A sale deed may have come up during your research before settling on a property. It is the most valuable legal document you will possess upon purchasing a home. According to the purchase deed, you may proceed with the registration and mutation of the property. The sale deed or purchase deed is drawn up by legal draftsmen according to the value set by the state’s stamp duty act.
It is not legal to buy or sell property without the buyer and seller signing the sale deed in front of at least two witnesses. The sale deed is the most important document for the sale or purchase of property in India, governed by the Registration Act, 1908.
Sale Deed Parties
A sale deed must begin with the names of the parties involved in the transaction. To make it valid, it must contain the names, ages, and addresses of the parties (buyer and seller). A bona fide intention must be demonstrated by the signing and executing of the deed by both parties.
The Sales Property’s Description
A proper description of the property you intend to buy must be included in the sales deed. For instance, in the case of a 3BHK in Bandra, the sales deed should contain the plot area, identification number, details of construction, exact location and surroundings. In order to determine the exact location of the property, the property schedule must be incorporated into the sale deed.
When you pay a booking amount for your new apartment in Mumbai, you will receive this document. In this agreement, both the seller and the buyer will agree on the conditions and terms of the agreement so that neither party’s rights will be affected. Before the sale deed is signed, a sales agreement is typically drafted.
Considerations under the clause of sale
The sale consideration clause must include the amount agreed between the buyer and seller. The buyer agrees to pay this amount to the seller during the execution of the sale deed. According to the agreement, the sale amount should be clearly stated on the deed.
Payment Modes And Advance Payments
The sale deed should clearly state whether you have paid the builder or seller anything in advance for booking the flat. It is also necessary to include the remaining amount payable in the document.
In the form, you must indicate by what method you intend to pay the amount – by check, cash, or DD – as well as the seller’s consent to accept it.
It is important to mention in the sale deed when the property title will be transferred to the buyer. It is important to give the seller a time limit for transferring the title. Upon transfer of title, all related rights pass to the buyer.
Delivery of possession
After the registration process is complete, the seller must transfer possession of the property to the buyer in the sale deed. Delivery of possession should be stated in the sale deed.
Provisions for indemnity
This is most common when it comes to the purchase of a resale property. According to the clause, the seller is required to clear all statutory charges prior to the execution of the sales deed, such as electricity bills, property taxes, water bills, maintenance charges, and society charges. The seller must repay the home loan and return the papers to the bank if the original buyer took out a loan to purchase the property. It is essential for you to scrutinize the status of encumbrance from the subregistrar or registrar’s office as a conscious buyer.
The default clause
To make sure that the sale deed proceeds without delay, it is ideal that the sale agreement contains a clause stating that, if any default occurs on the part of either party, the defaulting party must pay a penalty to the non-offending party.
The sale deed must be ratified by two witnesses on both sides. Witnesses must provide their full addresses, signatures, and names. The buyer and seller must sign each page.