Table of Contents
- What is a Sale Deed?
- What are the Details mentioned in a Sale Deed?
- Sale Deed Registration
- Clauses Mentioned in a Property Sale Deed
- Documents Required For Saled Deed Registration
- How Can You Get A Cerified Copy of Sale Deed?
- How to get a certified copy of Sale Deed online?
- What is a Sale Agreement?
- Details Mentioned in the Sale Agreement
- Difference between Sale Agreement and Sale Deed
- Format of Sale Agreement
- Faq's
A Sale Deed is a crucial legal document that acts as proof that the ownership of a property has been transferred from the seller to the buyer. Without the sale deed, the property purchase process is considered incomplete. As a seller or a prospective buyer, it is important to understand the various components, format, and significance of this important document to ensure a smooth and legally binding property sale.
In this article, we will take a detailed look at Sale Deed Registration, the documents required for a Sale Deed, how it is different from a Sale Agreement, and more. If you are looking to buy a property, then this article will guide you through every aspect of the Sales Deed process.
What is a Sale Deed?
A Sale Deed is a legally binding document that safeguards the rights of both parties involved in a property transaction. It serves as proof of property ownership transfer and outlines the rights and responsibilities of the buyer and seller. Without a registered Sale Deed, the buyer cannot claim rightful ownership of the property under the law.
What are the Details mentioned in a Sale Deed?
When drafting a Sale Deed, several key components must be included to make the document legally valid and comprehensive:
Details of Both Parties: The Sale Deed should contain the names, contact numbers, and ages of both the buyer and the seller.
Property Details: This section should encompass the complete address, area, dimensions, and construction details of the property.
Indemnity Clause: This clause ensures that the seller will compensate the buyer for any damages arising from disputes related to property ownership.
Property Value: The Sale Deed should specify the sale amount, payment breakdown, stamp duty, registration fees, and payment mode.
Date of Delivery: It is crucial to mention the date of property possession transfer to the buyer.
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Sale Deed Registration
According to the Indian Registration Act of 1908, any property transaction exceeding Rs 100 in value must be registered through a Sale Deed. Any property purchased under an agreement of sale without it being followed by a proper sale deed is considered invalid. Therefore to ascertain ownership of a property an agreement of sale needs to be followed by a sale deed.
There is, however, an exception to this rule under Section 53A of the Transfer of Property Act. Section 53 A protects a buyer who has a contract to buy a property and has already started living in or using the property. This section prevents the seller from going back on the deal and taking the property back, except as agreed in the contract. It applies when there is a valid contract, the buyer is in possession and is ready to fulfill their part of the deal. However, this does not give property ownership rights to the buyer, it remains with the seller. Therefore, an immovable property buyer does not acquire any rights, titles, or interests without a duly stamped and registered sale deed.
A Sale Deed must be registered to establish a legal ownership transfer and protect the interest of the buyer. The registration process involves paying stamp duty and registration charges based on the value of the property.
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Clauses Mentioned in a Property Sale Deed
In a property sale agreement, there are several vital clauses that play a crucial role in outlining the terms and conditions of the transaction.
These include:
Right to Abort the Deal and Indemnity Clause
This clause allows the buyer to abort the deal without penalty if the property documents provided by the seller are legally invalid. An indemnity clause may also be included, where the seller assures that there are no encumbrances on the property, ensuring a clear title. If the owner of a property has the necessary documents to prove their ownership and there are no financial liabilities or third-party claims against the property, then the title is considered clear.
Penalty Clause
This clause stipulates that the earnest money paid by the buyer is non-refundable if they fail to pay the remaining amount on time. Similarly, a penalty clause can be included for the seller if they back out of the deal.
Outstanding Dues Clause
The seller must clear all outstanding dues on the property, such as electricity charges, property tax, or maintenance fees, before selling the property. It is essential to provide receipts for these payments.
These clauses are fundamental in a property sale agreement as they protect the interests of both the buyer and the seller, ensuring a transparent and legally binding transaction process.
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Documents Required For Saled Deed Registration
Chain of Title: Documents establishing the history of ownership of the property, including previous sale deeds, conveyance deeds, gift deeds, etc.
Registered Agreement to Sell: An agreement between the seller and the buyer outlining the terms and conditions of the sale before the final sale deed is executed.
Sales Deed Document: The main legal document transferring ownership of the property from the seller to the buyer, registered with the appropriate authority.
Proof of Stamp Duty Payment: Evidence of payment of stamp duty is also required for the execution of the sale deed.
Proof of Registration Fee Payment: Evidence of payment of the registration fee required for registering the sale deed with the appropriate authority.
Proof of TDS Payment: If applicable, proof of payment of Tax Deducted at Source (TDS) on the property transaction.
Approved Building Plan: Approval from the relevant authority confirming that the building plan complies with local regulations and is approved for construction.
Loan Documents: If the property is financed through a loan, documents related to the loan agreement, mortgage, and clearance of dues may be required.
NOC from the Electricity Department: A no-objection certificate from the electricity department confirming that there are no outstanding dues or objections related to electrical connections.
NOC from Pollution Control Board: If applicable, a certificate from the pollution control board confirming compliance with environmental regulations.
NOC from Water Works Department: A certificate from the water department confirming that there are no outstanding dues or objections related to water connections.
Share Certificate: If the property is part of a cooperative society, a share certificate from the society may be required.
No-objection Certificate from RWA: A certificate from the Residents Welfare Association (RWA) confirming no objections to the sale of the property.
Identity Proof of Buyer, Seller, and Witnesses: Documents such as Aadhar card, passport, PAN card, or driving license for establishing the identity of the parties involved in the transaction.
Address Proof of Buyer, Seller, and Witnesses: Documents such as utility bills, Aadhar card, or voter ID card for establishing the residential address of the parties involved in the transaction.
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How Can You Get A Cerified Copy of Sale Deed?
The sub-registrar office is responsible for registering properties and maintaining records for eternity.
To obtain a certified copy of the sale deed, one must contact the sub-registrar of the area.
How to get a certified copy of Sale Deed online?
To obtain a certified copy of your sale deed in your state, you can follow these steps:
Step 1: Go to the official website of the land registry department or the relevant government authority responsible for property registration in your state.
Step 2: Look for the section on property documents or sale deeds on the homepage or in the menu.
Step 3: Search for the option to download certified copies of property documents. This might be labeled as a Certified Copy or something similar.
Step 4: You will likely need to provide specific details about the property, such as its address, survey number, or property identification number (PID). Additionally, you may need to input the name of the owner and the date of the transaction.
Step 5: There may be a fee associated with downloading a certified copy of the sale deed. Follow the instructions to make the payment online through the secure payment portal.
Step 6: After completing the payment, you should receive the certified copy of your sale deed in PDF format. This may be available for immediate download from the website or sent to you via email.
What is a Sale Agreement?
A sale agreement, also known as an agreement to sell or a purchase agreement, is a legal contract between a buyer and a seller that outlines the terms and conditions of a property sale transaction. This agreement is typically entered into before the execution of the final sale deed. It serves as a preliminary step towards the transfer of ownership of the property and provides clarity on various aspects of the transaction.
Details Mentioned in the Sale Agreement
Below listed are the details mentioned in a sale agreement:
Personal Details: Full names, residential addresses, and ages of the parties involved in the agreement.
Property Description: Clear description of the goods or property being sold by the seller, including any relevant details or specifications.
Delivery Method and Timeframe: Specification of how and when the goods or property will be delivered to the purchaser.
Payment Terms: Detailed terms regarding the payment, including the mode of payment, the total amount, installment details (if applicable), and the timeline for completing the payment.
Indemnity Clause: Clause outlining the responsibility of the seller to compensate the purchaser for any losses or expenses incurred due to breaches of the agreement.
Penalty Clause: Explanation of penalties or consequences in case of default by either party, detailing the repercussions for non-compliance with the agreement terms.
Right to Call off the Deal: Provision stating the conditions under which either party reserves the right to terminate or cancel the agreement.
General Clauses: Inclusion of standard clauses covering termination procedures, applicable laws governing the agreement, dispute resolution mechanisms (such as arbitration), and any other relevant terms.
Date of Agreement: Clear indication of the date when the agreement is signed by all parties involved
Difference between Sale Agreement and Sale Deed
Sale Deed | Sale Agreement |
Completes the document transferring ownership. | Preliminary contract which outlines the terms of sale. |
Legally binding upon execution and registration. | Legally binding once signed by parties. |
Executed after negotiations, typically at the time of property transfer. | Executed before the final property transfer. |
Conveys ownership of the property to the buyer. | Outlines terms of sale, not transferring ownership yet. |
Must be registered with the appropriate authority. | Not mandatory to register, but can be if desired. |
Contains details of the property, parties involved, sale consideration, and signatures. | Details terms and conditions of sale, payment schedule, and obligations of both parties. |
Evidence of property ownership after registration. | Basis for future sale deed, if all conditions are met. |
Enforceable in a court of law as evidence of ownership. | Enforceable as a contract if one party defaults. |
Effectuates the transfer of title from seller to buyer. | Sets the stage for future transfer of title upon fulfillment of conditions. |
The Seller bears the risk of ownership until transfer. | Buyer may bear risks until formal transfer of title. |
Typically executed at the time of property sale. | Executed before finalisation of the property sale. |
Format of Sale Agreement
DRAFT OF AGREEMENT FOR SALE
THIS AGREEMENT FOR SALE is made and executed on this the____________ day _____________ of ___________, 200-
BETWEEN
Mr. ____________s/o. ____________ aged_________________ years residing at _____________Hereinafter called The SELLER (which expression shall mean and include her legal heirs, successors, successors-in-interest, executors, administrators, legal representatives, attorneys and assigns) of ONE PART.
AND
Mr. ______________ s /o __________aged________ years residing at__________ ___Hereinafter referred as The PURCHASER (represented by his power of attorney) which expression shall mean and include his heirs, successors, executors, administrators, legal representatives, attorneys and assigns of the OTHER PART.
WHEREAS THE SELLER is the absolute owner in possession and enjoyment of the more fully described in the schedule hereunder and hereafter called the "SCHEDULE PROPERTY.
WHEREAS the property more fully described in the schedule hereunder is the self-acquired property of the SELLER who purchased the same from Mr._____________ in and by sale deed dated _____________ and registered as Doct No._________of Book 1 Volume No______________Page No_____to_________, registered on and filed on the file of the Sub-Registrar,
WHEREAS the SELLER is the absolute owner of the property and he has been enjoying the same with absolute right and he has clear and marketable title to the Schedule Property
WHEREAS the SELLER being in need of funds for the purpose of ________________ has decided to sell the property more fully described in the Schedule hereunder and the PURCHASER has offered to purchase the same..
WHEREAS the SELLER offered to sell and transfer the schedule property to the PURCHASER for a sale consideration of Rs.___________(Rupees___________ only) and the PURCHASER herein has agreed to purchase the same for the aforesaid consideration on the following terms and conditions:
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
The Sale consideration of the Schedule Property is fixed at Rs. __________ (Rupees________ only).
The PURCHASER has paid a sum of___________(Rupees_________ only) by cash/ cheque /D.D. bearing No _________ drawn on ___________ dated________ as advance, the receipt of which sum the SELLER hereby acknowledges.
The balance payment of Rs._____________(Rupees _________ only) will be paid by the PURCHASER to the SELLER at the time of execution of the absolute Sale Deed and thus completing the Sale transaction.
The parties herein covenant to complete the Sale transaction and to execute the Absolute Sale Deed by the end of
The SELLER confirms with the PURCHASER that he/she has not entered into any agreement for sale, mortgage or exchange whatsoever with any other person relating to the Schedule Property of this Agreement.
The SELLER hereby assures the PURCHASER and he/she has absolute power to convey the same and there are no encumbrances, liens, charges, Government dues, attachments, acquisition, or requisition, proceedings etc.
The SELLER agrees to put the PURCHASER in absolute and vacant possession of the schedule property after executing the sale deed and registering the same in the jurisdictional Sub-Registrar office.
The SELLER covenants with the PURCHASER that he/she shall not do any act, deed or thing creating any charge, lien or encumbrance in respect of the schedule property during the subsistence of this Agreement.
The SELLER has specifically agreed and covenants with the PURCHASER that he/she shall do all acts, deeds and things which are necessary and requisite to convey absolute and marketable title in respect of the schedule property in favour of the PURCHASER or his nominee.
IT IS AGREED between the parties that all expenses towards Stamp Duty and Registration charges shall be borne by the PURCHASER only.
The PURCHASER shall have the right to nominate or assign his right under this agreement to any person / persons of his choice and the SELLER shall execute the Sale Deed as per terms and conditions of this Agreement in favour of the PURCHASER or his nominee or assignee.
The SELLER has agreed to get consent deed duly executed to this Sale transaction from his wife/her husband, sons and daughters on or before date of registration of Sale Deed and assured that they all join to execute sale deed in favour of the purchaser.
It is hereby expressly provided and agreed by the parties here to that both parties are entitled to enforce specific performance of the agreement against each other in case of breach of any conditions mentioned in this Agreement.
The original of the AGREEMENT signed by both the parties shall be with the PURCHASER and copy of the same similarly signed shall be with the SELLER.
SCHEDULE
IN WITNESS WHEREOF the SELLER and the PURCHASER have signed this
Agreement of Sale on the day month and year herein above mentioned in the presence of the witnesses:
WITNESSES:
1.
2.
Signed by SELLER_____________
In presence of
Signed by PURCHASER______________
In presence of
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