Sale Deed Drafting: Take utmost care before registry
Agreement & Contract

Sale Deed Drafting: Take utmost care before registry

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.

Legal Considerations to Keep in Mind Before Selling Your House
Property

Legal Considerations to Keep in Mind Before Selling Your House

Selling anything is a tedious task, let alone selling a house. What are the requisite documents for sale? What is the correct procedure? Are there any risks involved in the process? If one does not have answers to such questions, selling a house can become an ugly affair.

Law relating to Sale of Houses

Houses are a tangible piece of immovable property. The main legislation which governs the sale and transfer of property in India is the Transfer of Property Act, 1882 (hereafter referred to as "TPA"). Chapter III of TPA deals with the sale of immovable property.

  • Sections 54 and 55 of the TPA are of enormous relevance in our context. Let us discuss the crux of these provisions under the following headings:

Rights and Liabilities of the Seller - Section 55 of TPA

There are several rights and liabilities mentioned for both the buyer and seller. There are rights and duties regarding the seller, before and after selling his/her property. Let us discuss them under the following headings:

Before Sale of Property

The duties of a seller before selling his/her property are as follows:

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After-Sale of Property

There are a few duties of the seller after the sale of the property. They are as follows:

  • The seller is bound to deliver the possession of the property after the sale to the buyer.
  • Through the contract with the buyer, the seller's interest has professed to transfer to the buyer will exist, and the buyer will have the right to transfer the same.
  • If all of the purchase money has been paid by the buyer, the seller is bound to deliver all documents of title relating to the property in the seller's possession.

Documents required for selling your house

As already mentioned above, under TPA, the seller is mandatorily required to produce all the relevant documentation before the buyer. A bunch of property-related disputes arises due to the lack of proper documentation. Thus, it is crucial from both the seller's and buyer's perspectives to give the requisite attention to the documentation of the deal.

  • The documents required for the selling of a tangible immovable property (such as a house), are as follows:
  • Letter of allotment: This is the document that conferred the allotment of the property which is in possession of the seller, who had purchased this property from a relevant society or authority.
  • Sale Deed: All the original sale deeds from the previous owners of the property who have handed it down to the current owner (the seller). This helps in tracing the property title chain. The seller should have an original sale deed. It is compulsory under the law that the seller needs to have all the previous agreements.
  • Sanctioned Plan:  The seller also needs to have the approved building plan and occupation certificate by the local municipal authority or any other competent authority.
  • Society Documents: The seller must seek the permission of the relevant competent authorities (development authority or society) before selling the house. For example, if the seller lives in a gated community, then he/she must obtain a NOC (no-objection certificate) from the housing society or governing body.
  • Encumbrance certificate: This certificate is required as an indication of free title. This is because while buying a house or apartment, the buyer wants to ascertain no legal dues.
  • Sale Agreement: Lastly, but most importantly, after both the parties have arranged the documentation, the terms and conditions for the agreement for selling the property can be laid down. This agreement shall be the blueprint and precede the execution of the sale deed and hence is extremely important.

The procedure of selling your house

We've already discussed the documentation process, one of the most important parts of the procedure. There are other practical and/or legal aspects to the procedure, which includes the following:

  • Valuation of Your house: Make a good estimate of the value of your house. For this purpose, you can either consult a real estate agent or self-assess the property by researching the prevailing market rate in the society or locality where your house is located.
  • Find a buyer: The next step is to find a person who is ready to buy your house.
  • Intimate your intentions to the governing body: As mentioned already, you must seek approval from the housing society where the house is located by getting a NOC.
  • Prepare the house: You can now stage your house for potential buyers to visit. For this purpose, ideally, you should vacate the house and do renovation or repair work on the same.
  • Finally, list the property: Now, you can finally list the property for sale on online platforms or seek the help of brokers who can help you find buyers.

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Conclusion

Every seller needs to know such intricacies before proceeding to sell their house. Unless the seller is well-informed regarding such details, they can be taken for a ride by the buyer. The whole idea is to avoid being in that position as a seller.

Duplicate Land Registration Document Process
Property

Duplicate Land Registration Document Process

Moving houses is a pain! Often in the process of moving, we end up losing important documents. A land registration document as proof of ownership. Losing a land registration document may not bode very well for you. You do not have to worry as there is a provision to obtain a duplicate land registration document.

People who read this Article also Consulted a Lawyer about Property Registration process. 

How to get a duplicate land registration Document?

You should follow certain steps in order to get your duplicate land registration document. These steps are: 

  • File a police complaint

A land registration document is a crucial document. If it gets lost, then you should file a complaint with the police. The owner of the house should only file this complaint. He should also explain the complaint and state that the original documents were lost, misplaced, or stolen. Keep the copy of the complaint filed as it may be used to obtain the duplicate land registration document. 

  • Give an advertisement in the newspaper

Like with all lost things, one should publicize that a land registration document is lost and give the return address in the advertisement. If, within a certain time, no one comes forward to return the document, then you can proceed to the next step. 

  • Make an Application for the Certified Copy of the Land Registration Document

You will have to obtain a Form 22 application, either online or from the sub-registrar’s office. Fill this form and submit it with the sub-registrar to obtain a duplicate land registration document. If the document you have lost/misplaced is a patta record, you also have to apply it to the revenue office. 

  • A duplicate copy of the Land Registration Document

Once you have applied to receive the certified copy of the document, you need to pay a certain fee to the relevant department. After the fee has been paid, a duplicate copy of your land registration document shall be issued. Many would think that what if I had a photocopy, could I use that? The answer is no! You should always try to get a legally certified copy of the document which is lost. A land registration record is proof of ownership, and hence, you should always follow the due procedure of obtaining a duplicate copy of the land registration. 

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Documents Required to Obtain Duplicate Land Registration Copy

When you apply for a duplicate land registration copy, you should also accompany your application with certain documents. These documents are: 

  • Copy of FIR: As a first step, you should always file a complaint with the police. Keep the copy of the complaint with you and attach it with the application you file before the sub-registrar to get a duplicate copy of your land registration document. 

  • Copy of newspaper advertisement: You should also attach a copy of the advertisement you published in the newspaper along with your application form. This would enable the sub-registrar to know that you still have not found the lost/misplaced document despite trying. 

  • Copy of share certificates issued: Typically, you are given share certificates when you buy a piece of land. Keep them secure and attach copies of them when applying for a certified duplicate copy of land registration. 

  • Notarized undertaking: A notarized undertaking should also be given along with the application form. 

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Obtaining a duplicate copy of the land registration document should not be a harrowing experience if you know all the right steps to take. Remember to keep all your documents in order before applying for a certified duplicate copy of the land registration record.

All you wanted to know about Online House Registration
Property

All you wanted to know about Online House Registration

If you have bought or otherwise acquired a house, this transaction needs to be registered. House registration is necessary for two reasons: 

  1. Every State maintains land records. The land record of every piece of land records the persons who have rights over that land. Hence, the land record for your house will reflect who has ownership over that house. For instance, if you are the owner, then it will mention you as the owner; if you have an easement over the land, then it will mention you as an easement-holder, and so on. 

  2. Unless you have inherited the house, the transaction by which you have acquired the house will not take effect until the transfer deed is registered. If this is the case, you need to register the house to acquire legal rights over it in the first place. 

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House Registration Process

You will have to register your house with the local Sub-Registrar of Assurances, who has jurisdiction over the locality in which your house is located. 

Most states now allow some steps of house registration online. Depending on your State, a house registry online will be available for some (but not all) house registration procedure steps. For the remaining step[s] of the online house registry, you will need to visit the Sub-Registrar’s Office. Even in states which allow the maximum number of steps online, you have to make a single visit to the Sub-Registrar’s office.

Also read:  Stamp duty and registration charges are mandatory: Buyers should take utmost care on this front

The process typically involves the following steps:

  1. Book an appointment. You will get an appointment letter. 

  2. Pay the prescribed registration fees. You will get a receipt for the fees paid. 

  3. Present/Upload a copy of the transfer deed (the legal document by which you acquired the property, such as a Sale Agreement) and the identity proofs of the parties and witnesses. 

  4. The parties, and the witnesses, have to be physically present at the Sub-Registrar’s office at the date, and time, mentioned in the appointment letter. If all documents are in order, the Sub-Registrar will register the deed and return the original deed with the deed's registration number mentioned on it. 

Also read: How to get your property valuation done to ascertain a correct market price

Depending on your State, Steps 1, 2, or 3 can be done online. However, in every State, for Step 4, the parties and the witnesses must be present. 

The online house registration procedure for a rented house is the same as the online house registration procedure for any other house. 

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Online House Registration Check List

This online house registry checklist will help you ensure that all the requirements of the house registration procedure fulfilled: 

  1. Ensure that the transfer deed (the legal document by which you have acquired your house, such as a Sale Deed, a Gift Deed, etc.) is, in writing, signed by the parties, attested by at least two independent witnesses, and executed on stamp paper of value equal to the stamp duty payable on the transaction. 

  2. Pay the registration fees, and take a receipt. If your State allows this step to be done online, carry the receipt with you when you visit the Sub-Registrar’s office. 

  3. Some states may require you to present a true copy of the transfer deed. The Registration Rules of your State will specify this and tell you how to make a true copy (if a true copy is required).

  4. If this step is allowed to be done online in your State, upload copies of photographs, and identity proofs, of the parties and the attesting witnesses. In any case, carry copies, and originals, of all these documents at the time of visiting the Sub-Registrar’s office. 

  5. Ensure that all the parties and the attesting witnesses are present at the Sub-Registrar’s office on the appointment date and time. 

  6. The original transfer deed will be returned to you. If registration has been successfully done, ensure that the registration number is mentioned on the original deed with the Sub-Registrar's seal and signature

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Online Property Registration
Property

Online Property Registration

It is essential to register the transfer of property in India, under Section 17 of the Registration Act, 1908. This Act governs the registration of transfer of immovable property in India. Registration is compulsory because the person in whose name the property is registered is the rightful and legal owner of the property. Registering a property involves various aspects. Stamp duty is levied on the registration. Registration rules of each state are different and hence, the process of registration depends upon the state where the property is located.

The property description with the number it bears, area, pin code, the property type: flat, plot, agricultural, mode of ownership: purchase, gift, lease, owner’s personal details: Name, age, occupation, parent’s name, proof of property: Title deed, power of attorney, etc. are required at the time of registering the property.

 

Procedure for Registration of Property

Several states have their websites for online registration like Kerala, Odisha, West Bengal, Karnataka, Tamil Nadu, Rajasthan, etc. For instance, in Bangalore, there is Kaveri Online Services(https://kaverionline.karnataka.gov.in). You can register as a user on these property registration websites. You can enter the details, such as the date of execution of the sale deed, total number of parties, and other details as part of document registration. You also need to provide ID proof-details of witnesses and buyers, property value, and the nature of the property you seek to register.

You can download the registration form for your land and the application form, from the website of the concerned authority’s office in the state. You can also visit the office and obtain the registration and application form offline. Properties in both urban and rural areas come under the jurisdiction of the State Government and are managed under a Tehsil (taluka or mandal). The e-registration of property (housing or commercial rental) is also on similar lines. The process will only differ if the land is vacant or occupied.

 

You will need to furnish the following documents at the time of registering the property:

  • Identity proof of parties- Aadhar Card, PAN card etc.)
  • Two passport photographs of parties involved
  • Sale deed
  • Power of authority in case the party is representing someone else.
  • If a company is a party then power of attorney/letter of authority, along with a copy of the resolution of the company’s board
  • property card
  • Acknowledgement of payment of stamp duty
  • Registration fee

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Registration of Old Property

Registration of old property was slightly different than the properties bought recently. While the law governing was the same, the facilities of online procedure were not available. Registration should be completed within four months of execution of the transfer. Before technology was used, the documents submitted took four months to be returned from the registrar’s office. However, the new registration rules in 2019 and 2020 enable the documents to be returned the same day. It is easier to register a property in the present times than it was to register an old property.

Those who read this Article also Consulted a Lawyer about Property Registration process. 

Types of Land Registration

Registering property is the last and most important step after one has bought the property. If your property is not registered in your name then it would be difficult to prove ownership in the courts. If in the future some dispute arises then it is essential to have the property registered in your name. There are various ways in which you can register immovable property such as land:

1. Full Property Value: It is one of the simplest and most straightforward ways to execute a property registry. You register your property at the full value which you have paid for the same.

2. Property Value is Higher than Circle Rate: You can register at the full property value if the value is higher than the circle rate.

3. Property Value is Less than Circle Rate: You may register a property which is less in value than the circle rate. However, the difference between the circle rate and the actual sale value of the property is considered as income and is taxed at rates appropriate to the income slab.

4. Bank Valuation: While In some cases, banks insist borrowers register the property at either full property value or higher value.

5. Sale Certificate: Applicable only in the case of bank auction properties.

6. Undivided Share Value/Sale Agreement Value: To register a property at Undivided Share (UDS) is the most common practice. For an under-construction property, the builder signs two agreements with the buyer which are the Sale Agreement and Construction Agreement. The construction agreement is towards the construction cost of the flat/property. Builders register the property at sale agreement value or UDS. This practice is adopted to save stamp duty costs.

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New rules for Property Registration in India 2020

The documents to be registered must be presented in four months starting from the registration date. As of 2020, due to computerization, copies of the documents are available on the same day. If a property is not registered, it will not serve as valid evidence in court. Unregistered property has no legal validity. In case the property is acquired by the government one cannot be entitled to compensation if the property has not been registered.

 

Stamp Duty Charges & Property Registration in India, 2020

Stamp duty which is a tax imposed by the government on the parties dealing in property transfer and is charged by the central and state government. The purchasers must pay the stamp duty charges on the agreement of sales that falls under Section 3 of the Indian Stamp Act, 1899.

Stamp Duty charges differ upon state rules also depends upon:

  • Property Status: Old or New
  • Property Location: rural area, City area, etc.
  • Owner’s age
  • Owner’s gender
  • Property utilization: Commercial or Residential
  • Property type: Flat or house

 

Property Registration Act

If you have entered into a transaction for the sale of immovable property and the value of such property exceeds INR 100, You need to register the same. Section 17 of the Registration Act, 1908 makes such registration compulsory. The Registration Act also provides for which documents are essential for the registration of property and which are optional. Fees for registration vary according to the state. If a property is not registered then it cannot be produced in the court as proof of ownership. Property should ideally be registered within four months of execution of the transfer. A maximum condonation of further four months may be allowed with the penalty for delay in registration. But the document needs to be presented for registration within eight months of execution of the transfer. 

Property registration is a complex procedure and ideally, help from a lawyer should be taken for the same. You should not delay registering your property and get the same registered within the stipulated time.

DDA Flat Registration Scheme is a yearly "affordable housing" event
Property

DDA Flat Registration Scheme is a yearly "affordable housing" event

This post is one of the most frequently talked about topics of discussion when it comes to affordable housing. Yup, you guessed it right, we are talking about the Delhi Development Authority (DDA) Housing Scheme that is announced by the government on a yearly basis. This topic garners keen interest not only because affordable houses are offered to applicants via lucky draw but the scheme also covers a wide stratum of people, whether they are from the general category or from economically weaker groups or the reserved sections of the society like SC, ST, OBC, etc. As we progress in this post, you will have more insights on several aspects related to the DDA Flats Registration Scheme 2021 – what is the scheme about, its benefits and the general eligibility conditions, etc.

What is the DDA Flat Housing Registration scheme?

Briefly mentioning, under the Pradhan Mantri Awaas Yojna, DDA recently announced the housing registration scheme for the year 2021 wherein the authority has put for sale, more than 1300 flats of various types located at different locations in New Delhi. The sole aim of the scheme is to enable people to buy affordable houses as the houses being offered by DDA are priced cheaper compared to the houses sold by private real estate developers.

The ongoing pandemic has seen massive digitization of government services. DDA Housing Registration Scheme for 2021 has also followed the same path. The authority has completely automated the flats registration process. Some of the following online services are likely to be provided by the DDA to potential house buyers through its Awaas software:

  • Initiating the Online flat registration process by prospective buyers

  • Filling up the online flat registration form

  • Paying flat registration charges and fees

  • Conducting draw of lots under the supervision of authorized government officials

  • Issuing allotment and/or possession letters to the allottees

An important point to note in this scheme is that the allottee(s) may need to visit the office of the DDA for completing the conveyance deed execution process in his or her name.

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Type of Flats being offered under the scheme and related registration charges

There are broadly four categories or types of flats that have been put for sale by the DDA under the current scheme. They are:

  • Higher Income Group (HIG) – The registration charges or application amount to be paid for this category of flats are Rs. 2 Lakhs.

  • Middle Income Group (MIG) – The registration charges or application amount to be paid for this category of flats are Rs. 2 Lakhs.

  • Lower Income Group (LIG) – The registration charges or application amount to be paid for this category of flats are Rs. 1 Lakh.

  • Economically Weaker Section (EWS) - The registration charges or application amount to be paid for this category of flats are Rs. 25 Thousand.

Some general conditions to be noted are:

  • The application once submitted cannot be withdrawn.

  • The spouses (husband and wife) can apply either separately or jointly with their spouse(s). However, if they apply separately/individually and both applications are selected in a lucky draw, only one flat will be allotted as per regulations.

  • The allotment of flats will happen via draw of lots, the date of which will be announced by DDA in due course.

  • The date of allotment will also be announced soon by the DDA.

  • The possession of flats will be given after allotment and receipt of the first payment by the DDA.

  • The DDA will initiate the refund of payment for an unsuccessful draw after 30 days from the date of draw of lots.

  • It is advisable to regularly visit the DDA website for information on the ‘lucky draw’.

Those who read this Article also Consulted a Lawyer about DDA Schemes. 

What are the eligibility conditions for putting a DDA housing scheme application?

As per DDA, any applicant interested in putting up an application needs to fulfill the following criteria:

  • Only a citizen of India can apply for the scheme.

  • Applicant must be over 18 years of age.

  • Applicant must not be an existing leasehold or freehold owner or joint owner of residential house or plot of size 67 square meters in Delhi, New Delhi, or Delhi cantonment.

  • Applicant must possess an active bank account.

  • Applicant must also have PAN Card.

  • Annual income of applicant applying under EWS category must not exceed Rs. 3 lakhs.

  • Household income of EWS category applicants should not be more than Rs. 10 lakhs.

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What documents are required for submission along with the application?

The applicant needs to submit the self-attested copies of the following documents:

  • Address Proof that may include documents like Driving License, Passport, Voter ID, Electricity Bill, Aadhaar Card, etc.

  • PAN Card

  • Bank Statement or Passbook

  • Income Tax Return filed for the assessment year

  • Reserved Category certificate, as applicable, issued by a competent government authority

Conclusion

The DDA Housing Scheme is a good opportunity for all those who are planning to buy a reasonable house in Delhi. The scheme has been created keeping in mind the budgetary constraints of people who dream to own a home. With several nationalized government and private banks providing housing loans at prevailing interest rates, the scheme definitely has the potential of being economical for the common citizen. We suggest you evaluate all your options including the legalities involved and register before the deadline ends if it fits your bill.