The Deed of sale is an essential document that has complete detailed information about the transfer of ownership of property. It is one of the legal documents while buying, selling or transferring a property in India. The document is also called the Deed of Sale or the Conveyance Deed.
The terms and conditions of the deed of sale must be expressly agreed by all parties involved in the sale. The property buyer and seller are to accompany 2 witnesses at the time of executing the Sale Deed at the registrar’s office.
The seller is supposed to have paid all dues concerning the property. The buyer could do well to ensure clear titles of the property before signing the Deed of Sale. He/she can verify all charges and balances by availing the Encumbrance Certificate (E.C) of the property at the registrar’s office.
Following is the list of most common encumbrances:
The procedure of Deed of Sale in India
It is crucial for the Deed of Sale to be registered in the sub registrar’s office. A Sale Deed that is not registered does not pass the ownership to the property purchaser even if he/she has paid the full price upfront to the seller.
Following steps are involved in registering a Sale Deed or Deed of Sale:
What happens to the Sale deed if the property is purchased on a mortgage?
If the property is purchased on a mortgage, the mortgagee holds the right to hold the registered deed of sale in his possession until the mortgage is entirely paid.
What Information does the deed of sale should have?
The Deed of Sale has every information must to complete the sale of property including:
Indemnity provisions concern the risk transferring facility both the buyer and the seller have should they face a liability, harm or a loss due to the contracts made between the two parties.
What Happens After the Deed of sale is Executed?
All documents relating to the property have to be presented within four months from the execution of the Sale Deed at the office of registrars. A grace period of 4 more months may be availed upon by paying a maximum penalty of 10 times the registration fee.
The property registration process is completed after all the documents are verified and approved by the sub-registrar. A photocopy of the documents is kept at the sub-registrar’s office while the original documents are given to the buyer.
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