Last Updated on 1 year by ChennaiRealties
The SALE DEED
The Sale Deed is the most important document in transferring a 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 buying an Apartment, till now, registration of UDS (Undivided Share of Land) is enough. The Builders Agreement is the Sale Deed for the Apartment. It should contain all the details about the flat and the facilities offered. (The position has since changed. Now, Registration of Construction Agreement is made compulsory now) When the property is a finished one or a resale, registration of the entire property is a must. Not the UDS alone.
Both Buyer and Seller execute the Sale Deed. The Sale Agreement precedes the Sale Deed. This Sale Agreement forms the basis for the drafting of the Sale Deed. The Sale Agreement is not an essential prerequisite. But, it’s always advisable to reduce the understanding, in writing. The oral agreement on Price, Timing, Schedule etc find a place in this 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 to the Loan Providers. This will enable the Loan Sanctioning Authorities to decide the Loan Amount.
Execution of the Sale Deed is on a stamp paper under the Stamp Act applicable.
The Sale Deed 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,
3)the addresses of the property, village name, name of Sub- Registrar office,
4)a description of the property – whether land, flat, independent house, floor etc,
5) the extent of the land in sqft /cents as the case may be
6)the price at which the property is being sold and the Schedule of Payment.
7) the time and stage when the property will be transferred to the Buyer. Generally, it is on full payment of the Sale Consideration.
8)the Seller needs to confirm that the property is NOT Encumbered. The Seller should clear all pending Encumbrances on the property. This is before the Transfer of Property to him. The Deed should incorporate a clause to this effect.
Also, the Sale Deed should contain at the end, a schedule of the property. This Schedule mentions the exact location and description of properties on all sides.
Once finalised, both Buyer and the Seller or the Power of Attorney should execute the Sale Deed. The Registration of the Sale Deed will be at the sub-registrar’s office. This SRO is the one under whose jurisdiction the village/property falls. Check all the details before registering. If any mistake occurs in the Sale Deed, it can be rectified only through a Rectification Deed. For this, the Seller must be available and willing to do the needed. After a considerable lapse of time, it will be difficult to get this rectification done.