A sale deed is a legal document that proves that a property has been transferred from the seller to the buyer. A sale deed acts as the main legal document, confirming the sale and the transfer of ownership of property from the seller to the buyer. The registration of a sale deed concludes the property purchase process.WhatsApp
A sale deed is a legal document that proves that a property has been transferred from the seller to the buyer. A sale deed acts as the main legal document, confirming the sale and the transfer of ownership of property from the seller to the buyer. The registration of a sale deed concludes the property purchase process.
- : Details of the buyers and sellers (name, age and addresses).
- : Property description (total area, details of construction, the exact address and surroundings).
- : Sale amount including advance payment paid, as well as the mode of payment.
- : Time frame in which the property title will be actually passed on to the buyer.
- : Actual date of delivery of possession.
- : Indemnity clause (The seller promises to pay the buyer for any damages in case of disputes with regard to the ownership, resulting in monetary losses to the buyer).
Cancellation of a sale deed
A sale deed can be cancelled if the seller and the buyer have an agreement to this effect. Sections 31 to 33 of the Specific Relief Act, 1963, specify the conditions under which a sale deed can be cancelled. These conditions include:
- : The deed should have been registered under the Indian Registration Act, 1908.
- : The individual feels that the deed is voidable or has a doubt that such a deed will cause him injury, if left outstanding.
- Legal ownership: A sale deed establishes the legal ownership of the property and provides a clear title to the buyer. This helps to avoid any disputes or challenges to ownership in the future.
- Evidence of transaction: A sale deed serves as evidence of the transaction between the buyer and the seller. It contains details about the property, the parties involved, and the terms of the sale, which can be used in legal disputes or challenges related to the property.
- Protection of rights: A sale deed protects the rights of the buyer over the property. It outlines the terms of the sale, such as the sale price and payment terms, and establishes the legal ownership of the buyer over the property.
- Tax benefits: A sale deed is subject to stamp duty, which is a tax on the transaction value of the property. The stamp duty paid on the sale deed can be used to claim tax benefits, such as a deduction from taxable income.
- Financing: A sale deed is required for financing options such as a home loan. Banks and financial institutions require a sale deed as proof of ownership before providing a loan.
- Resale value: A sale deed can increase the resale value of the property. Prospective buyers prefer to purchase properties with clear ownership titles and a properly executed sale deed can provide the necessary documentation for this.
Registration Process of a sale deed
- Consideration and arrears due: The buyer should pay the total consideration amount before the sale deed enrollment. Care to be taken in clearing all the arrears due, including prior loans, house tax, property and society dues, etc.
- Ascertainment of stamp duty: The stamp duty for the particular property mentioned in the sale transaction is imposed on the circle rate or actual rate, whichever is higher. A circle Rate is a minimum price fixed by government authorities designated for a property in a locality. This is the minimum rate below which property transactions cannot be registered. The circle rate is the price at which the transfer or sale of properties can be registered. Stamp duty varies from state to state and changes based on sole and joint ownership, and other charges are also to be paid along with stamp duty.
- Payment of stamp duty and stamp paper: Two methods for obtaining the stamp paper include E-Stamping and Non-judicial Stamp Paper. In the E-Stamping option, there are two options to obtain the stamp paper. One can pay stamp duty online and approach the nearest SHCIL branch to get the printout of the e-stamp certificate. Each stamp paper has a unique identification number that comes in handy for reference. Another approach is to go to the nearest SHCIL or bank-authorised collection centres and obtain stamp paper by paying stamp duty and providing details. The Non-Judicial Stamp Paper can be purchased from the authorised stamp vendor in your locality, and now you can print the sale deed on the stamp paper.
- Sale deed draft: The drafting of the sale deed should involve all the relevant and necessary details along with terms and conditions of sale, payment details, buyer and seller details, etc. If you previously obtained the e-stamp certificate, take the printout of the sale deed on plain paper and attach it with the e-stamp.
- Sale Deed Enrollment and Collection: For the enrollment of the sale deed, one must take an appointment from the nearest sub-registrar either manually or online, but for only states that provide the E-Stamping option. The buyer and seller and two witnesses should be present on the appointment date. In the sale deed enrollment, the signature and thumbprints of the buyer and seller play an essential role since the enrollment is only legally complete when all the parties sign duly. The registered original sale deed can be collected after the prescribed number of days.
- : Duplicate copy of the Sale Deed that needs to be registered.
- : Two passport size photographs of the buyer and seller.
- : ID proof such as Aadhaar card, Voter’s ID card of all the parties.
- : Certified true copies of Certificate of Incorporation in case of a company.
- : Copy of the property register card.
- : To indicate the year of construction of the property, copy of the municipal tax bill.
- : PAN Card of both seller and the buyer.
- : Stamp paper or e-stamp and registration fees receipt.
Why approach LAWYASA?
- Expertise: Lawyasa has a team of experienced lawyers who specialize in various fields of law, including family law, property law, and corporate law. We can provide you with expert legal advice and guidance on your specific legal issue.
- Convenience: Lawyasa is an online legal platform, which means that you can access our services from anywhere, at any time. You can consult with our lawyers, get legal documents prepared, and even file a case in court, all from the comfort of your own home.
- Cost-effective: Lawyasa offers cost-effective legal services, which can save you a lot of money compared to traditional law firms. We offer transparent pricing, so you know exactly how much you will be paying for our services upfront.
- Customised solutions: Lawyasa provides customised legal solutions tailored to your specific needs. We take the time to understand your legal issue and provide you with the best possible legal advice and representation.
- Customer support: Lawyasa provides excellent customer support. Our team is available to assist you with any questions or concerns you may have, and we keep you informed throughout the entire legal process.
How can LAWYASA assist?
Lawyasa can assist you in drafting and delivering a sale deed in India through the following steps:
- Consultation: You can contact Lawyasa and discuss your requirements and the details of the sale with a lawyer. The lawyer will guide you through the process and answer any questions you may have.
- Drafting: Once the details of the sale have been finalized, a lawyer from Lawyasa can draft a sale deed that is in accordance with the Indian laws and regulations. The draft will be shared with you for review and approval.
- Execution: Once the sale deed is finalized and approved, Lawyasa can assist in the execution of the sale deed, ensuring that all the legal formalities are completed. This includes getting the sale deed signed by both parties in the presence of witnesses, as required by law.
- Registration: Lawyasa can also assist in registering the sale deed with the relevant authority, such as the Sub-Registrar of Assurances, as required by law. This includes paying the necessary stamp duty and registration fees.
- Delivery: Once the sale deed is executed and registered, Lawyasa can assist in delivering the sale deed to the buyer. The sale deed can be delivered through registered post, courier, or any other means as agreed between the parties.
Frequently Asked Questions
Q: What is the difference between a sale deed and a conveyance deed?
Q: Can a sale deed be cancelled or revoked after it has been registered?
Q: What is the time limit for registering a sale deed?
Q: What happens if a sale deed is not registered?
Q: Can a sale deed be challenged in court?
Q: What are the stamp duty and registration fees for a sale deed?
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