Sale of property should be legally documented so that the ownership of property is clear. A sale deed is a proof of transfer. All the factors involved in transfer of a property should be carefully followed. Let’s see in detail all about sale deed
Topics covered in this article are:
1. What is Sale Deed?
2. Purpose of Sale Deed?
3. Features of Sale Deed
4. Documents required for a Sale Deed
5. Importance of a Sale Deed
6. Process of drafting Sale Deed
1. What is Sale Deed?
A legal document which acts as a proof for sale of a property is called as a Sale Deed. It shows that transfer has taken place between two parties. Whenever a property is purchased or sold, the transfer is not legally complete without signing a Sale Deed
2. Requirements of a Sale Deed
Sale Deed acts as proof for transfer in ownership in the property from the seller to buyer. All the rights on the property is in the hands of transferee after the sale deed is signed. Once the transfer is done, ownership can be claimed
3. Features of a Sale Deed
Sale Deed includes certain information
a. Parties to the sale
The deed should clearly mention the details about seller/transferor and buyer/transferee. All the information given should be true and valid. Both the parties to the agreement must be above 18 years of age for the deed to be executed
b. Details of the property
The features of property should be mentioned in the deed. In case the property is a land the measurements of such land and location of the plot. In case the property is a car, the model and other details of the car is important
c. Sale Consideration
The most important factor of a sale is the consideration paid. The consideration paid is fixed by negotiation between the buyer and seller. Once the deed is signed, the amount cannot be changed
d. Payment instructions
Payment can be made as advance or in instalments. If consideration is not made on the date of transfer, the date of when payment is agreed to be made is to be mentioned. The due amount and advance amount paid shall be written
e. Transfer of title clause
When a property is transferred, there is title transfer such asset or property. Transfer of tile refers to transfer in ownership and rights on the property. Transfer of title need not happen on the same date of sale or payment of consideration. Sometimes the ownership will be transferred after the date of agreement
f. Documents required for a Sale Deed
Every Sale Deed has to be drafted in a given format. Requirements of sale deed is-
· No objection certificates- There are many no objection certificate that has to be prepared and acquired by a developer especially in case of buildings. These certificates may vary depending on states where the property is located
·Sale agreement- This is an important document which includes all the important details of a sale such as terms and conditions of a sale, date of transfer, payment etc
·Property tax- Every property has tax levy. Property tax receipts are also important to ensure that the previous owner has paid taxes properly and there are no tax dues
·Completion and occupancy certificate- These are important in case of property being a building. Once the building is completed the completion certificate is a proof that building is constructed as per the specifications and occupancy certificate is a confirmation that the building is ready to be occupied
4. Importance of a Sale Deed
· A sale deed gives legal protection to the buyer on the asset. A legal document is always required so that there are no further complications regarding ownership and rights on the property
· It gives clear idea of when and by how much the property is transferred to the buyer. The transfer may happen on a further date after the actual sale so at such circumstances the sale deed gives clarity
5. Process of drafting Sale Deed
· A lawyer is required in order to draft the deed as per the requirements of the law. The lawyer helps to draft sale deed as per the requirements of the parties
· Once the objectives of deed are clear, the lawyer drafts the final deed
· After reviewing the final draft, it shall be signed which is the legal sale deed and valid
So, the Sale Deed is legally valid document which is the evidence for transfer of property from seller to buyer. All the terms and conditions to draft a deed should be kept in mind and drafted accordingly. Seller should have met all the important compliance's such as all the bills and taxes on the property should be paid beforehand
Frequently Asked Questions
1. Who drafts a Sale Deed?
The seller or transferee with the help of a lawyer must draft the sale deed as per the terms and conditions
2. Are all Sale Deed in same format?
Sale Deed need not be of same format. As long as the deed covers all the important specifications of the transfer and such transfer is made keeping in mind the law, the deed shall be valid