What is a Sale Deed?
The sale deed is a legal document. It contains details of the transfer of property ownership from a Seller(vendor) to a Buyer(Purchaser). This is one of the most valuable legal documents while purchasing or selling a property. It is executed at the time of actual transfer of property ownership at a sub-registrars’ office. This document should follow Registration Act. Registration of this document is necessary. It is usually drafted as a continuation of the sale agreement. All the terms and conditions mentioned in Sale Agreement should follow a deed of sale. A sale deed is also otherwise known as conveyance deed. It is also a proof that the buyer is the absolute owner of the said property.
What are the typical clauses one must have in a sale agreement draft?
It contains the followings,
- Date on which sale agreement is being executed
- Name, Father/Husband’s Name, Age, Address and PAN card details of the Vendor(s) and Purchaser(s)
- Schedule of the property
- Title flow of the property
- Total sale consideration i.e. total sale value
- Payment schedule & mode of payment
- Vendor obligations and declarations
- Indemnification by vendor
- Non-solicitation by Vendor
- TDS details
What are the required documents for drafting a sale agreement?
- Absolute Sale Deed
- Khatha certificate & Khatha extract for current year
- Sale agreement executed between Seller and Buyer (if any)
What is the difference between a sale agreement and a sale deed?
A sale agreement states the terms and conditions of a sale. A sale deed indicates the transfer of the ownership documents from the seller to the buyer.
What happens on the day of registration?
Once you decide the jurisdiction of the property and the sub-registrar, you would need to take an appointment at the sub-registrar office. On the day of the registration take three Demand Drafts (DDs) at the sub-registrar office. You should bring original photocopies of the following documents:
- Current year tax paid receipt
- Present year’s Khatha certificate and Khatha extract standing in the names of the seller(s).
- Vendor(seller) sale deed i.e. previous sale deed
- Executed sale agreement along with its stamp duty paid receipt
Both seller, buyer and two witnesses (above 22 years) should appear with I.D documents on the registration date. Everyone should carry a photocopy of the I.D. For more information you can visit the page.