of the details regarding the transfer of possession, i.e. the method by which it will be transferred must be included within the deed of sale. Including all the information beforehand helps avoid any confusion later on.
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