Sale Deed

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Sale Deed

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.

Essentials of a Sale Deed

  • Every single description, identity and history of the ownership.
  • That the property holds clear titles verified on its terms by the purchaser
  • A definite mention to the Agreement to Sell and the pricing aspects.
  • Release of the property with description of each and every minutes of the property.
  • That there is transfer of all rights, interests, claims etc relating to property.
  • The Buyer bears the stamp duty and the registration charges, and the seller must make sure there are no dues on the property.

Procedure for a valid sale deed

The procedure followed and practiced according to the laws time being in force is given below:

  • The seller of the property must have all the proofs showing him to be the true owner or holder of the capacity to transfer the property.
  • The sale deed is executed after the execution of agreement to sell; the deed must set out the terms and conditions.
  • All the material aspects regarding such transfer of right must be scrutinized and negotiated by parties in same consensus like property tax, water charges, electricity supply etc.
  • This legal instrument contains the subject matter of the sale along with the details of the parties, the property, the sale consideration, the advance payment, the dates, the mode of payment, the time for handing over the original documents and the possession of the property and its prescribed mode of operations for legitimate execution.
  • The sale deed is meant to be printed on a non-judicial stamp paper of value prescribed by the state government of the jurisdiction.
  • The deed is meant to be duly signed by both the parties, and it is mandatory that the deed should be signed by at least two witnesses, with their full names and addresses.
  • The sale deed is registered at the sub-registrar's office, which is mandatory as according to the Indian Registrations Act, 1908 where they must be present with their original documents, the deed must be properly stamped and registration charges to that effect must apply.
  • After the execution of the sale deed it must be registered within 4 months with the registrar, delay may give a grace period for another 4 months.

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.