What is Sale?
As per the Transfer of Property Act, Sale is a transfer of ownership in exchange for a price paid or promised or part-paid and part promised. The transaction of sale involves two parties – buyer and seller. The seller sellers tangible or intangible goods/services or assets in exchange for money from the buyer.
What is a Sale Deed?
Sale deed is a legal agreement between the buyer and the seller. It contains all the terms and conditions upon which the two parties have reached to an agreement for the sale of property. The sale deed is required to be signed by both the seller and the buyer.
Advantages of sale deed
- Legal protection
- Address proof
- Secures unexpected expenses
- Defines the area of the property
- Deductions up to Rs. 2 lacs can be claimed
When is sale deed required?
- When the seller intends to sell his property to the desired buyer.
- On signing of the sale deed, the sale comes to an effect.
Documents required for sale deed
- Name and address of the buyer and seller
- Detailed description of the property
- Total payment to be made, mode of payment, date when the payment is to be made
- Date of handing over of property documents
- Other terms and conditions of the sale
As per law, the buyer has to pay the stamp duty and registration charges. However, any other arrangement with regard to the sharing of stamp duty and registration charges between the buyer and seller can also be incorporated in the Sale Deed.
Yes, according to the Registration Act, 1908, it is mandatory to get a sale deed registered in relation to immovable properties whose value is more than Rs. 100/-.
Once the document has been registered it can’t be canceled unless through an order of the court.
A sale deed is executed after the execution of the agreement to sell and after compliance of various terms and conditions detailed in the agreement to sell as agreed upon between the buyer and seller. It can only be executed by a person who has a legal and marketable title over the property that is to be transferred under the sale deed.