To help you better understand it, a sale deed, also known as a conveyance deed, is one that is written during the sale. It’s a document that concludes the sale. The seller gives the buyer the rights to own the property in question in accordance with the requirements of a sale deed. The buyer in the deal receives full ownership rights once the document is written and signed.
Additionally, before the sale deed can be formatted, all pending obstacles, such as water and electricity bills, property taxes, and so forth, must be paid in full. As a result, the sale deed typically contains all pertinent information regarding the property being sold.
Because the document is so important, it should be written by a highly skilled person, not someone who knows little about what it means. A sale deed must be drafted in this manner for it to be legally binding and the transfer of properties to go smoothly.
Why should an expert format a sale deed?
In the past, skilled draftsmen used to complete a sale deed by utilizing their legal knowledge and education to create unique documents. Since the copy-paste option was obviously unavailable at the time, draftsmen and lawyers used to treat each deed individually and draft it in accordance with the circumstances.
As a result, if you find older handwritten or typewritten documents, you can be sure that they are legally binding because they are clear and have consequences.
This skillful execution is now mostly lost, as poor templates and simply changing the seller and buyer’s names are used to churn out sale deeds.
However, what many of us do not realize is that what may or may not be “binding” and “compulsory” may not be so for the other person. As a result, before signing the sale deed or even drafting it for approval, one must carefully study it and examine it with the assistance of a lawyer or any expert in sale deeds.
The term “Conveyance” refers to the transfer of property between two living individuals, or “Inter-vivos.” The sale deed is the conveyance deed. Thus, the “Transfer of Property Act, 1882” and the “Registration Act, 1908” are used to convey a deed for sale, and any prepared deed should follow the Act’s rules.
The conveyance document details the settlements that must be paid by the buyer to the seller and what has been agreed upon by both properties regarding the immovable property in question. A person who signs such a deed is legally obligated to follow the terms of the contract and cannot change their mind at any time.
Therefore, it is essential for all parties involved in the deed to conduct a thorough review of the document and to entrust it to an experienced legal professional to ensure that nothing is missing or not agreed upon. There are a number of legal terms that are so complex that only a legal expert or someone with the appropriate credentials would be able to interpret them accurately and point out any errors.
Elements of a Sale Deed
A sale deed is the most important and valid document in any immovable property sale because it contains all relevant information about the sale.
The Sale Deed must be written on state-approved non-judicial stamp paper of a certain value. For the purpose of drafting sale deeds, stamp paper has a predetermined value for each state.
Any remaining balance for legalizing the deed can be paid through Challan, stamping, or any other means required by the state government, with the exception of the stamp papers required to draft the deed.
At the time of drafting, the following information ought to be included in the sale deed:
What kind of deed must be prepared? The property can be leased, financed, or sold.
The addresses and names of the parties who signed: The parties’ full names, addresses, and other information, such as their ages and residence addresses, must be listed at the beginning of the document. A sale deed is not considered legally binding until it includes the names of both parties, either as seller and buyer or lessee and lessor.
Description of the property: If an immovable property is up for sale, it must be described, including its address, number of rooms, etc., plot area, construction area, any additions to it, number of balconies, and any other pertinent information.
Agreement to sell: This is a document in which both parties agree to “sell” and “buy” as well as provide a comprehensive explanation of what compensation must be paid and when any advance will be paid, as agreed upon and signed by both parties. The sale deed itself is followed by an agreement of sale, which is a legally binding document. In order to avoid future disagreements, the date and method of payment must be specified.
Delivery and title transfer: The property’s title is transferred to the buyer irrevocably when both parties sign the sale deed, one page at a time, after the buyer has paid the compensation in full. The buyer will acquire all legal rights to the property.
Getting the document registered: The Registration Act of 1908 governs the registration of immovable property. In order to sign the sale deed and close the transaction, both parties—the buyer and the seller—must be present in person at the local sub-registrar’s office with all relevant documents—or their representatives or authorized agents.
Registration Documentation: The office will provide a certified copy of the registered property with the buyer’s name and proof of registration for future reference.
Before signing, an expert must thoroughly examine and verify each and every detail to avoid legal complications.