It’s a dream come true when you are set to own a property. It is however an investment of a significant amount of your earnings and you will want to go about the process the right way. The legalities of owning a property are plenty. When you are done with obtaining the khata, followed by the agreement of sale, your next step will be the sale deed. It is sometimes known as the conveyance deed too. There are several intricacies to this document that you have to be aware of to prevent being taken in for a ride.
This deed is created and governed under the Registration Act is an essential document for both the buyer and the seller, who are in the document referred to as transferor and transferee. The purchase/sale of the property is legalised only on signing of this document by both parties involved. This signing is done only after stipulations in the sale agreement have all been adhered to.
The buyer and the seller create this document on a non-judicial stamp paper. The value of the stamp paper will vary in different States and is based on the Stamp Act. Only after everything is agreed on in the Sale Agreement will the two parties come forward to sign the Sale Deed. This process is completed when two witnesses sign the document as well, with all their details included.
The sale deed will comprise the basic details of the buyer and seller and all their contact details. You will also have the details of the property up for sale including the identification number, its exact coordinates, the address, the area of the property as well as all the details of construction if it is a built-up space.
Your sale deed will also carry a certification from the owner of the property that it is free from any liabilities and lien. If. however, there is a loan against it, then it will have to be settled by the seller before the sale deed can be executed. This is why it is necessary for the buyer to have these details checked out at the local registrar’s office.
Also included in the draft sale deed are the details of the payment that will be exchanged on the sale of the property, the details of an advance amount, the dates on when the payment is made, the mode of payment, the duration for clearing of the balance and all the details of bank transactions related to it. The sale deed will also have to carry the details receipts issued by the seller for payment received. The sale deed also has to carry the date on which the property is to be handed over in terms of documentation and then actual possession of the space. All indemnity provisions will also have to be listed out in relation to the buyer and the seller.
The registration of the sale deed has to be done at the sub-registrar’s office of the particular jurisdiction. Besides the seller and the buyer, the related witnesses will also have to be present. In case one of the two parties is unable to be present, they can appoint a representative with a power of attorney to execute the deed on their behalf.
All of the original documents in relation to the sale will have to be produced in a four-month period from the time of execution of the sale deed. Should this not be possible, the registrar has the ability to grant an extra four months to produce it. There is however a chance that a penalty amount of up to 10 times that of the registration fee will be charged.
The best working situation would be for the buyer to pay up the stamp duty and the registration charges and the seller to get all the payments due such as property tax, cess, amenities etc. done. With this taken care of, you are a few steps away from being the owner of your own home.
