Know The Basics Of A Sale Deed
While buying a house, it is always better to be legally protected with the ownership of the same. Among various others, a sale deed is a crucial document that verifies the ownership of a property.
What is a sale deed?
A sale deed, governed by the Registration Act, is one of the valuable documents in sale or purchase of a property. The deed is equally important for both the buyer (transferee) and seller (transferor). The sale deed is legally complete only after it is signed by both buyer and seller. Both the parties have to comply with the terms and conditions mentioned in the agreement. The deed contains the names, age and addresses of the parties involved in the transaction.
Details of the property sold: Full description of the property, including its identification number, construction details, total plot area, location and other related details, have to be mentioned in the sale deed.
Sale agreement: Both the parties must mutually settle the terms and conditions of the agreement so that it does not affect either of the parties.
Clause for sale consideration: A clause stating the sale consideration or amount that is agreed between the buyer and the seller has to be included in the sale deed. The amount agreed between the parties has to be paid by the seller to the buyer during the execution of the sale deed.
Payment: Both the parties should mutually agree on the mode of payment: cash/cheque/demand draft, etc. If a token amount or advance payment has been made by the buyer to the seller, it has to be mentioned 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 original title of the property to the buyer. The seller should be given adequate time to transfer the title and once it is done, all rights should be passed to the buyer.
Possession or delivery of the property: A sale deed in a clause must include the date of delivery of the property sold to the buyer.
Indemnity provision: A clause must be present in the sale deed, stating that the seller must clear all statutory charges such as electricity bill, water bill, property tax, society charges, maintenance charges, etc. If he has taken a home loan, he should repay and get the papers back from the bank. It is the responsibility of the buyer to check any dues while buying a property.
Default clause: A sale agreement should include a clause about default on the part of any of the parties. In case of a default, the defaulting party will have to pay a penalty to the non-offending party. A sale deed is considered to be complete only after it is ratified by two witnesses from both parties. It should also contain the names, addresses and signatures of both witnesses.