A sale deed is a contract that validates transfer and sale of immovable property from seller to buyer(s). Properties are not legally valid until both seller and buyer or vendor and purchaser sign the document. Once a sale deed is signed between the two parties, the entire ownership right is bestowed on the buyer. This legal paperwork is drafted by a draftsman, rendering the sale complete.
However, besides knowing the meaning of sale deed, you should also learn about the other particularities of the document, its format, benefits, registration process, documents needed and the differences between a sale deed and a sale agreement. Read on!
A sale deed is a legal document that proves the transfer of ownership from the seller to the buyer. It is an important document that both the seller and buyer must have. The buyer and the seller must come to an agreement before this document is signed and transfer of property is finalised.
This legal document contains the following components, helping one derive discrete details regarding every aspect of transferring property ownership:
Here’s a format of a Sale Deed:
*Image Source: Finance Department, Government of West Bengal
A sale deed offers these advantages for both buyers and sellers:
Furthermore, you can secure your property transaction from any fraudulent act after registering a sale deed.
A sale deed must hold these details:
Furthermore, there must be a mention of stamp duty and registration charges.
Following these steps for registration:
Step 1: Firstly, compute property value depending on the circle rate prevailing in that region.
Step 2: Now assess the stamp duty. Stamp duty is determined based on the higher value of either circle rate or actual property value.
Step 3: Purchase non-judicial stamp paper of the evaluated cost.
Step 4: The sale deed is prepared and printed on stamp paper.
At this point, both sellers and buyers must make an appointment in the sub-registrar’s office and carry out the property registration. Note that two witnesses must be present at the time of registration.
You must keep these documents in order while registering for a sale deed:
Here are the things to bear in mind before executing a sale deed:
It would help if you also had a well-rounded idea regarding the significant differences between a sale deed and a sale agreement:
|Sale Deed||Sale Agreement|
|A sale deed is needed for the immediate transfer of property ownership.||A sale agreement is required for the future sale of a property.|
|The Registration Act mandates registration of a sale deed.||Depending on the state rules, you may or may not have to register for a sale agreement.|
|A sale deed is a document that has already been executed. Here, property rights are given to the new owner.||On the other hand, a sale agreement is going to be executed in future. Here, property right is given only to the person who is going to buy the property in future.|
|A sale deed incorporates information of both parties, property, payment details, indemnity details, etc.||A sale agreement holds the terms and conditions depending on which property will be sold.|
|Under sale deed, the buyer is held responsible for any kind of risks associated with the property.||In a sale agreement, the seller is liable for any discrepancy in the property transaction.|
As per the Registration Act of 1908, a sale deed holds utmost importance in legalising any property transaction. This legally binding document facilitates the sale and transfer of property by listing complete details of the pricing, terms and conditions of the property that is being transferred.
Ans: If you have misplaced your sale deed, you need to visit the nearest police station and file an FIR, mentioning the details of the papers. However, owners must keep a copy of the FIR for future reference.
Ans: No, a property cannot be sold if the property owner does not own an original sale deed. There is considerable risk associated with selling a property without a sale deed.
Ans: You can locate the sale deed number on the top right corner of the agreement. It is printed in the following format: document number/ year/ initials of Sub-Registrar Office.
Ans: Yes, you can challenge a registered sale deed when required. However, you must be well acquainted with certain clauses and contact a property advocate to take assistance before doing so.
Ans: Yes, we need to have a sale deed while applying for a home loan. It is a crucial document that we need to submit to the lender that ensures the property mortgaged is free of legal disputes.
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