What does Sales Deed mean?
It’s an act by which the right on the property is transferred by the seller to the other person, who acquires the property’s ownership. Before executing the Sale Deed, seller’s title is required to be ensured by the buyer and hence it is regulated by the Registration Act and is an important document for both the buyer or the transferor and the vendor or transferor.
What are the benefits of Sales Deed?
Avoids ambiguity: Parties ' acts, rights and obligations are clearly defined by the Sale Deed due to which ambiguity between the contracting parties gets reduced.
Legally Protected: A legal document is always needed when the value of the asset concerned is high. It therefore serves as a legal protection in the context of a rental contract.
What are the procedures?
- A well-efficient solicitor from our department will email you to clarify the entire process and appreciate the need for a Selling Deed.
- After clearing the objective, the solicitor shall prepare a sample Sale Deed duly.
- You will get the draft Sale Deed for review.
- It takes approx 3-4 working days.
What is the requirement of the Sales Deed?
A Sales Deed is a legally binding document that serves as proof against the transfer of ownership of the property from the person selling it to the purchaser on behalf of the buyer. The same document will also serve as the primary document where the buyer wants to sale the same property in future, as this is a confirmation of his possession of the corresponding assets.
What are the procedures to execute a Sale Deed Agreement?
The Sale Deed or the act itself is eventually executed under an agreement called Sale Deed Agreement. This is achieved through accordance with numerous specific terms and agreements negotiated between both the parties, i.e. the buyer and the seller.
Passing on the right on the property by the seller to the person who bought it is evidenced by such document and also known as conveyance deed.
What are the points to consider while drafting the Sale Deed?
The property must not be subject to any burden / encumbrances
Until performing the Sale Deed paper, the purchaser must verify the seller's title regarding the property. It should be tested whether the property included in the contract has any obligation or responsibility to be precise and whether the buyer allows this transaction in relation to such burden. If not, the seller must pay back the loan in order to clear the property papers of any obligation. From the registrar's office; the buyer can cross check if there is any burden over the property.
All transactions must be made before the owner or seller releases the property.
Dues such as cess and property tax, electricity bills and other improvements such as business service charges and water bills are required to be paid by the seller before the sale is performed.
Mortgage on property and mortgage activity during sales.
In the event that the property is covered by a mortgage, the mortgagee shall take possession of the Sale Deed Agreement as security with respect to the repayment of the loan.
What things to consider while making of the Sale Deed Document
The Sale Deed document is originally prepared as a draft that will be signed and accepted by both parties to proceed. A draft Sale Deed document will include descriptions of the property involved which are mentioned below:-
- Parties’ details involved in the contract
- Property’s details
- Agreed Sales consideration.
- Advance payment made
- Mode of payment
- In order to make payments, time limits or time frame consideration needs to be mentioned.
- In case where the original document is required to be handed over etc, time limit needs to be mentioned.
What legal formalities are required to be complied with in case of Sale Deed?
Such Sale Deed is written and executed on a non judicial stamp paper by “stamp act”. Such stamp duty is required to be paid by the buyer of the property in accordance with the rules of the stamp. The final major Sales Deed document is prepared after all these formalities have been completed which will pass a seller's rights to the property buyer. A few legal formalities follow:-
- There should be signature on all the pages of Sale Deed
- There is a requirement of two witnesses providing their full names and ids and signatures in order to witness the Sale Deed.
- Such property is required to be registered under the judiciary sub registrar’s office.
- During the time of registration, all the involved and concerned parties are required to be present.
- Original form of the documents is required to be presented.
- Documents must be supported by the identity of the buyer such as photos, signatures, and thumb impressions to authenticate such document.
- From the execution date, the original document must be registered otherwise penalty of ten times the charges of original registration charges shall be paid.
Buyer is required to pay the stamp duty, as well as registration charges.