Categories: Blog

Sale deed: What you should know!

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.
  • The clause of Penalty or compensation in case of default
  • Date of execution of a 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.

 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

NRI Legal Services

Leave a Comment
Share
Published by
NRI Legal Services

Recent Posts

The Thyroid Hormones and Metabolism Connection – Explained

The processes necessary for humans to maintain proper growth and development and their metabolism are…

3 days ago

UPSC Admit Card 2022

The UPSC 2022 prelims admit card was released on 10th May 2022. Following that the…

1 week ago

Why Are boAt Smartwatches For Men Becoming More Popular

The boomers, the millennials and now Gen Z!  As time passes over, new generations start…

1 week ago

8 Overlooked Items to Incorporate Into Your Home Gym

With a bit of creativity and some forward-thinking, there's no reason why everyone shouldn't be…

2 weeks ago

Motorized Unicycles VS Mountain Bikes

Modernized electric unicycles are faster and more stable. Although it may seem difficult at first,…

2 weeks ago

What resolution will Mongraal use in 2022?

Kyle "Mongraal” Jackson is one the most skilled Fortnite players in Europe. Four times, the…

2 weeks ago

By using this form you agree with the storage and handling of your data by this website.

Read More