A sale deed is one of the significant documents in property transactions
What is a sale deed?
A sale deed is a legal document that describes the sale of a property between the parties (buyer and seller). It is proof of ownership. It transfers the rights in the property from the seller (transferor) to the buyer (transferee).
Following rights are transferred to the buyer:
- Right to sell
- Right to use
- Right to lease/mortgage
It is essentially a contract and therefore, all the legal requirements of formation of a contract must be fulfilled.
Read: What If Buyer or Seller Breaches Sale Agreement
Legal Importance: Registered Sale deed is a legally binding document.
Proof of ownership:
Once the process of executing the sale deed is completed, the ownership in the property gets transferred to the buyer. The buyer gets absolute right over the property, and he gets the title of ownership.
Details of the parties and the property – help the investor and the parties
Sale deed contains the following elements:
- Name, father’s name/husband’s name and address of the parties
- Address of the property, area of the property –full description
- Payment of sale consideration-mode and time
- Delivery of Possession
- Encumbrances on the property –loan, mortgage etc.
- Compliance of Statutory requirements
- Statutory payments like utility charges, property tax etc.
- Clause of Penalty or compensation in case of default
- Date of execution of deed with registered deed number, serial number, book number, page number etc.
Read: NRIs and Commercial Property
This information is helpful –
- It avoids ambiguity as the parties are clear about their obligations and rights
- It guides an investor before finalizing his decision to invest in the property in case of resale.
A sale deed facilitates the resale of the property. It is a primary document conferring the title on the buyer. This title can be transferred by him further based on the deed.
Read More: Process of Registration
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