Buying and selling a property is not a simple process. It involves a lot of paperwork and can be quite confusing, especially for first-time buyers or sellers. However, the complete process is as important as the property itself. When someone buys or sells a property, the document that records the transaction is called a sale deed. This document is essential, as it legally transfers property ownership from one person to another.
In this blog post, we will discuss the sale deed’s meaning and its importance, as well as the rights and responsibilities of both buyers and sellers. Stay tuned for more!
An Overview of the Sale Deed
A sale deed is a written agreement that legally transfers ownership of the property from the seller to the buyer. This document is also commonly referred to as a “deed of sale.” The terms of the sale, including the purchase price, are typically outlined in a sales contract or an offer to purchase prior to executing the sale deed. The sale deed must be signed by both parties and registered to be valid.
Once implemented, it becomes a binding contract and cannot be revoked. Without the sale deed, the buyer would not have any legal ownership rights to the property. The property sale deed typically contains information about the property being sold, such as its address, size, price, and any special features or restrictions that may apply to it.
It will also include information about the purchase price and other conditions that must be met before the final sale. For example, the deed might stipulate that the buyer must obtain financing within a certain period or that the property must be inspected by a qualified professional before the sale can be completed.
Importance of Sale Deed
A sale deed is an important legal document that outlines the terms of a real estate transaction. It is binding on both the buyer and the seller and can be used to transfer ownership of the property from one party to another. A qualified lawyer or notary public should prepare the sale deed, and both witnesses should sign it.
The sale deed is crucial because it protects both the buyer and seller in a real estate transaction. It ensures that the terms of the sale are clearly stated and that both parties understand their rights and responsibilities. The deed can be used as evidence in court if there is a dispute about the property or the sale.
Therefore, consulting with a lawyer or notary public is essential to ensure the deed is properly prepared and executed. This will help to protect the buyer’s interests and avoid any problems down the road.
Documents Needed for Sale Deed Registration
Certain documents amongst others are needed for the registration of a sale deed form, which are as follows:
- Sale Agreement
- Power of Attorney, if applicable
- Aadhaar Card
- PAN Card
- Passport-Size Photographs
- Property Tax Receipts
- Bank Passbook or Statement
- NOC from Society (if applicable)
- Allotment Letter (if applicable)
After obtaining all these records, a person might consult a lawyer to have the original sale deed customized to their needs. The attorney will support the buyer throughout the registration process.
Rights of the Seller
The seller has the right to:
- Sell the property
- Evict any unauthorized occupants
- Collect all rents and profits due
- Sue for trespass if someone enters the property without permission
However, the seller cannot convey any title or interest that they do not have. For example, if there are outstanding mortgages on the property, the seller cannot transfer a clear title because they do not have it. The buyer would take on responsibility for those mortgages.
The Bottom Line
A sale deed is a legal document that transfers property ownership from one person to another. It is an important document because it establishes the new owner’s rights to the property. A sale deed also includes important information about the property, such as its size, location, and any restrictions on its use. If someone is buying or selling property, have a lawyer review the sale deed to ensure that it is correct and complete.
Disclaimer- This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim/disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.