What are the components of a sale deed? – A sale deed can be among the most important documents needed when transferring property ownership. Similar to other deed documents, such as exchange deed, mortgage deed, lease deed and gift deed, a sale deed is a type of conveyance deed. The sale deed and other deed documents are helpful when selling your property.
While the documents discussed above may help the owner in selling their property, the sale deed must include its new owner’s name recorded in the papers. Recording the sale deed in accordance with the Indian Registration Act is crucial.
When writing a format for a sale deed, it is essential to consider various aspects. This article gives precise details on what constitutes a sale deed and the format of the sale deed.
What is a sale deed?
A sale deed is a legal document that permits the owner or the seller who owns the home to assign property rights in the buyer’s name. The property is registered at the local sub-registrar’s office after the seller has drawn the sale deed draft. In many cases, buyers often ask if it’s mandatory to have a registered sale deed. Yes, it is crucial to get a sale deed registered. If a sale deed is unregistered, the purchaser cannot be the legal proprietor of property in the legal sense.
The seller is called the vendor in the sale deed, and the buyer is the vendee. The meaning of the sale deed in Hindi is Bikrinama or Bainama paper. The sale deed meaning in Marathi is Vikri Karara. Sometimes, people use the term “sale deed” as the title deed. But, there’s a distinction between a sale deed and a title deed in the context of the law.
Furthermore, different elements must be taken care of at the time of the creation of the sale deed. In addition to the components, the sale deed should contain several clauses in accordance with the Transfer of Property Act.
A sale deed covers everything from the rights and obligations of both parties to the property’s details. You need to write the sale deed draft first when creating the sale deed. Then, based on the seller and buyer’s needs, some clauses may be added or removed from the sale deed draft to complete it. When the sale deed draft is completed and signed by both parties, register the sale deed under the buyer’s name upon its completion.
Documents needed to be present at the time of the creation of the sale deed draft are the building plan, an allotment letter from the builder, recent tax receipts, current utility bills (electricity), a power of attorney, title documents and in the event of resale of a property, all previously registered agreements.
Components of a Sale Deed
When making the sale deed draft, the document must contain a variety of important elements. The following are the essential elements to be included in the sale deed draft.
- Information of both parties: The details of both parties, including their names, contact numbers, and ages, are included in the sale deed draft.
- Indemnity Clause: This condition is an addition to the property in order to ensure that the seller releases the buyers from any previously incurred taxes, loans and other charges associated with the property. Additionally, the seller must take care of any mortgages and loans before closing the sale of the property.
- Payment Information: The amount at which the property owner plans to sell the property must be stated within the sale deed. Along with the sale price of the property, details regarding the advance payment paid by the buyer should be clearly stated within the sale deed. The amount to be paid in installments and the dates for each installment must be included in the deed.
- Mode of payment: The method of payment must be recorded explicitly in the sale deed. The standard payment methods, including bank transfer, cheque, as well as cash, are clearly stated within the sale deed.
- Possession of Property: The sale deed will record the date the buyer will get ownership of the property.
Achieving a Certified Copy of the Sale Deed
It is the responsibility of the property owner to keep the sale deed with proper care. If the property owner misplaces his sale deed at any given time, he must make a formal complaint at any nearby police station.
After making the formal complaint (FIR) at the police station, a non-traceable certificate is given to the property owner. After the non-traceable certificate gets issued, make an announcement in the local newspaper regarding the loss of the sale deed. In the next step, you must submit an affidavit and the application to the sub-registrar’s office to obtain a certified copy of your sale deed.
Things to Consider when executing a sale deed
Here are some crucial points to keep in mind when you are executing the sale deed.
- The sale deed should contain a clause that transfers ownership rights to the buyer when the purchase is completed.
- The title of the property has to be clear of all encumbrances.
- All utility bills, including electricity bills, water bills and property tax associated with the property, must be paid.
- There should be no additional fees, such as maintenance and pending charges.
- A sale deed should specify the terms and conditions on which the property is sold.
The Bottom Line
Lastly, the sale deed is an essential document since it proves the ownership of the property. The sale deed is also a record of all the information related to the property, the buyer and seller, the payment, and other information. The buyer must pay the required stamp duty in order to register the sale deed.
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Components of a sale deed Frequently asked questions (FAQs)
Ques- Why a sale deed is needed?
Ans- The sale deed document is a kind of proof of ownership. It is crucial, particularly when you plan to sell your property. Also, before the sale deed document is completed, all property-related taxes must be paid in full.
Ques- Does the sale deed have any validity?
Ans- The most crucial aspect of a sale deed is its registration. If a sale deed is registered, its validity is until the owner decides to sell his property to a different person. In the event of the transfer of property, the owner’s name on the sale deed will change.
Ques- Who makes the sale of deed?
Ans- The land owner whose name is there on the sale deed prepares the deed when the property is sold. The owner of the property, along with an attorney or property advocate, prepares the sale deed.
Ques- Can you sell your property without the original sale of deed?
Ans- Buyers should be cautious when they are planning to purchase a property without an original sale deed. Because a sale deed is a crucial document, purchasing such a property is a substantial risk.
Ques- Do you need a sale of deed for a home loan?
Ans- A sale deed is an essential document and is necessary to get a home loan. When you apply for a loan to purchase a home, the owner must provide an original sale deed to the lender. When the loan is paid back, the lender will return the sale deed to the property owner.
Ques- What should I do if I lose my original property documents?
Ans- If you’ve misplaced your property’s original sale of deed, you must submit an FIR at the closest police station. The FIR copy must be secured with the owner for future reference.
