Understanding What Is Sales Deed
A sale deed property is actually the basic legal document that’s needed for transferring the ownership of any real estate property from one person to another. This serves as the basis for purchasing & registering the property. It contains all the details required to legitimize the transaction. Let us understand the meaning of a sales deed.
What Is a Sales Deed?
Let us look at the meaning of the sale deeds. Well! The meaning of sale deed is that it is a purchase contract that sets out the terms of a real estate sale. It is concluded by both the seller & the buyer. This document contains crucial info including agreed
price, property description & ownership transfer details etc. The document acts as proof of ownership. Once signed & registered, it ensures that the sale is legally binding. So, this was the definition of a sale deed. Now that you have understood the meaning of sale deeds, let us delve deeper into the concept.
Conclusion of Sale Contract
As per the Indian-Registration-Act (year 1908), any transfer of title in immovable property exceeding Rs 100 should be registered. Hence, contracts for sale of immovable properties including apartments, land, buildings, etc. should be legally registered. In this process, the seller tends to transfer the ownership to a buyer for the agreed consideration. Registration should be done with a non-judicial stamp at the local sub-registrar’s office. The cost of this is specified by the state’s stamp duty laws. It is typically between four percent to six percent of the sale price of the property. Registration makes the sale legally valid as both parties must sign it in the presence of at least 2 witnesses.
Essential Elements of a Sale Contract
A comprehensive format sale deed should contain the following: ● The names & addresses of the concluding parties and the details of the buyer & seller.
- A detailed description about the property.
- The amount of the sale.
- The property transfer procedure.
- Indemnity clause.
- Registration details.
Procedure for Obtaining
Typically, the buyer prepares a sale agreement after getting the necessary documents from the seller. It is recommended to consult a lawyer or a legal expert for verifying the seller’s ownership & title deeds. The lawyer prepares the sale agreement. This is finalized after approval by the seller. It is then registered with the Deputy Registrar.
Documents Required
A number of documents are mandatory for preparation & registration of a sales deed:
- Sale agreement
- Payment receipt
- Notice of Allotment
- Property tax receipt
- Occupancy certificate
- Encumbrance certificate
- Certificate of Occupancy
- NOC or No-Objection-Certificate
- GPA or General-Power-of-Attorney
- Copy of building/site plan drawing
Difference between Sale Deed & Sale Agreement
A sale agreement expresses the seller’s intention to sell and the buyer’s intention to purchase the property for a specific amount. But this doesn’t transfer the ownership. Only the sales deed, once signed & registered, makes the legal transfer of ownership.
Cancellation
A sale deed can usually be cancelled by both parties, by mutual agreement or by judicial intervention, if any one party fails to comply with the contract. The Specific-Relief-Act (year 1963) lays down the conditions for cancellation. These include the requirement that the sale deed be registered under the Indian-Registration-Act (year 1908). Once removed, the property reverts to the seller, and as per that, the court notifies the Deputy Registrar to update the records.
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