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.