Published: 23rd December 2009
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Ashish Gupta outlines what this document contains and its relevance
Asale deed, also referred to as conveyance deed, is the main document in a transaction of sale and purchase of property. A sale deed acts as the main legal document that evidences the sale and transfer of ownership of property in favour of the buyer from the seller. It also acts as the main document for further sale by the buyer as it establishes his proof of ownership of the property.
Through the sale deed, the transferor transfers his rights to the transferee. The transferee or the purchaser then acquires absolute ownership of the property. A sale deed is executed after the execution of the agreement to sell, and after compliance of various terms and conditions detailed in the agreement to sell as agreed upon between the buyer and seller.
A draft sale deed is prepared on non-judicial stamp paper of requisite value as prescribed by the Stamp Act of the State concerned. This is agreed upon and approved by both the seller and purchaser. The draft sale deed sets down the terms and conditions of the sale. It contains details of the parties to the transaction, details of property being sold, sale amount agreed on, advance amount paid, dates of payments, mode of payments, time limits for payments, time for handing over the original documents of the property, time for handing over the clear possession of the property, indemnity provisions for the parties etc.
The document gives full details of both the seller and purchaser such as their names and their respective addresses, and is signed and executed by both the parties - seller and purchaser. Besides giving details of the property under sale - identification number, orientation, total area of the plot, detail of construction etc - and details of the total amount to be paid, it also details the transactions made at different levels with complete details of instruments through which the transactions were held with dates, numbers and names of the banks where instruments are drawn. It also contains the terms and conditions agreed on by both the parties while transacting the deal.
A receipt for the money, from the seller, also forms a part of the sale agreement. The seller, besides giving a detailed list of other documents executed by him in favour of the purchaser, also certifies the property under sale to be free from any encumbrance and without any lien.
Once all the terms and conditions have been agreed upon, a sale deed is prepared. This is the main document for transfer of ownership of property. The deed is executed by all the parties and all pages of the deed are signed. The deed should be witnessed by at least two witnesses giving their full names, signatures, and addresses.
The buyer should ensure the title of the seller is clear before the execution of the sale deed. It should be ensured there is no charge or encumbrance on the property. In case there is any encumbrance on the property, the seller needs to repay the loan and get the property papers cleared of the encumbrance. The purchaser should verify the encumbrance status from the registrar's office.
Under the Registration Act, a sale deed of property needs registration at the jurisdictional sub-registrar's office. All the parties need to be present at the time of registration. All documents should be presented in original. In case the purchaser cannot be present personally before the sub-registrar, he can give a Power of Attorney to his agent to sign and present the documents on his behalf. The photos of the purchaser, thumb prints and signature are entered on the sale deed.
The documents should be presented for registration within four months from the date of execution. If it is not done within four months, a grace period of another four months is allowed on payment of a penalty. A maximum penalty of 10 times the registration charges may be levied by the registrar. The liability to pay the stamp duty as well as the registration charges lies with the purchaser of the property.
Subject to an agreement between the parties, all statutory payments like cess, property tax, water charges, electricity charges, society charges, maintenance charges etc should be paid by the seller before the execution of the sale deed. The seller should also obtain the requisite clearances, approvals and permissions to transfer the property prior to execution of the sale deed.
Courtesy:- FT dt:- 20-12-2009

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