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10 Things To Keep In Mind While Drafting A Sale Deed

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Owning a great house has always been your dream. It is not everyone who gets close to making it a reality. Now that you have come closer to buying that perfect home of your dreams, a place where you vision yourself, watch your children grow, retiring peacefully and doing everything that you wanted to; keep some things in mind so that your visions come true. You may be a young buyer aspiring to get that perfect apartment or a seller who intends to dispose of a smaller property in order to graduate into a larger one. There is no denying that a perfect Sale Deed is what it takes to seal the deal for your benefit. Yes, It is true that there are umpteen documents that are required for a sale to happen, but it is the Sale Deed that you create based on your particular needs. Let’s check out how to draft that perfect document which transfers the ownership of a property in your name.

1. Do not use a copy-paste deed

This is the most important aspect of drafting a document: Do not let a non-expert prepare your document. It is a common practice for buyers to visit DTP centers near Sub-registrar offices and use agreements drafted for other parties by changing the names and property details. This is a dangerous trend since every property is unique and every case is different. The applicable laws change from time to time. Hence, it is a safe bet to leave it to experts, unless you have sufficient expertise yourself. 

A sale deed is subject to laws like The Transfer of Property Act, the Indian Contract Act, the Indian Registration Act and the concerned State Stamp Act.

2. Introduce the document and parties correctly

The title may be either ‘Sale Deed’ or ‘Deed of Sale’. It is different from the agreement to sell where the individual terms and conditions of the sale are mentioned. Details of the parties should be mentioned including full name, addresses, age and occupation if possible. Details of the parties are required to show that they are not barred from entering into a contract under the Indian Contract Act, 1872. Did you know that agreements with minors and insane individuals cannot be enforced by law? So it pays to verify the age proof if you suspect that the property ownership lies with a minor. Even a power of attorney granted to a major by a minor is not valid.

3. Connect it to the Agreement to Sell

A proper mention must be made to the detailed agreement to sell drafted between the parties where the seller agreed to sell and the buyer agreed to buy. It also contains all the important terms and condition based on which the deed of sale is drafted. The sale deed is usually a brief document and the detailing is given in the agreement to sell. Both are interconnected and interdependent. Therefore a proper description of the agreement to sell should be given including the registration details of the same. The stamp duty paid on an agreement to sell is usually adjustable on a sale deed.

4. Describe what is being sold, everything about it

The key aspect of the sale deed is the property. Every bit of detail of the same should be recorded in the sale deed starting from the extent of the property, the survey number, the address, the construction details including roofing, number of rooms, parking facilities, borewell if any, boundary details, etc. The sale deed should mention how the property came under the ownership of the seller: for example – vide a sale deed dated xx-xx-xxxx.

5. Clear title matters

The property to be sold should have clear and marketable titles. The ownership must be absolute and not conditional. If it is a jointly owned property, all the sellers need to be present for registration of the sale deed. The property should be free from all encumbrances, liens, etc. The property should not be liable to be attached by any authorities. All facts regarding the same should be mentioned.

6. Show what you paid, and how

Consideration is the monetary compensation that a seller receives in exchange of his property. We advise you to state the exact amount and to pay the recommended taxes for your own interests, however tempting it may be to understate the cost to save some tax amount. The advance amount paid while making the agreement to sell should be mentioned as well. How you made/received the payment also matters. It may be through cheque, online transfer or through cash. If cheque, mention the cheque number or the transaction ID, if online transfer.

7. Let the title pass to the buyer

The very purpose of a sale deed is to enable the transfer of title from one party to another. This is the main document that will be used to change all certificates and documents related to the property. It is also what separates it from an agreement to sell because the transfer of title is a future obligation in an agreement to sell- which is fulfilled with a deed of sale.

8. Get indemnified

If you are a buyer, make sure that there is a detailed indemnity clause which shall make the seller responsible for any hindrances in the peaceful enjoyment of the property. Sometimes family properties subject to any dispute may be sold to you. The person who claims the property may create disturbances and nuisance which can make you lose sleep. Sometimes the property may be pledged to some individual or institution who may appear one fine day to stake their claim. This is why it is important to make the seller indemnify you against all problems that affect the sale deed.

9. Delivery details should not be missed

All details regarding how the possession is getting handed over need to be mentioned. Delivery of all the important documents in original and copies as applicable should be recorded. This will avoid confusions in future as to which document lies with whom. For example, mother deed may not be given for subdivided properties.

10. Witnesses matter

A valid sale deed should be attested by two witnesses: one from the seller’s side and one from the buyer’s side. Both the witnesses should be competent to contract as well. Their contact details should be mentioned as well.

What’s Next?

Once you are done drafting your Sale Deed, you are good to go with the registration. Remember that all parties involved including the buyer(s), seller(s) and witnesses need to be present. The requisite stamp duty and registration charges will be collected at the Sub-Registrar office while registration, and finally, the property will be registered in the name of the buyer.

Draft Your Sale Deed Online

Buying and selling may be your work. Making it legal is ours. can make the process of drafting your legal documents easier. Fill in pre-drafted templates on our website and get it delivered to your home. 

29 Sep, 16

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  • ***How To Conduct The Title Check Of A Property?*** says: posted on 17 Oct, 2016

    […] If your requirement is of legal nature, we are there to help. We can assist you with all aspects of your purchase/sale of a property – right from the drafting of the agreement to sell, up to the registration of the same in your name. We have a network of lawyers who are specialised in individual tasks that form part of the whole business. For property verification, we can assign the task to experts who can give you a comprehensive report and advice on purchasing a property. You might also be interested in knowing the differences between a ‘Sale Deed’ and an ‘Agreement to Sell’ and important things to keep in mind while drafting a Sale Deed. […]

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