What is a Sale Deed?

Sale deed is a legal document that contains details of transfer of property ownership from a seller to a buyer. This is one of the most valuable legal documents while purchasing or selling a property. This document needs to be registered mandatorily and is governed by the Registration Act.

Importance of Sale Deed

Sale deed is an important document for both the buyer and the seller. Through the sale deed, the seller transfers the rights of ownership to the buyer. This enables the buyer to acquire sole ownership of the property. This document provides an ownership proof of the property to the buyer, thus enabling the buyer to carry out further sale
The sale deed needs to be signed between the seller and the buyer, for purchase or sale of a property, to be legally completed. A property transaction cannot be completed without getting the sale deed signed by both the seller and the buyer. Signing a sale deed implies that both the seller and the buyer accept the terms and conditions defined in the agreement.

Sale Deed vs. Title Deed

A sale deed is a legal document that transfers the ownership of the property from the seller to the buyer, during a sale. When a property is sold, the sale deed confers title to the buyer.
A title deed is a legal document that can also be used to transfer the ownership of a property from one person to another in instances such as a gift, exchange, mortgage, etc. A title deed is useful when a person does not want to sell a property, but may want to add another person to the title. A title deed generally includes a description of the property that is being sold and the name of the person who legally owns the property. It can also have names of multiple owners.

How to execute a Sale Deed?

•    Before executing the sale deed, a buyer should verify that the property is free from any encumbrance. This information can be verified from the registrar’s office.
•    The seller should settle any existing loans and clear dues such as property tax, water tax, maintenance charges, etc.
•    The seller should also obtain if any clearance or approval is required to sell the property.
•    The buyer bears the stamp duty charges for the sale deed.
•    The sale deed should be registered at the sub-registrar’s office in the presence of the buyer, seller and a minimum of two witnesses.
•    All the pages of the deed should be signed by both the parties
•    If the buyer is unable to be present due to unavoidable reasons, a person nominated by him/her, empowered with power of attorney can execute the deed.

Types of Fraud in Sale Deed

Real estate frauds are on the rise and fraudsters target both the buyer and the seller. It is important for you to be vigilant when planning to buy or sell a property. Some of the common types of frauds during the sale deed process are:

•    Assuming the role of the property owner and trying to sell the property without the knowledge and consent of the original property owner.
•    Pretending to be the power of attorney for either the buyer or the seller and carrying out unauthorized transactions.
•    Providing incomplete or non-existent contact details while drafting or signing the sale deed. Sometimes the fraudster may give only a mobile number or an email address and may not give the physical address. It is important to check the validity of contact details.
•    Changing the address during the course of the transaction without a proper reason.
•    Trying to sell a property when there is a mortgage or lease on it.
•    The buyer and seller should check that the title flows in the parent documents are correct and does not miss any previous buyer or seller. This is a common type of fraud.

Understanding the niceties of the sale deed, differences between the different types of deeds and agreements, and frauds will help you to plan a smooth transaction and to mitigate any fraudulent activities.

Name : shakunthala

Law Firm Name : shetty&Associates

Country : India

City : Bangalore

State : KARNATAKA

No Answers Found