What is a Sale Deed?
A sale deed is essentially an official document that allows the owner and seller of the real estate to assign the rights to the buyer. Once the seller has drawn the sale deed draught, record the real estate at the nearest sub-registrar office. People frequently inquire whether it is necessary to register a selling document. Yes, it is necessary to register the sale deed. The buyer cannot legally become the actual proprietor of the property before a sale deed is registered.
As per the sale deed meaning, the seller is the vendor, as well as the purchaser, is the vendee. Bikrinama and Bainama paper is the Hindi word for sale deeds. Similarly, the Marathi word for sale deed is Vikri Karara. In some circumstances, the sale deed is also referred to by the term of the title deed. In a legal sense, however, there's a distinction separating a sale deed as well as a title deed. Furthermore, numerous components must be addressed during the drafting of the selling deed. According to the Transfer of Property Act, the sale deed has to contain many provisions in addition to the essentials.
A sale deed specifies everything from the rights and responsibilities of the buyers and sellers to the specifics of the property. Write the draught sale deed first while preparing the sale document. Following that, a few terms might be added or omitted from the draught sale deed to finalize it based on the needs of both the buyer and the seller. When the draught sale deed is finished and approved by the parties, record the sale deed with the buyer's name.
Building plans, allocation letters from builders, current tax invoices, latest utility bills (electricity), the authority of attorney (if relevant), and title paperwork to create a sale deed. In the case of selling property, all previously registered agreements are essential documents when drafting the sale deed draught. The buyer has to pay the applicable stamp duty when the sale deed is registered. Stamp duty rates currently range from 4% to 6% of the property's transaction price. The amount of stamp duty leveled on properties varies by state.
Components of a Sale Deed
1. Details of Both Parties
This clause will give an overview of the parties engaged in the property sale. It includes information about the seller as well as the buyer, including names, residences, contact information, occupation, age, and the date the sale transaction was executed. If one of the parties wants to implement the contract in his or her absence by giving a Power of Attorney (PoA) to an additional individual, the details of the PoA must be included in the 'details of the parties section.
2. Description of the property
A clause in a sale deed must tell the parties in considerable detail regarding the specifics of the real estate being transferred. They involve the size of the plot in square meters, the carpet area in the instance of an apartment, the identification number of the property itself in case an individual is interested in verifying details in official administration records, the details of the building's construction, including the date it was built, the exact location, and the property's surroundings. In addition to this clause, an arrangement detailing this information is appended to the deed. It is also possible to provide a visual illustration of the property.
3. Considerations of the sale
The selling consideration forms one of the most important components of the sale transaction for both the buyer as well as the seller. It is the cost at which the transaction is completed and transmitted. Before being included in the sale deed, this sum has been mutually decided upon by both parties. To avoid confusion, the consideration amount is usually stated in both numbers and numbers.
4. Indemnity Clause
This provision is included in a sale deed to guarantee that the property is free of encumbrances when it is transferred to the purchaser. This means that before the sale, the seller had no liabilities associated with the property. Loans, arrears, charges, fees, water charges, energy costs, and house tax are all examples of encumbrances. The vendor must attest that all such obligations have been removed. This clause also states that the seller has to guarantee that the property in question is free of legal action.
5. Transfer of the Title
'Transfer of title' is a common phrase used in sale deeds. This refers to the ownership transfer. The timing of the transfer of the property title from the seller to the buyer is laid forth in each sale deed's corresponding clause. 'Words of Conveyance' is another name for this. It expresses that the seller wants to give the buyer ownership of the property. This may occur immediately or after a certain amount of time. This clause aims to provide the buyer with complete ownership of the property by transferring all ownership rights from the owner to him or her.
6. Method of Payment
The sale deed must expressly state how the money will be paid for the property acquisition or the mode of payment. The selling deed makes clear the accepted forms of payment, including cash, cheque, and bank transfer.
A few necessary disclosures must also be made by the seller of the real estate to the purchaser in the selling document. These disclosures cover a variety of topics, such as substantial property flaws, disputes that have been declared, correctly executed property conveyances, and the payment of taxes as well as additional fees associated with the property. The sale deed's execution lowers the possibility for both sides because it explicitly outlines all of their rights and responsibilities.
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Difference Between Sale Deed and Sale Agreement
What is the Sale Deed Number?
Following document registration, payment of stamp duty, and registration fees, the Sale Deed Number is generated. The payment slip contains the sale deed number as per the sale deed format. The full selling deed paperwork is also mentioned on the top right of each page. The original sale deed format of the deal number is Document Number; Year; Sub Registrar Office initials.
Sale Deed Documents Required for Property Registration
Here are the main documents required for the registration of the property:
● Title Deed Draft
● Power of Attorney
● Property Tax Receipts
● Sale Agreement
● Encumbrance Certificate
● Allotment Letter from the Housing Board
● Completion Certificate
● Blueprint of both authorized parties
● No-Objection Certificate
● Sharing Agreement signed by the builder as well as the property owner
● Stamp Duty Receipt
● Possession Letter
● Identity proof of all the parties as well as witnesses involved
● Passport-size photographs
● Occupancy Certificate
● Property Papers from the bank
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Must Remember These Things When Executing a Sale Deed
Here are a few key points to keep in mind while putting a selling deed into action:
● A provision transferring the ownership title to the purchaser upon the close of the sale is included in the selling deed.
● All liens and encumbrances are removed from the property's title.
● The encumbrance status should be confirmed by the registrar's office.
● All property-related essentials such as utility bills, or water, electricity, property tax, etc, must be paid.
● There must be no outstanding debts, such as maintenance fees.
● All of the conditions for which the real estate has been sold must be detailed in a sale deed.
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Q. Why is a sale deed required?
As the evidence of the property's ownership, it is a crucial document. It formally notifies the buyer of the seller's documentation of the transfer of ownership of the property. Until the purchase deed is authorized or registered, the buyer, as well as the seller of the sale or purchase of the real estate, is not legally finalized.
Q. How to get a sale deed copy online?
A copy of a selling deed cannot be directly registered online. To register, you must go to the sub-registrar's office. However, collecting the electronic stamp paper and scheduling a registration appointment online will lessen your hassle.
Q. Who keeps the sale deed?
The primary sale agreement may be kept by the buyer as proof of this property's ownership.
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Q. Is it possible to sell the property without the original sale deed?
According to the Transfer of Property Act of 1882, absolute rights are not transferable without there being original documents on which the buyer's name is registered; therefore, it is prohibited to sell a property without an original Sale Deed as well as deed registration.
Q. Is a sale deed necessary for a home loan?
Since the sale deed is the last document to certify your ownership of a property, it is required for home loan approval.
Q. What to do if I have lost my original property documents?
The application should be turned in to the sub-registrar office where the property was first registered. Your application can be approved once the supporting documents have been checked. You will receive an additional copy of the real estate documents within 15 to 20 days.