When it comes to buying a house, the deed of sale is one of the most important documents a person can possess. It validates you as the owner of the property by acting as a legal proof of ownership.
What’s a sale deed?
This is a document that lists in clear detail the price, terms and conditions upon which the two parties reached an agreement for the sale of property.
The sale deed of land is drafted on a non-judicial stamp paper of fixed value prescribed by the state government, as every state has a different value of stamp paper when it comes to drafting sale deeds.
Who pays?
While it is the buyer, who pays for the stamp duty and the registration charges, the seller, on his part, ensures that all the dues regarding the property, including the loan taken for the property, the property tax, water, and electricity bills are cleared before signing the final sale deed agreement.
It's mandatory for the sale deed draft to contain certain details, before being legalised. These include:
Type of deed : Besides selling a property, people also tend to mortgage or lease their immovable assets, so the agreement has to mention if it's a Deed of Sale or Deed of Mortgage.
Details of the parties involved : The sale deed agreement includes the names, residential addresses, and age details of the parties involved, with the parties being referred to as the seller and buyer or lessee and lessor in the agreement.
Description of the property: From the property's location to relevant details like the number of rooms, the number of balconies, plot area and construction area among other things are mentioned in the deed of sale.
Sale agreement : Agreed upon and signed by both the entities, a sale agreement precedes the property deed. The agreement states that both parties agree to buy and sell the said property besides mentioning the details of transaction like the date, advance paid, the amount due and the mode of payment.
Transfer of title : Once the sale deed is signed by both the parties, the buyer gets the title of being the property’s legal owner with complete rights to the property.
What happens next?
After the signing of the sale deed, you then proceed with the process of registration, with the deed of sale registering the sale of the said property under the Registration Act, 1908. The parties involved present themselves at the local sub-registrar's office with the witnesses and the documents required and sign the property deed. Once the agreement's been signed, the certified copy of the registered property with the name of the buyer is available at the sub-registrar's office.
However, at times when one needs to transfer the property to a loved one, one can use a quit claim deed to transfer ownership interest. With the complete names of the transferor and the transferee mentioned properly on the quit claim deed, it clears up any title problems regarding the property.
So, when it comes to signing a deed, it’s best to not rush into things. Make it a point to scrutinise everything in detail as once a legal document has been signed, there’s no alternative but to take whatever has been written as the final word on any conflicts regarding the property.
This article is contributed by RoofandFloor , part of KSL Digital Ventures Pvt. Ltd., from The Hindu Group
