What Is Sale Deed In India?

Although there are many types of property documents available, the sale deed is one of the most important documents between the seller and the buyer. Due to increasing frauds and property scams, selling or buying a property or house has become a concern in India Lawyers in New Delhi.

What is a Sale Deed?

A sale deed, a legal document, is proof that the seller has given the buyer absolute ownership. Indian deeds of sale outline the rights and interests to the property and state that they have been transferred to the new owner.

The components of a sale deed

The best property contract-drafting and vetting lawyers in India must draft a deed of sale. It must contain the essential components that protect both the buyer and seller’s rights. These are the key contents of a sale agreement:

Name and contact details for parties

• PAN number of seller and buyer
• Photographs of parties
• Tax liability
• Take into account
• Warranty and representations
• No encumbrances
• Absolute/partial rights
• Details about payment of stamp duties and registration fees
• Name of the person who pays stamp duty
• Indemnity
• Dispute resolution
• The law that governs
• Description and schedule for the property
• Two witnesses details
• Signatures of witnesses and parties
• Parties to the Sale Deed

The first provision of any sale deed must include the buyer and seller’s names, addresses, etc. To validate each party’s rights, the provision must mention the name, age, and address of the seller and buyer. Both the buyer and seller must sign, execute and register the sale deed.

Description for the Property

The property sale deed should clearly identify the property being sold or purchased. The property sale deed should include details about the plot, ID number, construction details, location, surroundings, and amenities. 

Sale Agreement

The sale agreement is usually drawn up prior to the sale deed. The agreement stipulates that the seller and buyer will agree to mutually settle the terms of any agreement. This agreement does not affect either party’s rights. The sale deed should mention that the sale agreement was executed between the parties.

Property Price

This clause outlines the amount that the buyer will pay to the seller in consideration of the property. This clause also contains details about any advance, how cash, cheque, or DD payments will be made, and any installments or payment cycles details. The seller must consent to the seller accepting it.

The Title Has Been Passed

When the property’s title will be transferred to the buyer should be noted in the sale deed. A time limit must be set for title transfer by the seller. All rights related to the title transfer must be given to the seller once the title is transferred.

Possession Delivery

The sale deed should contain a clause that states that the seller will transfer the ownership of the property to the buyer after the registration process is completed. The actual date of possession must be stated in the sale deed.

Indemnity provision

Indemnity is protection from damage or loss. It can also be a promise to compensate for any damages or losses that occur. The term is taken to mean exactly what it means in a property transaction. This clause is especially important for plot buyers, as plots can be riskier.

Legal professionals are required to draft the deed of sale. They must be familiar with all details. Lawyers in New Delhi will connect you to top document lawyers in India for deed-of-sale drafting, vetting, and registration.