How do I write a sale deed?

What is a sale deed?

Sale deeds are legal documents used to transfer ownership of a property from a seller to a buyer during a property transaction. It is also known as a conveyance deed. A certificate of ownership can also be used to prove the ownership of immovable property. 

Non-judicial stamp paper is used to draft the sale deed, which is set by the state government at a predetermined value. Buyers are responsible for paying stamp duty and registration charges. All property dues, such as loans, taxes, and bills, must be paid before the sale deed is signed. Before the property can be officially transferred, both parties must agree to the terms and conditions.

How do I write a sale deed?

A sale deed should include the following details:

1. Deed type
2. Both parties’ basic details, such as their names, ages, and addresses
3. A description of the property – the date of construction, the number of rooms, and the area covered 
4. A sale agreement outlines that the seller agrees to transfer ownership and legal rights to the buyer, as well as the price of the property, payment methods, and advance payments.
5. In the sale considerations, the time required for possession and handover of the property with original documents is mentioned. Figures and numbers specifying the transactions, along with receipts. 
6. An indemnity clause guarantees the buyer’s payment in case of monetary losses due to ownership disputes.  
7. To keep the terms and conditions of the sale deed intact, the defaulting party pays a penalty to the non-defaulting party.

Steps involved in drafting a sale deed

1. Analyzing your requirements, understanding the procedure, and hiring a lawyer 
2. An evaluation of the sale deed draft will be conducted by the lawyer based on the requirements
3. It is necessary to print the draft on non-judicial stamp paper after the draft has been properly evaluated and approved
4. To submit and register the documents, a meeting with the sub-registrars is required. 
5. The documents must be signed by two witnesses and the registration fees and stamp duty need to be paid at the sub-registrar’s office.

Documents required

1. A draft of a sale deed, title deed, or conveyance deed
2. The power of attorney
3. Building plan sanctioned by a statutory authority
4. A letter of allocation and a letter of approval from the housing board or apartment association
5. Tax receipts, electricity bills, etc., that have been paid recently
6. A copy of all previous agreements as well as any documents related to real estates, such as loans, mortgages, and contracts. 
7. Ownership documents for properties
8. Agreement of sale

What is the process for obtaining a certified copy of a sale deed?

A sale deed is an important document when selling or buying fixed property. Registrars and sub-registrars can provide a true and certified copy of the sale deed if it is lost, stolen, or damaged. If the papers are stolen or lost, the owner must file an FIR with the police

A certified copy of the sale deed can be obtained by submitting an application along with essential documents showing ownership and an affidavit to the Sub-registrar’s office under whose jurisdiction the property is registered. State-by-state, charges vary. It will take a few days for the Sub-Registrar’s office to issue a copy of the sale deed after verification.

Advantages of having a Sale Deed

1. Provides evidence of transfer of property in case of dispute
2. Provides information about both parties rights and obligations
3. It is important to draft a deed carefully to avoid legal risks and ambiguities
4. Describes the property being purchased in terms of its area
5. Stabilizes and simplifies the transfer process

Importance of a Sale Agreement 

A sale agreement has multiple purposes, such as proving a transfer of property legally. It would also be helpful when applying for a home loan. An application without a sale agreement might not be accepted by the bank. Moreover, it ensures that both parties follow all the terms and conditions of the sale deed. At the request of the other party, any party who flouts will be taken to court.

Read More:

1. The sale deed: important clauses and their execution