Term Of The Day: Sale Deed
When you buy or sell property, the transaction is not legally valid without the buyer and seller signing the sale deed in the presence of at least two witnesses. Governed by the Registration Act, 1908, sale deed is the most important document for while selling or purchasing property in India.
PropTiger Explains Sale Deed
Typically, the sale deed is signed by both parties in a transaction when they are satisfied with the terms and conditions mention in the sales agreement, and is willing to comply with it. Before executing the sale deed, both the buyer and seller should sign the agreement to sell on a non-judicial stamp paper. The value of the sale deed varies from state to state, according to the Stamp Act of Indian states. The sale deed confers title to a piece of property.
While selling or purchasing real estate in India, the sale deed would mention every detail that is required to carry out the purchase or sale of a property. The sale deed would have the full names of the buyer and the seller, their addresses, details of the property which is being sold, the location where the property exists, the total area of the property and details regarding construction of the property. The sale deed would also have detailed information on the payment made by the buyer, at various points in time.
For executing the sale deed, the seller of the property should not have any dues pending, and should have complete rights over the property. The loans taken with the property as a collateral should be paid off completely before signing the sale deed. Such details can be verified from the sub-registrar office. The sale deed is registered at the office of the sub-registrar under whose jurisdiction the locality is.
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