What is a Property Sale Deed?
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Property sale deeds are legal documents that transfer ownership rights from a seller (the transferor) to a buyer (the transferee). In order for the sale and purchase of a property to be legally completed, both parties must sign a Sale Deed. Usually, a sale document such as a property sale deed is not signed until both parties have agreed to the terms that have been outlined.
According to section 54 of the Transfer of Property Act of 1882, all information pertaining to a sale deed, the process of transferring property, and the elements that make up a valid contract are specified. By definition of the Act, a “sale” is a “Transfer of Ownership” that involves a price or a fee. In such a case, the fee may be paid instantly or promised to be paid in part in the future.
Basic Rights in a Property Sale Deed
The three fundamental rights are outlined in a Sale deed document. They are as follows:
- Possessing and enjoying property is a right
- Title rights
- Alienation right.
After the seller transfers ownership rights to the buyer in a contract of sale of the property, the seller has no further privileges. For a sale to be valid, the seller must transfer all rights to the buyer. Motive and purpose are equally important considerations in a transaction.
As specified in Section 55 of the Act, both parties have obligations, duties, and rights when an immovable property is transferred. Among its main goals are to maintain fair deals, prohibit fraudulent conduct, and maintain the property in constant use.
Only in cases where there is no contract to the contrary is Section 55 of the Act applicable. In other words, Section 55 does not apply as long as the contract of sale specifies all the rights, obligations, and responsibilities of both the buyer and seller.
Although Section 54 of the Transfer of Property Act of 1882 specifically mentions the process of selling immovable property, simply reading it is not sufficient to understand it. To understand and investigate the implications of Section 55 of the Transfer of Property Act of 1882, you also need to read Section 54 of the Act alongside these provisions.
Features of a Property Sale Deed
The following features are included in a property sale deed document:
1) A property sale is subject to all the provisions of section 10 of the Indian Contract Act of 1872. For instance, the buyer must give his or her consent before the property is sold.
2) In order for a sale deed to be valid, at least two eyewitnesses must be present from both parties to the transaction. As a result, both parties’ interests are protected in case of future disputes.
3) Property sale deeds are legal documents that bind both buyers and sellers.
4) An immovable property deed is an important document for proving ownership rights.
5) To ensure the title clearance through the deed, the legal professionals usually conduct a search and provide the requisite title report.
6) A deed includes important information such as the property description, the parties involved in the transaction, and the purchase price.
7) The sales deed should state not only that the seller has the right to sell the property, but also that there are no outstanding liens or encumbrances on it.
8) A provision in the contract stipulates that the party that defaults must pay a penalty to the other party that is not responsible for the defaulting party’s actions.
9) The deed must contain any covenants or restrictions applicable to the property.
10) Prior to actually executing the sale deed document, there must be an agreement which protects both parties’ rights.
Property Sale Deed Rights of the Buyer
Buyers are entitled to the following rights under a property sale deed:
1) All liens and encumbrances must be transferred to the buyer
2) Inspections must be completed before the closing of the transfer by the buyer
3) The buyer can withdraw from the transaction if the seller fails to correct substantial flaws in the property
4) The buyer is entitled to take possession of the property and obtain keys.
Property Sale Deed Rights of the Buyer
In accordance with the property sale deed, the buyer has the following rights:
1) Right of consideration
The seller is entitled to the entire compensation specified in the contract. The buyer must comply with any time restrictions stipulated in the contract. As a result, the buyer would have breached the contract of sale.
2) Profits and rents rights
Rent and profit that are derived from the property’s ownership belong to the seller. All money earned from the property is the owner’s until ownership rights are transferred.
Conclusion
All parties must sign a property sale deed in order to finalize the sale transaction, which is one of the most vital and valuable legal documents.
In addition to transferring ownership rights, it serves as an official record of the current transaction. However, the sale deed has the purpose of transferring the legal ownership of a property from one person to another. We can guide you through the entire detailed process of the property sale deed if you have more questions regarding the sale deed for property-related matters at the VakilSearch website.
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