A sale deed is one of the important facets of conveyance, which shows the legitimacy of the transactions related to property. It is a legal document which holds an evidentiary value that creates a nexus between the parties involved. The nature of the goods should be tangible and the quality verifiable. A sale deed or conveyance deed is a document which is drafted at the time of sale of the property. The signing of deed signifies that the process of sale has been completed. The seller transfers the right of ownership to the buyer through sale deed. As soon as the document is signed, the buyer becomes the complete owner of the property. Usually, a sale deed is executed only when both sellers and buyers are fully satisfied and are ready to comply with the terms and conditions as mentioned in sale agreement. Other than selling a property, people sometimes tend to mortgage or lease their immovable assets, so the agreement has to mention if it's a Deed of Sale or Deed of Mortgage. The person selling their property must be termed as seller or lessor and the person who takes the property or to whom the rights are transferred must be termed as buyer or lessee. The sale of deed for Movable property is governed by the Sale of Goods Act, 1930, and the Sale deed created for Immovable Property is governed by the Transfer of Property Act, 1882. The immovable properties for being transferred and executed require a draft of agreement to sell in the first instance itself.
The procedure followed and practiced according to the laws time being in force is given below:
A deed of sale is a legal document that actually transfers the rights attached with a property from one party to another. It is usually drafted as a continuation of the agreement to sell which is the mandatory step. A set of terms and conditions must be chalked out and shall be duly performed. Sale deed is one of the crucial evidence that proves the identity of the actual owner of the property along with other important details which signifies and ensures the legality of the property being sold. If the property which is the subject matter is transferred through the contract immediately- it is called Sale. Whereas if the property’s transfer is on a future date and subject to further terms and conditions – it is called Agreement to Sell.