How Sale Deed Is Executed?
A sale deed, also known as conveyance deed, is a critical document in property transactions. It is a legal document and an evidence that the sale of a property has been made in favour of the buyer from the seller. It is also a proof that the buyer is the absolute owner of the said property.
Here is how a sale deed is executed:
- The deed is executed after the execution of the agreement to sell, and after complying with various terms and conditions outlined in the agreement.
- The draft sale deed is made on a non-judicial stamp paper as prescribed by the Stamp Act of the state concerned. The document lays down the terms and conditions of the sale and contains the details of the parties, the property, the sale amount, the advance payment, the dates, the mode of payment, the time for handing over the original documents and the possession of the property, etc.
- Apart from giving the complete details of both the seller and the purchaser, the contract is signed and executed by both the parties. Details outlining the specifications of the property — identification number, total area of the plot, details of construction, the total amount to be paid, the instruments through which such transactions will be made — are also stated.
- The earnest money paid by the buyer also finds a mention in the agreement.
- Besides giving a detailed list of documents executed by him in favour of the buyer, the seller also certifies that the property under sale is free from any encumbrance.
- Subject to an agreement between the parties, payments such as property tax, water charges, electricity charges, society maintenance charges, etc, should be paid by the seller before the execution of the sale deed.
- Once all the terms and conditions have been agreed upon, the sale deed is made. The main document for the transfer of ownership of property, it is executed by all the parties and all pages of the document are signed. It is mandated that the deed should be signed by at least two witnesses, giving their full names and addresses.
- Under the Registration Act, the sale deed is registered at the sub-registrar's office, where it is compulsory for both parties to be in attendance, along with original documents. For any reason, if the buyer can’t be present at the sub-registrar’s office on the given day, he can give a power of attorney to his agent to act on his behalf.
- After the sale deed has been signed by both the parties, the documents should be presented for registration within four months from the date of execution. If it is not done, a grace period of another four months is given on payment of some fine.
- Generally, the buyer is responsible for the stamp duty as well as registration charges.