Are you purchasing home or some property?
The essential document for purchasing the immovable property is execution of sale deed. So, here in this article we are going to through some light on the aspects related to execution of sale deed
What is a Sale Deed?
The sale deed is the legal document executed subsequent to the execution and compliance of terms and conditions of the sale agreement between the buyer and the seller.
It acts as an evidence for sale in favor of the buyer and transfer of the property from buyer to seller
After the ownership gets transferred to buyer, he can further sale the property
POINTS PURCHASER SHOULD ENSURE BEFORE PURCHASE OF PROPERTY
1) The purchaser should check the title of the seller before the execution of the sale deed
2) The purchaser should verify the encumbrance status on the property
3) Statutory payments like cess, property tax, water charges, electricity charges, society etc must have been paid by the seller before the execution of the sale deed.
4) Requisite clearances, approvals and permissions must have been obtained by seller before transferring and selling the property.
HOW THE SALE DEED IS PREPARED?
There are basic steps involved in preparation of sale deed:
§ The deed is executed by all the parties concerned
§ All pages of the deed are to be signed
§ The deed should be witnessed by at least two witnesses giving their full names, signatures and addresses
The sale deed of immovable property needs compulsory registration at the jurisdictional sub registrar office. Registration of sale deed is governed under Registration Act, 1908
CLAUSES OF SALE DEED
Sale Deed is the documents that are created based on the needs of buyer and seller. Below are the key points elaborated as how to draft the document for transfer of the ownership of a property in buyer’s name.
1. Description of the parties:
Sale deed must start with the details of the parties which includes full name, addresses, age and occupation if possible
2. Date and place:
The date and place of execution of sale deed by seller and buyer should be mentioned in the deed
3. Description of the property:
The important aspect of the sale deed is the details about the property being sold like the address of property, construction details including roofing, number of rooms, parking facilities, boundary details, etc along with a schedule of the property which defines exact location of the property.
4. Sale consideration:
The consideration amount agreed between the buyer and seller in purchasing the property must be specified in the sale deed.
5. Passing of the title to property:
Execution of sale is necessary for transferring the title to the property to buyer. Therefore, the date upto which the property’s ownership will be transferred should be provided in the deed.
6. Indemnity clause:
Being a buyer make sure that there is a indemnity clause in the sale deed through which the seller will be only responsible for any hindrances in the title to the property. So, the person buying the property should ensure that all the taxes in respect of property and encumbrance status should be checked before purchasing.
7. Execution:
After incorporating all the relevant points related to sale deed, the next step is to sign all the pages by buyer and seller
8. Delivery of property:
In order to avoid the confusion in future, the detail regarding the property related documents and how the possession will be handed over to the buyer must be summarized
9. Witness:
A valid sale deed should be attested by two witnesses each of seller’s and of buyer’s.
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