While buying a property in India, it is always better to be legally protected with the ownership of the property. A sale deed is one of the crucial documents that verify the ownership of a property.

What is a sale deed?

A sale deed, governed by the Registration Act, is one of the precious documents in the sale or buy a property. The deed of sale is equally necessary for both the buyer (transferee) and the seller (transferor). The sale deed is legally complete only after both buyer and seller sign it. Both the parties (buyer and seller) have to comply with the terms and conditions mentioned in the deed agreement. The deed agreement contains the names, age and addresses of the people involved in the transaction.

Details of the property sold: Full description of the property, including its construction details, identification number, total plot area, location and other related information, have to be mentioned in the sale deed.

Sale agreement: Both the buyer and seller must mutually settle the terms and conditions of the deed agreement so that it does not affect either of the parties.

Clause for sale consideration: A provision stating the sale amount or consideration that is agreed between both parties, i.e. the buyer and the seller has to be cover in the sale deed. The amount agreed between both parties has to be paid by the seller to the buyer during the execution of the sale deed agreement.

Payment: Both the parties should mutually agree on the mode of payment: cheque/cash/demand draft, etc. In case, if the buyer has made an advance payment or a token amount to the seller, it has to be specified in the sale deed, including the remaining amount to be paid.

Passing of the title: A sale deed must have a clause about the transfer of the original title of the property to the home buyer. The seller should be given sufficient time to transfer the title, and once it is done, all rights should be passed to the property buyer.

Possession or delivery of the property: A sale deed in a clause must cover the date of ownership of the property sold to the buyer.

Indemnity provision: A condition must add in the deed of sale, revealing that the seller must clear all statutory charges such as water bill, electricity bill, property tax, society charges, maintenance charges, etc. If a seller has taken a home loan, he should repay and get the papers back from the bank. The buyer must check any dues while buying a property.

Default clause: A sale agreement should involve a clause about default on the part of any of the buyer or the seller. In case of a default clause, the defaulting party (either buyer or seller) will have to pay the penalty to the non-offending party. A sale deed agreement is considered to be complete only after two witnesses ratify it from both parties. It should also contain the details like names, addresses and signatures of both witnesses.

As a law firm, we advise one and all that sale deed is very important to document for both the buyer and the seller. Hence one must check the original documents before finalising the deal.