If you are a first time home buyer, it is important for you to acquaint yourself with various aspects of buying a house. There is a number of details that go into consideration while making the final deal. One such important aspect is the legal documentation. The sale deed is the most prominent document from the seller to the buyer.
What is a Sale Deed?
A sale deed is the primary legal document signed at the time of sale of the property. It is the evidence of the complete ownership of the property, wherein, the seller signs it to transfer the rights of ownership to the buyer. The signing of the sales deed signifies the agreement of both parties to the terms and conditions mentioned in the sale agreement. Also, it denotes that the process of sales has been completed with the mutual understanding of buyer and seller.
Comprehending Sale Deed
For a sale deed to be valid, the document has to be drafted on the non- judicial stamp paper as per the respective state government rules. It has to be duly signed by both the parties, that is, seller and buyer in the presence of a minimum of two witnesses. Let’s understand the sale deed:
Agreement of sale and transfer of title
This document consists of the terms and conditions of the sale transaction by the seller to the buyer. It includes the amount on which the sale is being made and the date of making the full payment. This document is followed by sale deed which is prepared at the time of actual transfer of the property. The actual transfer is done on the date of full payment of the agreed amount by the buyer to the seller.
Details of the property involved
Sale deed should contain a complete description of the property involved. It is required to have the location of the property.
Details of the parties involved
The sale deed contains the complete details of the buyer and the seller. It includes the full name of the parties, their complete addresses, and age of the parties. In absence of any of the information or incomplete information, sale deed would stand invalid.
Sale deed is registered as per the Registration Act 1908 as the final step. Both the parties close the deal at registrar’s office along with two witnesses and required documents.
Sale deed is the main legal document of making the sale and transferring the ownership from the seller to the buyer. This document could be used by the buyer to make further sale. This document gives absolute ownership of the property to the buyer. All statutory payments like cess, water and electricity charges, property tax, maintenance charges etc are to be paid in fuller by the seller before the execution of sale deed. Further, the seller needs to acquire the needed clearances, the permission of transfer or sale and any other required approvals before sale deed.
The sale deed needs a careful assessment before execution. It is important for the buyer to go through all the details of the sale agreement and sale deed to avoid any hassles at the later stage. Ambika Realcon is one of the credible builders and lives up to its reputation of providing safe and comfortable abode for you and your family.