THE SALE DEED

SALE DEED

The Sale Deed is the most important document in the process of Transfer of Property. It is essential that a Sale Deed is drafted very carefully and with utmost precision. An error in this Deed may even fail to transfer proper title to the property from the Seller to the Buyer.

Only the UDS is registered in the case of Apartments

In the case of a purchase of an Apartment, only the UDS (Undivided Share of Land) is registered till now. The Builders Agreement, though may not be registered, is normally treated as the Sale Deed for the Apartment. It should contain all the details about the flat and the facilities offered. (The position has since changed, and Registration of Construction Agreement is made compulsory now)
 
When the property is a finished one or a resale, the entire property should be registered. 

Sale Agreement

A Sale Deed is executed both by the Buyer and Seller of a property. It’s preceded by a Sale Agreement.

This Sale Agreement forms the basis for the drafting of the Sale Deed. Though a Sale Agreement is not an essential prerequisite, it’s always advisable to reduce the understanding arrived at between the Seller and the Buyer at the initial stages, on Price, Time to Complete the Registration etc ,in writing. This is the Sale Agreement.

Sale Agreement can be in a Stamp Paper of Rs 20/- 

Those who go for a Housing Loan will have to submit this Agreement along with the Housing Loan Application, to enable the Loan Sanctioning Authorities to decide the Loan Amount and Sanction the Application.

Sale Deed

This Deed needs to be executed on stamp paper in accordance with the Stamp Act applicable. 

 It must clearly mention,

1) The names of the parties-Seller and Buyer, their age, father’s/Husband’s name, and address.
 
2) The description of the property sold. The address of the property, village name, name of Sub- Registrar office, a description of the property – whether land, flat, independent house, floor etc, the  extent of the land in sqft /cents as the case may be, are to be clearly mentioned. The exact location of the property with a description of the surrounding properties, needs to be mentioned. All these should be stated in a schedule of the Sale Deed, along with the relevant map and drawings to make the identification easier
 
3) The Price at which the property is being sold, the Mode of payment of the Sale Consideration,  the terms of payment, advance paid, and amount paid on signing of the Agreement, if any etc.
 
4) The time and stage when the property will be transferred to the Buyer. Generally it is on full payment of the Sale Consideration.
 
5)The Seller needs to confirm that the property is NOT Encumbered. The Buyer needs to ensure the Seller has cleared all pending Encumbrances on the property before the title is transferred to him. The Deed should incorporate a clause mentioning that the Seller will get all the encumbrances cleared before the transfer 

Once finalised, the Sale Deed needs to be executed both by the Buyer and the Seller or their duly Authorised Power of Attorney holder, and has to be registered at the Sub-registrar’s Office under whose jurisdiction the village/property falls.  

The Names, Schedule of Property, and all essential details should be checked, and re-checked, before the document is registered. If any mistake is detected at a later stage, it can be rectified only through a Rectification Document. For this, the Seller must be available and willing to do the needful.

By John das -ChennaiRealties

 

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