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What is Sale Deed?

A sale deed is one of the most valued legal documents in a purchase or sale of a property. It is administered by the Registration Act and is asignificant document for both the buyer or the transferee and the seller or the transferor.

How is it prepared?

The buyer and the seller decide to prepare a draft sale deed on non-judicial stamp paper. This value of the sale deed will differ from state to state and it is generally as prescribed by the Stamp Act of the respective State.

Once the following particulars in the sale deed is settled between the two parties the sale deed is ready to be signed and it is required to be signed by at least two witnesses with all their details encompassed.

How does it work?

The sale deed is registered at the jurisdictional sub-registrar’s office. The buyer and seller of the property under sale as well as the witnesses should also be present at the time of registration.

In case if the buyer or seller is not in a situation to be physically present then his nominated agent authorized with a Power of Attorney is lawfully allowed to implement the sale deed.

The original documents correlated to the sale of the property must be produced within 4 months from the date the sale deed to be executed. If this is not possible the registrar might allow a grace period if he deems fit.However this deferral might attract a maximum penalty of 10 times the registration charges related to the property.

Usually, the buyer would pay the stamp duty and the registration charges. And the seller on his part should ensure that all payments related to the property was paid before the sale deed is executed.

Advantages of a Sale Deed

Safeguards Parties

The sale deed protects the rights of both the parties. A specific, well-drafted deed will avoid uncertainty and reduce legal risks.

Defines the Area

For the buyer, a key benefit is having on paper a well-defined explanation of the property.

Term/ tenure

It requires approx.4 working days to make and deliver the deed and in case of modification.

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