Everything You Need To Know About Sales Deed
Aug 19, 2019 Legal Guidance
While doing research on buying the property, one often comes across the term sales deed. It is one of the most important and valuable legal document that a homebuyer must possess. The sales deed is also called a purchase deed, and it is only after establishing your ownership through purchase deed, you are allowed to proceed with registration and mutation of the property. The sales deed is drawn on a non- judicial stamp paper drafted by the legal draftsman according to the value prescribed by the stamp duty act of the state.
Let us discuss everything you need before signing the sales deed:
1. Parties for the sales deed:
The sales deed must begin with the details of the parties involved in the transaction. The name, age, occupation, and address of both the parties must be mentioned. Both the parties are required to sign the document to execute the deed.
2. Description of the property:
Apart from the details of the parties involved, the sales deed must have the accurate description of the property including address, street name, city, and plot identification number, details of construction, exact location and surrounding. He property schedule must be incorporated in the sales deed to define the accurate location of the property.
3. Sales agreement:
If you are buying an apartment in Mumbai, you will have to draw a sales agreement. This document states all the terms and conditions of the agreement so that no conflict arises in the future. The sales agreement is brought before the sales deed.
4. The clause of sales:
The amount agreed between the buyer, and the seller must be included in the sales consideration. This is the amount that the buyer agrees to pay the seller during the execution of the sale.
5. Advance payment and the mode of payment:
If any advance payment has been made to the seller, then it must be mentioned in the sales deed. Apart from the method with which the transaction will complete should also be mentioned. If you have taken a home loan to furnish capital, then everything regarding the home loan must be mentioned clearly.
6. Passing the title:
The sales deed must mention when the title is passed to the buyer. The seller must be given a particular time frame within which the title must be transferred to the buyer.
7. Possession delivery:
A clause must be mentioned in the sales deed that after the completion of registration of the property, it is transferred to the buyer. The sales deed must possess the actual date of property transfer.
8. Indemnity provision:
Applicable in the case of resale properties, the provision states that the seller must clear all the outstanding charges on the property before the sales deed has been executed.
9. Default clause:
Every sales deed must have a default clause which states that whichever party default in either payment of fulfilling their role then they are liable to pay the penalty.
Let us discuss everything you need before signing the sales deed:
1. Parties for the sales deed:
The sales deed must begin with the details of the parties involved in the transaction. The name, age, occupation, and address of both the parties must be mentioned. Both the parties are required to sign the document to execute the deed.
2. Description of the property:
Apart from the details of the parties involved, the sales deed must have the accurate description of the property including address, street name, city, and plot identification number, details of construction, exact location and surrounding. He property schedule must be incorporated in the sales deed to define the accurate location of the property.
3. Sales agreement:
If you are buying an apartment in Mumbai, you will have to draw a sales agreement. This document states all the terms and conditions of the agreement so that no conflict arises in the future. The sales agreement is brought before the sales deed.
4. The clause of sales:
The amount agreed between the buyer, and the seller must be included in the sales consideration. This is the amount that the buyer agrees to pay the seller during the execution of the sale.
5. Advance payment and the mode of payment:
If any advance payment has been made to the seller, then it must be mentioned in the sales deed. Apart from the method with which the transaction will complete should also be mentioned. If you have taken a home loan to furnish capital, then everything regarding the home loan must be mentioned clearly.
6. Passing the title:
The sales deed must mention when the title is passed to the buyer. The seller must be given a particular time frame within which the title must be transferred to the buyer.
7. Possession delivery:
A clause must be mentioned in the sales deed that after the completion of registration of the property, it is transferred to the buyer. The sales deed must possess the actual date of property transfer.
8. Indemnity provision:
Applicable in the case of resale properties, the provision states that the seller must clear all the outstanding charges on the property before the sales deed has been executed.
9. Default clause:
Every sales deed must have a default clause which states that whichever party default in either payment of fulfilling their role then they are liable to pay the penalty.
Looking for property portal?
Related Articles
-
Legal Validity of the Rental Agreement
Feb 05, 2020 -
A Guide to Claiming Tax Benefits on Joint Home Loans
Jun 13, 2018 -
-
Tax Benefits on Home Loan that You should Know
Jun 13, 2018
See comments (0)
Write a comment
