Real Estate: What is Sale Deed?

Buy a property - What is a sale deed
What is a sale deed

What is a sale deed?

The sale deed is a legal document that acts as an evidence for the sale & transferring the ownership of the property to the home buyer from the seller. So the buyer can use this in future as it establishes the right and ownership of the property under his name.

It is also known as conveyance deed in which the seller transfers the ownership to the buyer and then buyer attains a complete ownership of the property purchased.

 

How is the Sale deed executed?

1. The sale deed is executed after the sale agreement is executed in compliance with some terms & conditions in the sale agreement which is agreed between the buyer and the seller.

2. A draft sale deed is prepared with an approval of both buyer & seller having listed the terms and conditions regarding the sale of the property.

3. A draft sale deed contains all the details about both the parties and documents related to the property sale such as, property details, agreed sale consideration, the down payment paid, payment mode, the time limit for further payments, time to hand over the original property documents, time to hand over the possession of the property purchased, and so on.

4. A draft deed is prepared on a non-judicial stamp paper which is prescribed by the Stamp Act of the State. During this, the buyer has to pay the stamp duty fee in according to the rules applied in the stamp.

5. The sale deed is prepared after completing all the formalities which are executed concerning all the parties involved.

6. All the pages of the deed should be signed with at least 2 witnesses providing their respective full names, signatures and addresses.

7. A compulsory registration of the property is required in the sub registrar’s office with all the parties present at the time of registration by submitting all original documents.

8. What if the buyer is unable to present in the sub registrar’s office? The power of attorney is given to a representative by the buyer to submit all the necessary documents and sign on his behalf. Also, the photograph, signature and thumbprints are included in the sale deed as well.

9. The documents are to be submitted after both the parties sign it. It is to be presented before 4 months of the execution date. A time period of another four months is provided with a penalty in case of failing to submit the documents on the said date.

In conclusion, the stamp duty & the registration charges are liable to be paid by the home buyer.

 

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