Due to increasing numbers of property frauds and scams in India, it has become a reason to worry for Indians for buying and selling a house or property. A written document which shows the transaction between the buyer and seller has become a necessity in order to buying or selling of property. Among numerous kinds of property documents, Sale Deed is one of the most important property documents between a seller and buyer. We will now further discuss the definition, requirement, and other aspects of a sale deed in India.
Definition of Sale Deed
A legal document stating that the Seller has transferred the absolute ownership of the property towards the buyer is a Sale Deed. The deed of sale in India defines the rights and interests of an individual over a property and now he/she has transferred the same to another person.
In India a sale deed is considered to be valid only when both parties give their valid signatures and both the parties have agreed over the terms and conditions given in the deed. A sale deed is registered under the Registration Act, 1908 and it should be done within 4 months from the date of execution. The Sub-Registrar of Assurances, of the jurisdiction where property is purchased, registers the sale deed in India.
Composition of Sale Deed
In India a Sale deed is drafted by property contract drafting and vetting lawyers and a sale deed must include the key elements that protect the rights and interest of both the parties to contract. The main elements of a sale deed are:
- Name and details of parties to the contract i.e. Buyer and seller.
- Both the parties should provide their photographs
- PAN number of both the parties
- Tax liability
- Free from a claim against a property by a party that is not the owner.
- Consideration amount; that at what price is the property sold
- Representations and warranties
- Details of Payment of stamp duties and registration fee
- Absolute/partial right
- Name of person paying stamp duty
- Indemnity; promise against the damages or loss
- Two witnesses are required to assure the completion of deed with their details like name, phone number, address, etc.
- Signatures of both the parties and witnesses are necessary
- Dispute resolution
- Governing law
- Description and schedule of property
Parties Involved in a Sale Deed
Any Sale Deed’s first provision is to mention the details of both parties i.e. the buyer and the seller. The name, age, address, etc. should be mentioned in the provision of both parties in order to secure the rights and interests of the parties. The buyer and seller have to sign, execute and register the sale deed.
Details of the Property
The property which is being sold and purchased by the parties should be properly mentioned in the deed. The total plot area must be mentioned properly, and ID number, construction, surroundings, location, etc should also be mentioned.
Sale Agreement
The sale agreement is usually drawn before the formation of sale deed. In this agreement it is stated that both the parties would mutually settle the terms in the agreement as it will not affect the rights and interests of any party. The information about execution of sale agreement should be mentioned in the Sale Deed.
Price fixed by the parties for the Property
The price at which the property is sold/bought has to be mentioned in the deed including details of any advance payment, the mode of payment like, cheque, cash, etc along with if any loan taken, then its installment or payment cycle details with the consent of the seller that he accepts all the modes that are used for payment purpose.
Passing of the Title of Property
It should be mentioned in the Sale Deed that at which date the title of property would be transferred to the buyer from the seller. And once the title is passed the buyer will possess the rights of the owner.
After the completion of registration process the possession of the property shall be transferred to the buyer by the seller.
Indemnity Provision in the Sale Deed
The protection against any damage or loss mainly in form of a promise is Indemnity. It becomes important to involve this indemnity clause in the deed as property frauds are increasing day by day in India.
In case of matter pertaining to execution of Sale Deed in Faridabad you can contact –
Advocate Sunil Kumar Bakshi
Office – 2043/16 Faridabad – 121002, Near Jain Mandir
Also At – Chamber No.272, District & Sessions Court, Faridabad.
Mobile – +91-9873750515, 9811680103
Website – www.bakshiandassociates.com
