Are you looking for the meaning of the term Sale Deed? Then, explore this article where you will learn about the Sale Deed, the elements, process and advantages.
Introduction
A sale deed is a written document signed by both the seller and the buyer at a time when the property is being sold. It is a particular document used to transfer ownership rights of a property from the seller to the buyer. The property sold, usually a house or another piece of real estate is referred to as the property.
A Sale deed is a written document inked by both the dealer and the buyer at a time when the property is being vended. A sale deed is a necessary document for each the parties that are registered in accordance with the Registration Act, 1908.
This document acts as the definitive proof of a transaction in the case of a registered deed. In other words, the document is a type of instrument that is used to transfer the ownership of a property. It has many significant contributory factors like protecting the rights of buyer and seller and preventing fraudulent acts that might hamper a property sale. The purchaser needs to ensure that the documents is certified and can be legally used to transfer the title deed.
The Sale Deed Features
1) Generally, all Sale Deeds accomplish the sale and transfer of ownership rights in an immovable property from the seller to the purchaser in exchange for a specific fee amount.
2) A Sale Deed document establishes to execute the final purchases to lay down criteria that must be followed when processing the transaction.
3) A Sale Deed is a statutory and significant document.
4) It is an essential legal document that serves as proof of the transaction and is executed at the moment of sale and transfer of the property and the rights therein.
5) Both parties to the transaction, the Vendor and Purchaser, should complete the sale and purchase of the property by duly signing the Sale Deed document.
6) The transaction of the sale and purchase of the property should occur in the presence of at least two eyewitnesses.
7) A legal draftsman creates the document by complying with all the requisite legal policies and conditions outlined in the Transfer of Property Act. This ensures that they can gain perfect title to the property by the value prescribed by the authority of the Stamp Duty. The buyer must pay a fixed value that is explicitly mentioned for every state.
8) In selling and buying property transactions, the seller usually uses a Sale Deed to transfer the ownership rights to the buyer.
9) The buyer concerning the sale deed registration and the transferred rights is entitled to the rights as mentioned below:
- Selling Rights
- Usage Rights, and
- Lease or Mortgage Rights.
Parties Involved in the Sale Deed
In the Sale Deed, two parties are involved in the contract of any such sale. They are:
1) Transferor:
The transferor is the seller who transfers the property with the ownership rights to the property buyer.
2) Transferee:
The transferee is the party who obtains the ownership rights inherent in the property when he purchases it from the seller.
What are the Elements contained in the Sale Deed?
- The parties’ names, father’s/husband’s name and addresses
- Payment mode and a time of sale consideration
- Property address and property area with a detailed description
- Statutory Compliance
- Possession Delivery
- Encumbrances on the property, such as a loan or a mortgage
- Penalty or compensation clause in case of default
- Date of deed execution with registered deed number, serial number, book number, page number, and so on
- Utility bills, property taxes and other statutory payments.
Registration Process
By the Registration Act of 1908, a Sale Deed must be registered. The following steps are required to get a Sale Deed registered:
Step 1 — Presence of a lawyer to carry out the transaction of transfer and its detailed observation and study
Step 2 — Whenever possible, the supply of proper information is necessary
Step 3 — Next, the lawyer will work on your issues related to the documents with all the information so gathered
Step 4 — Your lawyer will provide you with a draft after a few days
Step 5 — Lastly, you will need to examine and analyse all the information you have supplied. If there are any revisions to be made, please notify your lawyer.
Advantages of a Sale Deed
A Sale Deed is a powerful instrument that allows you to sell an immovable asset and transfer its rights from a seller to the buyer for a lifetime. Without it, one cannot claim ownership of any property. The advantages that accrue from registering into a Sale Deed are as follows:
1) The Sale Deed is a legal document making it legally binding on both the party’s end.
2) A Sale Deed safeguards the contracting parties’ rights in the sale and purchase of the concerned property.
3) It ensures the completion of Sale transactions securely and conveniently.
4) It clearly states the Purchaser’s and Vendor’s rights and responsibilities.
5) It specifies and discusses the attributes of the property in detail.
6) Another advantage of the transaction under a is that the entire selling procedure is now stamped and recorded.
7) A well-drafted Sale Deed eliminates any uncertainties and most possibly reduces hazards to the minimum.
Conclusion
To conclude, it is a legal written document providing evidence of property ownership. It is often used when real estate is to be sold. Typically, the documents will include information about the seller of the real estate, the real estate buyer, a description of the property and any other pertinent information.
It is a legal safeguard against future arguments for the property’s ownership. The deed is a very useful document, especially in a dispute. Transactions under the Sales Deed protect against unexpected entry into the home. It also provides a legal way of selling the home to a new owner. Thus, a documents is a must for any property you intend to sell. Please visit the Vakilsearch website to know more about the Sales Document and other legal-related documentation issues.
Read More:
