As per Section 54 of the Transfer of Property Act, 1882, a sale is defined as a transfer of property. The term sale refers to the transfer of ownership for a certain price that has been promised or paid, or part of a price promised or paid. A Sale Deed is a document that completes the transaction.
A Sale Deed transfers ownership rights associated with a property from the seller to the buyer. In order to prove ownership of property after purchasing it, the document is very important.
An agreement for the sale of a property is clearly stated in the Sale Deed, including the price as well as the terms and conditions of the agreement. An agreement for sale is used when the property in the agreement is to be used in the future and there are terms and conditions attached. In order for the sale deed to be completed, the property must be transferred immediately.
In India, what is the meaning of a sale deed?
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A Sale Deed Agreement in India is a legally bindable document that transfers ownership and title of immovable property from one person to another for a price to be paid to the seller. India’s Registration Act, 1908, implements sale deeds. Sale Deeds are valid only if they are signed by both parties, i.e., the seller and buyer. According to the Sale Deed, both parties must comply with the terms and conditions.
A Sale Deed must be registered within four months from the date of execution according to the Registration Act, 1908. A Sale Deed will be registered by the Sub Registrar of the jurisdiction in which the property is located.
Benefits of Sale Deed Registration in India
Registration of a sale deed in India has the following benefits:
A Sale Deed Registration allows authorities to keep an eye on any fraudulent property transactions.
Taxation made easier
Taxation becomes much easier for the authorities when the total cost of transferring a property can be precisely determined.
Title to the property will be established properly in the name of the owner in the Sale Deed.
Sale deeds are very valuable as evidence. Before any court of law in India, the registration document will serve as proof of ownership.
In India, what are the main components of a sale deed?
In India, a Sale Deed consists of the following:
- Parties’ names and details;
- Details of the buyer’s and seller’s Pan numbers;
- The representations and warranties;
- Entirely free of encumbrances;
- Partial or absolute rights;
- Stamp duty payment;
- Details of the registration fee;
- Paying person’s name;
- Clause of indemnity;
- Resolution of disputes;
- Law governing;
- Payment mode;
- Property description and schedule;
- Two witnesses’ details;
- Parties’ and witnesses’ signatures;
- Parties’ photographs;
- Liability for taxes.
In India, you need the following documents to register a sale deed
Registration of a sale deed in India requires the following documents:
- Detailed drafts of the sale deed, title deed, and conveyance deed;
- Extracts from Rights and Tenancy Corps (RTC) records;
- A Joint Development Agreement;
- Power of Attorney for General Purposes;
- Extracts from the Katha Certificate;
- Extracts from the Mutation Register;
- Allotment letter from the builders or cooperative societies or housing boards or BDAs;
- If there is a loan on the property, whether it is current or past, the original document with the bank;
The procedure for registering a sale deed in India
In order to register a sale deed in India, the following steps must be taken:
- Estimate the value of the property based on the circle rate. The circle rate is the minimum value set by the state revenue department or the local development authority at which a property can be sold.
- A comparison will be made between the circle rate calculated for the particular area and the price paid for the property. When calculating the stamp duty, the higher of the two values should be taken into account. It is then necessary for the parties to purchase a non-judicial stamp paper of the estimated cost.
- On the stamp papers, the Sale Deed is then prepared and typed.
- To register the Sale Deed, the parties should go to the office of the Sub-Registrar.
- Along with the parties, two witnesses are required.