A sale deed is a crucial part of the property buying process. It is the most important legal document you will own once you buy a house. Legal draftsmen draw the sale deed or purchase deed on non-judicial stamp paper in accordance with the value specified by the state’s stamp duty laws.

The process and the transaction of buying any kind of property in India is not complete without both the parties signing the sale deed. It is the proof that the property in question was sold to the person in question legally according to the Registration Act, 1908. 

What Does a Sale Deed Include?

As a legal document in property sale and transfer, it includes all the different aspects of the transaction. 

• Parties Descriptions: Names, complete addresses, phone numbers, ages, and occupations of both buyers and sellers.
• Property Description: Identification number, specific geographic data, property measurements, and, if applicable, building details.
• An agreement is carried out mutually under the terms of which neither party’s rights are affected. And is carried out prior to the sale deed.
• Clause: The seller declares that the property being sold is free of any encumbrances, litigation, and charges. Any pending charges are covered by the seller.
• Pending Loan: Before proceeding with the sale, the seller should settle any pending loan taken out on the property as a mortgage.
• The Price: The price at which the transfer agreement is finalized.
• The Possession by the Buyer: The deed must also include the date the property was transferred to the buyer. In fact, it is proof that the property has been transferred to a new owner. 

Procedure of a Sale Deed

The Sale Deed must be registered in the office of the sub registrar. Even if a buyer pays the seller the whole sum up front, a Sale Deed that is not registered does not transfer possession to the buyer.

The steps for registering a sale deed are as follows:

• It is written by a legal professional or advocate.
• Taking into account the value of the property, the buyer acquires the stamp paper.
• All parties agree on the registration date.
• The entry money has been paid.
• In order to register, the buyer, seller, and 2 witnesses go to the sub-registrar’s office.

What Happens When the Sale Deed is Executed?

All property-related paperwork must be provided to the registrar’s office within four months following the execution of the Sale Deed. A four-month grace period may be obtained by paying a maximum fine of ten times the registration price.

The property registration process is completed once all paperwork has been inspected and approved by the sub-registrar. The office keeps a copy of the paperwork while the buyer receives the originals.

Wrap Up

A sale deed is an important part of the property buying process. The sale document also contains information about the property, the buyer and seller, the price, and other items. Stamp duty for recording the sale deed is paid by the purchaser. The property owner is responsible for keeping the sale deed up to date.

About Us

Achyut Group is a trusted brand due to its ethical values among the customer, vendors, and competitors. We believe in creating environment-friendly green buildings by conserving energy, water, and wood. The promoters of Achyut Group combine over 20+ years of experience in the construction legal, finance, and marketing sector.