A sale deed is also named as conveyance deed. It is a critical document in property transactions. It is a legal document and evidence that the sale of a land and property has been made in favor of the buyer from the seller. It is also a record that the buyer is the absolute owner of the stated property.
It is vital that the NRIs must understand – how a sale deed is executed:
- The deed is executed after the execution of the contract to sell, and after complying with various terms and conditions described in the agreement.
- The draft sale deed is made on a non-judicial stamp paper as directed by the Stamp Act of the state concerned. The stamp paper covers the terms and conditions of the sale and contains the details of the people, the property, the sale amount, the dates, the advance payment, the method of payment and the time for handing over the original certificates as well as the possession of the property etc.
- Apart from providing the complete details of both the seller and the purchaser, the agreement is signed and executed by both the parties. Details are describing the specifications of the property — identification number, details of construction, a total area of the plot, the total amount to be paid, the instruments through which such transactions will be made — are also declared.
- The earnest funds paid by the buyer also find a specifying in the agreement.
- Apart from giving a detailed list of documents executed by him in favor of the purchaser, the seller also verifies that the property under sale is free from any hindrance.
- Subject to an agreement between the parties, payments such as property tax, electricity charges, water charges, society maintenance charges, etc., ought to be paid by the seller prior to the performance of the sale deed.
- Once all the necessary terms and conditions have been agreed upon, the sale deed is executed. The principal document for the transfer of ownership of property, it is executed by all the parties, and all pages of the sale deed document are signed. It is mandatory that the deed should be signed by at least two witnesses, providing their full names and addresses.
- As per the Registration Act, the sale deed is registered at the sub-registrar office, where it is mandatory for both parties to be in attendance, along with original documents. For any reason, if the buyer can’t be present at the sub-registrar office on the given day, he can provide a power of attorney to his agent to act on his behalf.
- After the sale deed has been approved by both the parties, the documents should be offered for the registration within 4 months from the date of execution. If it is not done, a grace period of another 4 months is given on payment of some fine.
- Typically, the buyer is responsible for the stamp duty as well as registration charges.
Also Read About:- Investment Options for NRIs in India