A sale deed is one of the most crucial documents when purchasing a home. By serving as a formal proof of ownership, it confirms your status as the property's owner. Read this article to learn about 8 things that will change your approach to sale deeds.
An official document called a sale deed is used to track the transfer of ownership from the seller to the buyer. Every section of the Transfer of Property Act section should be carefully reviewed and constructed when creating a Sale Deed. The provisions should be written once you clearly grasp your needs and obligations.
We frequently hear expressions like “let an apartment to a tenant,” “mortgage land for a loan,” “lease stores,” “purchase real estate,” etc. This illustrates the variety of ways that land-related transactions might take place. Individuals, businesses, or governmental entities may engage in land purchase or sale transactions and come across a legal transaction known as a Sale Deed. It has significant value for both buyers and sellers. Let’s first go over what a sale deed is so that we can better understand its contents.
What’s a Sale Deed?
The price, terms, and conditions of the two parties’ agreement to sell the property are spelt out in this contract in precise detail. Since every state has a different stamp paper value when it comes to writing sale deeds, the land sale deed is written on non-judicial stamp paper with a fixed value set by the state government.
The Payer?
The seller makes sure that all outstanding debts related to the property, including the loan taken for the property, the property tax, the water bill, and the electricity bill, are paid before signing the final sale deed agreement. However, the buyer is responsible for paying the stamp duty and registration fees.
Before being legalised, the draught sale deed must have specific information. These consist of:
- Type of deed: In addition to selling real estate, people frequently lease or mortgage their immovable property. Thus the agreement must specify whether it is a Deed of Mortgage or Deed of Sale.
- Information on the parties: The sale deed agreement provides the names, residential addresses, and ages of the parties involved.
- The deed of sale: It includes information about the property’s location as well as relevant facts like the number of rooms, balconies, plot size, and construction area, among other things.
- A sale agreement: It is an agreement which both parties must agree to and sign before the property deed. In addition to outlining the transaction specifics, including the date, amount paid in advance, balance owed, and payment method, the agreement says that both parties agree to acquire and sell the specified property.
- Transfer of title: After both parties have signed the sale deed, the buyer is given the title of the property’s legal owner and has all ownership rights.
What Happens Next?
Following the execution of the sale deed, you carry out the registration process, with the deed of sale registering the sale of the relevant property per the Registration Act of 1908. The parties sign the property deed at the local sub-office registrars before the requisite witnesses and paperwork. The certified copy of the registered property with the buyer’s name is accessible at the sub-office registrar’s once the contract has been signed.
A quit claim deed can be used to transfer ownership interest, though, in cases where one needs to give the property to a close relative. It is obvious when the quit claim deed includes the transferor’s and transferee’s full names.
8 Simple Procedures for Registering a Property
We provide you with helpful advice that will enable you to complete the process without difficulty, even though you may have already read a great deal about it and must be knowledgeable about it. Here are 8 things that will change your approach to sale deeds.
- Prepare: Prepare by sitting down the paperwork needed for the registry. Do not mess with it. If you are not careful, you risk losing the paperwork. Make sure you have all your documentation gathered before leaving the office.
- Timings: The Sub-Registration Magistrate’s office is typically open from 9.30 am to 6 pm every day. Lunch is between 2:00 and 2:30 pm. Check the timelines and adjustments brought on by the COVID-19 pandemic.
It is only preferable if you do not have any other plans for the day of the property registration. You can be sure that you will spend the entire day here. You need everything to go perfectly, so maintain your attention solely on that one thing.
- Payment: These days, everything is completed digitally, so you pay income tax and registration fees well in advance of showing up in the sub-office registrars to register your property. Use legal counsel to handle this aspect of the deal as well. An appointment is only taken for property registration when sales tax and registration fees have been paid.
- Keep: Keep your Aadhaar and PAN Card always close by, together with the property document. You could present your voter ID card, driver’s licence, or passport instead of an Aadhaar. When the Teller, Reader, and Sub-Magistrate call your name, these are the first items you must flash.
- TDS: If the purchase size was greater than ₹50 lakh, the buyer would need to provide documentation proving that he withheld 1% of the property’s worth as TDS. Always keep the paper with you.
- Witness: The success of the process depends greatly on your witnesses. They must accompany you during the entire process and carry identification that is currently valid. People you know well should preferably be your witnesses. Never think of their involvement in the process as being purely intellectual.
- No benefits: In the sub-office, registrar, everyone is treated equally. For example, there are no designated lines for women or senior persons.
- Delivery: The registration of your documents typically takes 15 days. Only after you present the receipt that was given to you at the time of registration will your documents be returned to you. If you have a home loan, the bank may send a representative to pick up the paperwork. You might simply gather the documents and deliver them directly to the bank.
Conclusion
People can avoid getting ensnared with shady brokers and mediators by thoroughly understanding the property registration process. If you don’t exercise caution when buying a house, you could easily fall victim to fraud. For the registration process, you can also look for professional assistance. First-time home purchasers will find the advice to be very helpful.
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