What is a Sale Deed?
A sale deed is a legal document that initiates property ownership. This is the final transaction from seller to buyer in real estate. The registration of the sale deed is a crucial one as it is legally recorded in government records.
It acts as conclusive evidence in any property sale transaction, providing legal security and clarity for the ownership.
Importance of Sale Deed:
Legal Validity
A sales deed is a legal transfer of ownership. It serves as a property ownership as the document is registered under the Registration Act of 1908. The two crucial things for the validation are
Legal Professional – the buyer consults the advocate (the legal professional) as to whether the seller has the authority to sell the property.
Stamp Duty – As per the Stamp Duty Act of a state, the sale deed is made on non-judicial stamp paper.
Proof of Ownership:
The sale deed transfers ownership from the seller to the buyer by following legal rules and regulations. This documentation provides the legal right to own a particular asset or property of an individual.
Property Title
The title of the property is transferred from the seller to the buyer once the sale deed has been registered. It acts as a transparent document as it contains clear information about the past owner, present owner, and legal pieces of information.
Avoiding Frauds
It is tough for fraudsters to do illegal activities if there is a proper sale deed. Make sure that your property is bound by legal rules and regulations to avoid any illegal transaction.
Access to Public Records
The sale deed is a private document that is registered under legal rules and regulations. As a result, it enters into the category of public records, which adds security and transparency to the transactions.
Key Eelements of a Sale Deed:
The various key elements involved in the sale deed documentation are
Parties Involved
The seller and the buyer are the two parties involved in the sale deed. It includes the details of their name, address, identification proof, and signature of the seller and the buyer.
Property Description
This property description helps to have clarity of information about the sales deed. It includes
- Name of the Seller & Buyer
- Location of the property
- Type of the property
- Boundaries for the property
Sale Consideration
It explains the total amount that a buyer accepts to buy the property from the seller. It includes
- Mode of transaction.
- Financial agreement.
- Transparency, and
- Tax implication.
Rights and Liabilities
Both the seller and the buyer are included in the legal rights and liabilities. Without any delay, the buyer should transfer the amount agreed to pay. At the same time, if there is any default on the seller’s side, the seller is responsible to return the amount paid by the buyer.
Encumbrances
It refers to the claim made by someone who is not the current property owner. This is the burden of legal liability and property. Common issues such as mortgages, liens, or encroachment will take place.
Documents Needed for Sale Deed Registration
The various documents involved in the sale deed are crucial because they establish the ownership and title of the land.
Sale Agreement
It is an agreement between the buyer and seller during the sale of a certain property that is governed by legal norms and regulations. The agreement concerns the transfer of ownership between the seller and the buyer.
Power of Attorney
It is a legal document that the owner gives the authority to someone to take and make decisions on their property.
Aadhaar Card
Aadhaar card is required for the primary verifications done at the time of registration of the sales deed in India.
PAN Card
As this card contains 10 unique digits, it is essential for the financial transactions that take place during the sale deed.
Passport-Size Photographs
A minimum of two passport-size photographs of the seller and buyer is enough for the evidence to file the documentation.
Property Tax Receipts
To know the current details of the property’s tax and whether everything is up-to-date, copies of tax receipts are needed for verification.
Bank Passbook or Statement
To check the financial ability of the buyer, a copy of the bank statement is required for the seller.
NOC from Society
A request letter is submitted to the society, particularly in housing projects, and the property owner must obtain (NOC) No Objection Certificate from various legal authorities. The application cost is around Rs.100, which is crucial to avoid conflict in the future. Even for property transfer owner must obtain NOC
Allotment Letter
Before the completion of the final sale deed process, this letter serves as the initial ownership for the buyer. In the year of 1996, the Central Board of Direct Taxes clarified that the allotment letter would be issued on the date of acquisition of the property.
In conclusion, The only difference between a Conveyance deed and a sale deed is the type of ownership transfer, A sale deed provides valuable legal documents while purchasing or selling a property. the sale deed provides safety and security for the transaction from the seller to the buyer. By abiding and providing the necessary paperwork, further conflicts are avoided.
FAQs
A sale deed is a legal document that initiates property ownership from the seller to the buyer whereas in the registration deed, the buyer needs to pay the registration fee and stamp duty to execute the sale deed. The consequences of an Unregistered Sale Deed can be a huge loss
Yes, it is a legal document that follows the rules and regulations of the Government while transforming the ownership from the seller to the buyer.
No, as the original sale deed outlines the property’s title and other crucial information, you cannot sell your property without it. It is one of the legal documents needed for real estate transactions, among other paperwork.