Sale deed is a legally binding document specifically made to transfer the right, title and ownership of immovable property from one person to another in exchange for a price.Sale deed is implemented by Registration Act of India. A sale deed is considered to be valid only when it is signed by both the seller and the buyer and both the parties has to comply with the terms and conditions mentioned in the sale deed. A sale deed needs to be registered under The Registration Act, 1908 within four months from the date of execution.The registration is done by the Sub Registrar of Assurances of the jurisdiction, where the property is purchased.
MEANING OF TERMS INVOLVED IN A SALE DEED
Seller is a person who has current ownership of the property and is willing to sell his property for a price.
Buyer or purchaser or transferee is a person who is willing to buy the property.
Witness is a person who signs on the sales deed acknowledging to the fact that the buyer and seller have signed the sale deed in front of him.
A duty levied on the legal recognition of certain documents by the government.It is a kind of property tax which needs to be paid to the government while a property is being sold.It is calculated on the market value or the agreement value whichever is higher and stamp duty charges vary from state to state.
The registration fee is additional to the stamp duty charges. Registration fee needs to be paid to get the property transferred and registered in your name. The fee is either 1% of the market value or the agreement value, whichever is higher, however, subject to a maximum amount of Rs. 30,000. This fee is different in different states.
Title is the legal way of saying you own a right to something. Title refers to ownership of the property, meaning that you have the rights to use that property. It may be a partial interest in the property or it may be full. However, because you have title, you can access the land and potentially modify it as you see fit. Title also means that you can transfer that interest or portion that you own to others. However, you can never legally transfer more than you own.
After the preparation of sale deed it is executed when all the parties involved like seller, buyer and witnesses sign or make thumb impressions on the document.
To make a sale valid, a sale deed needs to be registered under Registration Act,1908 and this can be done in the sub registrar’s office in presence of both the parties.
Proof of Registration
The certified copy of the registered lease deed with the name of the buyer can be obtained from the registrar’s office which will act as a proof of registration.
The price of the property agreed upon by both, the seller and the buyer.
Mode of Payment
How the payment for the transaction is being made like through cash,cheque or online transfer etc.
It is an agreement between buyer and seller which clearly mentions details about the price agreed upon for the property and details of buyer and seller.
WHY YOU REQUIRE SALE DEED?
Sale Deed is very important document while purchasing any immovable asset. Sale Deed is a written agreement for transfer of rights for property from one person to another person. Sale gives rights to buyer to use property for lifetime. Sale Deed is only valid document which gives lawful right to purchaser for use the property. One can not claim rights of property without sale deed.
- Draft of Sale Deed/Title deed/Conveyance Deed
- 7/12 extract or RTC (Records of Rights and Tenancy Corps) or
- Khata Certificate and Extracts
- Joint development agreement, GPA, & Sharing/supplementary Agreement, between land owner and builder
- Power of Attorney if any
- Building plan sanctioned by the Statutory Authority
- Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.
- If any loan on the property (Current or past) / Original Property Documents with Bank
- Sale agreement with the Seller
- All title documents of land owner
- A Copy of all registered previous agreements (in case of resale property)
- NOC from Apartment Association (in case of resale property)