Requirements of Sale Deed:
- Title: It explains what kind of document is it. It is mentioned in bold at the top of the Document.
- Date Of Execution: Date of execution must be mentioned after titling the document and before the main contains.
- Parties Details: Proper Information of Parties to The Deed including their names, age and addresses of for transaction
- Description of the property: A valid sale deed must contain full description of the property which is the subject matter of sale. It must include identification number, total plot area, construction details as well as its location with its surrounding areas. A schedule of the property must be included in the sale deed which will define the exact location where the property is actually situated.
- Agreement: An agreement for sale is the main requirement of the drafting of the valid sale deed and both the parties must mutually settle the terms and conditions of the agreement so that it will not affect the rights of the parties. A sale deed always precedes agreement to sell.
- Consideration clause: A sale deed must include the clause stating the sale consideration/amount as agreed between the seller and the buyer which has to be paid by the buyer to the seller on the execution of sale deed. A sale amount should be clearly stated in sale deed as agreed in the agreement to sell so that there should not be any onus on the parties to the transaction.
- Mode of payment: It is always the buyer who has to decide that how he is going to pay the sale consideration amount whether by Cash /Cheque/ Demand Draft and the same has to be agreed by the seller.
- Advance payment: If there is any transaction of token amount paid by the buyer to the seller then it has to be clearly mentioned in the sale deed, and how much is the remaining balance to be paid on the execution of the sale deed.
- Property Title: A sale deed should contain the clause explaining title flow of the property. It must include how the property is legally given title to the purchaser from its very original owner.
- Possession Clause: The possession of the immovable property will be transferred to the purchaser by the vendor once the registration process is completed. A clause in the sale deed must state when there will be actual delivery of the possession.
- Indemnity provisions: ear all the statutory charges i.e. property tax, electricity charges, water bills, cess, society charges, maintenance charges and all other charges relating to the property before the execution of the sale deed. In case there is any encumbrance on the property, the seller needs to repay the loan amount and get the property papers cleared of the encumbrance. It is the duty of the buyer to verify the encumbrance status from the office of the registrar.
- Default clause: An agreement for sale of immovable property should include the clause stating if there is any default by the vendor or the purchaser then the party who rescinds the contract need to pay damages to the other party for the breach of contract so that it will not affect to the execution of the sale deed.
- Execution: On preparing Sale Deed, all the parties to the deed shall execute it by affixing their thumb impression or full signature with photo. Each page should be signed by the seller and buyer. Execution of the sale deed requires to be witnessed by two witnesses.
- Registration: According to Section: 17 of ‘The Registration Act, 1908’, the registration of a tangible immovable property is compulsory if the value of the respective property exceeds rupees 100/- and it is the registration of the property which makes the sale valid. For getting the registration done both the parties must be present before the jurisdictional sub-registrar office with the original documents within four months from the date of execution. A stamp duty has to be paid by the purchaser to the sub-registrar for getting the registration done. A certified copy of the registration document to be obtained for the future reference.
- Original documents: Once the property gets registered under the registration act all the original documents of the sold property to be hand over by the seller to the purchaser. All the statutory rights along with ownership, possession, title, interest will get vested in favour of the purchaser.