CONTENTS OF THE DEED
A Deed is a legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to posses it. A Deed, also known as an instrument in solemn form, is the most formal type of private instrument requiring not only the maker of the deed (grantor, transferor) but also attesting witnesses as signatories. Deeds include Conveyances, Commissions, Licenses, Patents, Diplomas, and conditionally Power of Attorney, if executed as deeds.
A Sale Deed is one of the most valuable legal documents in a purchase or sale of a property. It is governed by the Registration Act and is an important document for both the buyer or the transferee and the seller or the transferor.
A Sale Deed acts as the main legal document for evidencing sale and transfer of ownership of property in favour of the buyer, from the seller. Further, it also acts as the main document for further sale by the buyer as it establishes his proof of ownership of the property.
The purchase or sale of property is not legally complete until a sale deed is signed between the buyer and seller but it is signed only after both the parties are satisfied and comply with the terms and conditions as said in the agreement.
A Sale Deed is prepared when both the parties agree to prepare a draft sale deed on a non-judicial stamp paper whose value is prescribed by the Stamp Act of the respective state.
CONTAINS OF SALE DEED
A Sale Deed has almost all the details to carry out the purchase or sale of the property. The Sale Deed form includes :
• Name of parties involved for the property purchase.
• Address and description of the property.
• Purchase price and deposits.
• Conditions that must be met before the offer can take effect, such as :
• Obtaining a Mortgage/Bond/Home loan.
• Inspecting the property.
• Freeing the property of encumbrances.
• Other conditions of the offer, such as:
• Broker fees.
• Any fixturs to be included.
• Date of closing of the Deed of Sale.
• Deadline for accepting offers.
The Sale Deed is registered at the jurisdictional sub registers office. Apart from the buyer and seller of the property the witnesses should also be present at the time of registration.
Usually the buyer would pay the stamp duty and the registration charges and the seller on his part should ensure that all payments related to the property such as property tax, cess,water and electricity charges, and others was paid before the sale deed was executed.
Therefore, if there is one important thing that gives legal protection to ownership of a property is the Sale Deed.