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What is a Sale Deed?
A sale deed is a concluding part of a property-purchase process. It is an important instrument in writing, which legally transfers property from one person to another. The sale deed is made for the sale or purchase of land or any construction on the land. The person selling the property is called as the transferor or seller and the person buying is the transferee or the buyer.
The sale deed works as the proof of the buyer owning the said property. The deed also contains many information such as price of the deal, terms of the transactions, mode of payment, original documents required for the transaction, and the time for handing over the property. The deed also contains the details of all the parties involved in the deal. The deed also mentions the details of the property, which includes the total plot area, exact address, identification number, and construction details.
Buying or selling of properties is not legal in India unless the parties involved sign on the sale deed in front of at least two witnesses. Sale deed is governed by the Registration Act, 1908.
What to keep in mind before signing a sale deed
A buyer of land or any kind of property must be aware of all the details related to the property. The buyer must ascertain whether the title of the property is free of any mortgage, any claim on the property, or any kind of burden which might put the buyer at a loss. Verification of all the details related to the tile of the property must be done by the buyer from the registrar’s office. Once it is ensured that the property is free of any encumbrances, the buyer must then check whether all the dues such as water, electricity bill have been cleared.
What is the difference between sale agreement and sale deed?
Sale agreement is a promise that the property will be sold on certain terms and conditions agreed by the parties involved. It is basically a contract specifying terms and conditions on which the ownership of the said property will be transferred in the future. Sale deed is the conclusion of the property-purchase process where the property is sold and ownership is transferred.
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