A sale deed is a legal document used in property transactions as an evidence for the transfer of title, rights, and ownership of a property from a seller to a buyer.
It is an important document that can be used as proof of sale by both buyer and seller.
The purchase or sale of a property is not legally complete until the sale deed is signed which is normally done after both the parties are satisfied and agree on all terms and conditions.
Advantages of a Sale Deed
1. Protection of both parties: protection of legal rights of both buyer and seller along with avoidance of any ambiguity regarding the same.
2. Definition of the area: it is an advantage for the buyer to have all details of the property including square footage on paper to avoid any disputes regarding the same in the future.
3. Makes it legally enforceable: a sale deed concludes the sale on paper and makes it legally enforceable
4. Stability and comfort in the sale process: due to specification of the amount due on sale in the sale deed the process of transfer of property gets less troublesome.
5. Assurance: it assures that the property is not taken for granted due to the presence of a registered and stamped legal document.
What should a Sale Deed include?
1. Description of both parties involved: the full name, complete address, contact details, age, and occupation of both parties.
2. Description of property to be transferred: id number, correct address, dimensions of the property, construction details, if any.
3. Indemnity and encumbrance clause: this clause is a declaration from the seller stating that the property is free from any encumbrance, litigation, charge. Also, this clause indemnifies the buyer of any pending charges in this regard.
4. The seller should settle all pending loans taken with the concerned property as a mortgage, before proceeding with the sale. The buyer has every right to examine the documents before registration.
5. The sale consideration: this is the amount at which the sale is closed. This should also include the advance paid and its receipt. These amounts should be mentioned in words as well as numbers. The parties should also agree upon a mode of payment, date of payment, etc.
6. Delivery and Possession of property: the deed should also mention the date of handover to and possession by the buyer.
Documents required for a Sale Deed-
1. The extract: essential document for registration of property.
2. General power of attorney: essential document to verify the transfer of property on behalf of the owner of the property.
3. Copy of the Building Plan: to ensure that all construction carried out on the property is legal and in accordance with all sets of rules and regulations.
4. No Objection Certificates
5. Allotment Letter
6. Sale Agreement
7. Possession Letter
8. Payment receipts: original receipts to be collected from the developer or copies of receipts to be collected from the seller of such used property.
9. Property Tax Receipts: to be collected from the previous owner to help to verify the legal status of the property.
10. Encumbrance certificate: declaration that no pending cases or mortgages exist with respect to the property.
11. Completion Certificate: proof of the fact that the building is constructed according to approved plans.
12. Occupancy Certificate: insurance of the fact that the property is ready to be occupied and is constructed according to approved plans.
By- Prabhnoor Khurana
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