What Does Make a Sale Deed Consist of?Samar Javed11 February 2020
The sale deed meaning is that it is the point of consideration that one must look after while buying a property. It is legal documentation that one must have as a record of a home purchase. According to the sale deed details, you can proceed with mutation and registration of the home seamlessly.
The transaction of a house purchase is not considered valid unless both the seller and buyer sign the sale deed. You might also need two witnesses before signing the sale deed. According to the government authorities, the sale deed is the most important document of all to ensure your house purchase.
In this article, you will know about what is sale deed and the contents of the documentation.
Information on Either Party
The first thing that comes up in the sale deed is the details of either party, both seller and buyer. It will consist of age, name, gender, and addresses. This information under this section of the sale deed becomes essential for ensuring transaction validity. Both parties need to fill this section with legit details and also submit the government to authorize proof to support the credentials. This process will commence with the intention of bona fide signing of the sale deed.
Information on the Sales Property
The next content on the sales deed is the information about the selling property. There must be a separate column in the sales deed describing the details of the property that the buyer is willing to purchase. The description of the property must include information such as plot area, construction details, unique identification number, and others. Not only that, but this section of the sale deed format must have the information on the surrounding properties as well as location details. The sales deed must be checked for replicating this information before moving on to make the transaction.
Registration Bookings Appointment Status
Firstly any of the parties will have to book an appointment with the sub-registrar online. After which both the parties have to reach the office of the sub-registrar on the decided time. The sales deed will consist of a section with the appointment details. It would help if you also carried a printout of the confirmed appointment status to the office for the transaction proceedings. Booking for the appointment and adding that information on paper is the first process before event planning for a home purchase transaction.
The Agreement of Sales
In the sale deed contents, the sales agreement states that the buyer party has cleared the booking amount. It also ensures that either party will fulfill the terms and conditions for a healthy transaction process without violating the rights of either buyer or seller. The need for the agreement of sales comes up before the process commencement of sales deed.
It is better known as conveyance deed that replicates the understanding convenience of both buyer and seller parties for the property exchange. The agreement of sales ensures that there is no confusion or dispute amongst the two parties before signing the sale deed of house property.
This clause states the amount decided by either party that is included in a particular section of the sales deed. It will be the final amount decided by the seller and agreed by the buyer on all terms. It is the clause section where the buyer guarantees to pay a decided amount to the seller during the process of seed execution. This section of the sale deed documentation also counts important as it is a written proof of the amount decided for paying to the seller.
Advance Payment and Payment Mode
Under this section, the buyer and the seller must emphasize mentioning any advance payment details made earlier before the execution of the sales deed. The advance payment amount must be deducted from the total amount and must be mentioned on the sales deed document. Along with that, the remaining payable amount must also be mentioned for the convenience of either party. Moreover, the sales deed must also consist of information on the mode of payment by which the buyer has agreed on paying the entire amount that includes DD, cash, or cheque.
The final Amount of Stamp duty processed on non-Judicial Stamp Paper
The stamp duty is the tax amount based on the property that the buyer has to pay to the government for taking charge of the property. The stamp duty in the sales deed is calculated concerning the entire transaction amount of the property. The parties need to calculate the cost and put it on the sales deed. Without paying the stamp duty, you cannot legally claim the property in your name.
The non-judicial stamp paper is very much essential for pulling off a sales deed. All the information and the contents are added to the stamp paper and processed further. The legal draftsmen take consideration of this sales deed stamp paper and add the value of the stamp duty according to the state government.
Title Passing in Sales Deed
The sale deed must consist of the date from when the buyer can possess the full rights of the property that is also known as title passing. The seller will be given time on the mutual decision for transferring the title in the name of the buyer. After the title passing is over, all the rights on the property will legally shift to the name of the buyer.
Possession Hand Over
The seller must go through the information in the sale deed regarding the property possession transfer in the name of the buyer after the sale deed registration and signing completion. The sale deed also consists of the final date of possession transfer.
The content of Indemnity Provision
The indemnity provision is essential for resale property. This the clause that is stated on the sale deed that represents the property tax, water bills, electricity bills, and all other associated charges. If the home was on loan, then the seller must repay the loan before selling the property to other buyers.
The clause of Default Penalty
Under this clause content of the sale deed of flat or property, the buyer or sellers are asked to pay the penalty for any defaulting scenario. The payment is made to the non-offending party to process the deed of sale execution seamlessly.
These are few of the sale deed essentials of a contract of sale to completely transfer the rights of a property in the name of the buyer.