Agreement & Contract

Sale Deed Drafting: Take utmost care before registry

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Becoming an owner of your dream house was and is one of the top most wishes of any individual’s life. Afterall, the wiser people have said and still say – a self-owned house is a matter of one’s prestige and social security. However, buying a property (flat or floor or piece of land with or without construction) is slightly complicated, especially when it is your first transaction as a buyer. Besides the huge sums of money, several documents having legal bearing are required to successfully complete the transaction. An important point to remember here is that once you register the purchase document with the local or district office of the designated government authority, you become the first or second or nth owner in the sale chain. For your information, the zeroth owner is generally referred as the original allotee of the property.


Out of the long list of documents that are required for buying a property, Sale Deed is one of the most important legal documents that the buyer and seller must execute/register in the district sub-registrar’s office to formally complete the transaction. Before we move forward, let us understand the definition of a sale deed.


What is a sale deed and why it is important?

A sale deed is a legally binding agreement between the buyer and seller of the property that enables a seller to transfer the legal right and title of his or her property to the buyer. By executing this document or in other words, registering a sale deed in the district sub-registrar office, buyer(s) becomes the new owner of the property. Once registered successfully, seller(s) no longer remain the owner(s) of the property. Additionally, the heirs and legal representatives of the seller(s) no longer have any right or claim over the property.

ALSO READ: Know Various Aspects About The Gift Deed & Stamp Duty 

We must also understand several points as mentioned below that are extremely important from the property buyer’s perspective:

  • Seller(s) is referred as a Vendor in a sale deed
  • Buyer(s) is referred as a Vendee in a sale deed
  • Sale Deed has details of buyer, seller and witness – full name, address, age, pan number and aadhaar number
  • Sale deed also includes detailed description of the property that is being sold or bought
  • It is mandatory to register a sale deed with competent government authority to complete the transaction and is legally binding
  • Sale Deed document is drafted by a qualified property lawyer or advocate
  • Sale Deed document is printed on a stamp paper
  • Stamp duty and property registration fee is paid by the buyer to the state government where the property is located for getting the stamp paper from the competent authority
  • Sale deed has details of total amount paid by the buyer to seller for buying the property
  • Sale deed includes details of all the payments made (including TDS on property and stamp duty) by the buyer to the seller
  • Sale deed also has indemnity clause where seller assures the buyer that property is free from any disputes, incumbrances, mortgages or loans and has a clear title
  • Sale deed also includes assurance from seller to buyer that seller has paid all taxes, charges and loan payments on the property before completing the sale transaction
  • Sale deed also includes the details of possession of the property under consideration


ALSO READ:  Rates Of Stamp Duty On Gift Deeds Across Some Prominent Cities Of India


Role of a Property Lawyer or Advocate in drafting a sale deed

It is advisable that a property buyer must consider all the above-mentioned points carefully. However, it becomes imperative to draft a sale deed document in a proper manner before it is printed on the stamp paper and presented to competent authority for registration. Ultimately, no buyer would like to entertain post transaction issues due to a loosely worded sale deed agreement. Hence, the role of a property lawyer or advocate becomes extremely important.

Prperty Lawyer: Consult a Property Lawyer from here

A property lawyer is a specialised legal professional who can help the parties involved in drafting a sale deed document appropriately so that rights of the buyer remain protected at any given point post successful registration of a sale deed. A property lawyer, while drafting the sale deed can takes the following steps:

  • verifies the legal status or title of the property from the office of the competent authority
  • drafts sale deed document aptly based on the information provided by parties involved in property transaction
  • edits sale deed draft document in case any changes are suggested by parties involved in property transaction
  • presents final draft of sale deed and takes approval
  • prints approved sale deed draft on stamp paper
  • takes appointment from the sub-registrar’s office for registration of the sale deed
  • presents buyer, seller and witnesses along with all property documents on the date of appointment for execution of the sale deed (usually called as registry)
  • acts as, only sometimes, as a witness to the property transaction
  • collects the registered sale deed from sub-registrar’s office and hands it over to the new owner or buyer of the property

The process of drafting a sale deed is surely not simple and having a property lawyer or advocate who is equipped with knowledge of property laws is always advantageous. Any lapses will likely prove costly in the future. Taking advise from a legal expert is a right thing to do.

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