Skip to main content

Sale Deed

                                          Sale Deed 

A sale deed is a legal document that showcases the transfer of title, rights, and ownership of a property from a seller to a buyer. Sale deed is defined under Section 54 of the Transfer of Property Act, 1882 as; “Sale” is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. A sale deed is made on a non-judicial stamp paper. It is governed by the Registration Act 1908. These parties are also referred to as the ‘Vendor ‘ and ‘Vendee’ in legal documents. A sale deed indicates that the title of ownership has been transferred from the seller in favour of the buyer; or in simpler words, the ownership has been changed from the seller to the buyer. Section 54 of the Transfer of Property Act 1988 defines shade as the transfer of ownership of immovable property for consideration. This transfer of ownership from the seller to the buyer is done by the document called sale deed. Ownership of the properties is an important thing so drafting a sale deed must be faultless

A sale deed consists of the following information:

 ∙ Details like name, age, and address of the seller and buyer.

 ∙ Property details such as total area, details of construction, and exact address.

 ∙ Final deal price of the property which also includes the advance payment paid and the mode of payment.

 ∙ The time frame for transfer of ownership to the buyer with all the original property documents.

 ∙ An indemnity clause is where the seller promises to pay the buyer for any damages in case of disputes with regards to the ownership, that might result in monetary losses to the buyer.

 ∙ Default clause, if the buyer or seller is in default. The defaulting party will pay the penalty to the non-offending party so the sale deed is not affected.


What does a sale deed consist of?

 1. Parties of the sale deed 

needless to say, a sales deed must begin with the details of the parties involved with the transaction. It should bear the name, age and addresses of the parties (buyer and seller) involved in the transaction, in order to make it valid. Both parties must sign and execute the deed with bona fide intention.

 2. Description Of The Sales 

Property The sales deed must have a proper description of the property you intend to buy. For instance, if you are buying a 3BHK in Bandra, the sales deed should have the total plot area, identification number, details of construction, the exact location and surroundings. The property schedule must be incorporated in the sale deed to define the accurate location of the property.

 3. Sales Agreement

 This document is drawn up when you pay a booking amount for your new apartment in Mumbai. This agreement states that both seller as well as the buyer shall mutually settle the conditions and terms of the agreement so that it won't affect the rights of either party. Usually, the sales agreement is drawn up before the sale deed. 

4. Clause Of Sale Consideration 

The amount agreed between the buyer and seller must be included in the sale consideration clause. This is the amount that the buyer agrees to pay to the seller during the sale deed execution. The sale amount should be stated clearly on the deed, as it was agreed upon. 

5. Advance Payment And Payment Mode

 If you have paid anything in advance to the builder or seller for booking the flat, then this should be mentioned in the sale deed clearly. The remaining amount payable must also be written in the document. The mode by which you will be paying the amount—cheque, cash or DD must be mentioned along with the consent of the seller to accept it in the form

 6. Passing Of The Title 

The sale deed should mention when the property title shall be passed to the buyer. The seller must be given a time limit for the title transfer. Once the title has been transferred, all related rights shall pass onto the buyer. 




7. Possession Delivery 

A clause in the sale deed must bear the information that the possession of the property shall be transferred to the buyer by the seller after completion of the registration process. The sale deed should state the actual date of delivery of possession. 

8. Indemnity Provision

 This is mostly applicable in case of a resale property. The clause states that the seller should clear all statutory charges such as electricity bill, property tax, water bills, maintenance charges and society charges and all other. dues prior to the sales deed execution. In case a home loan was taken to purchase the property by the original buyer, then the seller must repay the loan and get the papers back from the bank. As a conscious buyer, you should scrutinize the status of encumbrance from the sub registrar or registrar's office.

 9. Default Clause Sales agreement

It should ideally bear a clause that if there is any default on the part of the buyer or seller then the party defaulting shall have to pay a penalty to the non-offending party so that the execution of the sale deed is not affected. Once the sale deed has been prepared, it must be ratified by two witnesses from both sides. The witnesses shall have to provide their full addresses, signatures and names. The signatures of the buyer and seller must be present in every page.


Parties Involved in the Sale Deed

 In the sale deed, there are two parties, who are called seller and buyer. The seller, also called transferor, transfers the ownership of the property and the buyer, also called transferee, gets the ownership of the property. According to the law, any competent individual, a person or a company can be involved in the process of transferring any property. 

    In conclusion, The sale deed describes the rights of both the parties and protects them from any risks. The sale deed avoids any ambiguity. It Defines the area, i.e the buyer gets the paper where the details of the area are well defined. It is beneficial for the buyer to get a clear idea of the structure and location of the property. And in additional benefit a sale deed is enforceable by the law, the parties can have faith on the legality of the sale deed.

 The mentioning of the details of money in the paper reduces the chance of troubles. The property is not taken for granted given the existence of a registered and stamped legal document.
Labels:

Comments

Post a Comment

Popular posts from this blog

Section 58B of The Advocates Act - Special provision relating to certain disciplinary proceedings

 Section 58B The Advocates Act Description (1) As from the 1st day of September, 1963, every proceeding in respect of any disciplinary matter in relation to an existing advocate of a High Court shall, save as provided in the first proviso to sub-section (2), be disposed of by the State Bar Council in relation to that High Court, as if the existing advocate had been enrolled as an advocate on its roll. (2) If immediately before the said date, there is any proceeding in respect of any disciplinary matter in relation to an existing advocate pending before any High Court under the Indian Bar Councils Act, 1926 (38 of 1926), such proceeding shall stand transferred to the State Bar Council in relation to that High Court, as if it were a proceeding pending before the corresponding Bar Council under clause (c) of sub-section (1) of section 56: Provided that where in respect of any such proceeding the High Court has received the finding of a Tribunal constituted under section 11 of the Indian B
Post a Comment
Read more

Case Laws related to Defamation in favour of ClaimantCase Laws related to Defamation in favour of Claimant. TOLLEY Vs, J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement. Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be asked to resign from his respective club. Furthermore, there was evidence that the possible adverse effects of the caricature on the claimant’s reputation were brought to the defendants’ attention. The trial judge found that the caricature could have a defamatory meaning. The jury then found in favor of the claimant. Held The House of Lords held that in the circumstances of this case – as explained by the facts – the caricature was capable of constituting defamation. In other words, the publication could have the meaning alleged by the claimant. The Lords also ordered a new trial limited to the assessment of damages. NEWSTEAD V LANDON EXPRESS NEWSPAPER LTD, (1939) Facts: A newspaper published a defamatory article about Harold Newstead. However, another person with this name brought an action in libel. He claimed that the article had been misunderstood as leading to him. The defendant newspaper recognised that they published the article. Also, they denied that they had the intention of being defamatory of him. Consequently, the claimant argued that the newspaper was under a duty. The duty was to give a clear and complete description of the correct person. Moreover, the claimant argued that the defendants were in breach of the duty. Issues: The issue in Newstead v London Express Newspaper, was if the reasonable persons would have understood the words complained of to refer to the plaintiff. Held: The Court of Appeal stated that in accordance with the current law on libel, liability for libel does not depend on the intention of the defamer; but on the fact of the defamation. Accordingly, a reasonable man, in this case a newspaper publisher, must be aware of the possibility of individuals with the same name and must assume that the words published will be read by a reasonable man with reasonable care.

  Case Laws related to Defamation in favour of Claimant.  TOLLEY  Vs,  J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement.   Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be aske
1 comment
Read more

Rules as to delivery of goods

                             Rules as to delivery of goods Section 2(2) of Sale of Goods Act defines ‘delivery’ as a ‘voluntary transfer of possession from one person to another.’ Thus, if the transfer of goods is not voluntary and is taken by theft, by fraud, or by force, then there is no ‘delivery. Moreover, the ‘delivery’ should have the effect of putting the goods in possession of the buyer. The essence of the delivery is a voluntary transfer of possession of goods from one person to another. There is no delivery of goods where they are obtained at pistol point or theft. 1. Mode of Delivery: According to Section 33, delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorized to hold them on his behalf. Delivery of goods may be actual, symbolic or constructive. 2. Expenses of Delivery: According to Section 36(5), unless otherwise agree
Post a Comment
Read more