The sale deed is a legal document that outlines the terms and conditions of the sale. It is executed by the seller and the buyer for the transfer of ownership of property. It outlines the important information regarding the price to be paid for, description of the property, how and when the owner will get transferred to the buyer etc. It is an essential document as it is the proof of ownership of the property.
Sale deed must be registered in the local sub-registrar office.An unregistered sale deed has no value in the eyes of law. The sale deed is made on non-judicial stamp paper, that is purchased as per the circle rates of the state.
Elements of the Sale Deed
- Name and Address of the executing Parties: Sale deed must specify the name and address of the buyers and the sellers.
- Description of the property: The complete address of the property and description and type of property such as residential flat, Kothi, bungalow, shop, office etc should be mentioned.
- Sale consideration: The sale price agreed between buyer and seller i.e the amount which the buyer has to pay on the execution of sale deed must be mentioned in the sale deed. Also if any advance has already been paid should also be specified in the deed. The mode of payment such as through cheque, Demand draft, an online transfer is also important and should be mentioned in the sale deed.
- Passing the Title: The sale deed should specify the time when the title of the property will get transferred to the buyer. All the documents related to the property must also be handed over to the buyer.
- Indemnity: Make sure that title of the property is free from any charge or encumbrances i.e. any other person does not have the right to the property to be transferred to the buyer. In case such situation arises, the seller shall be made liable to indemnify the buyer against any loss.
- Registration: A sale deed is not legally binding unless it is registered in the sub-registrar office. Both the buyer and the seller along with their witness must be present at the registrar office on the fixed date for the registration of deed. The stamp duty and registration fees have to be paid for getting the registration done.