Saturday, 7 November 2015

Sale deed: Everything you need to know

When looking for a home, the most daunting task is finding the right property to buy. You may have to choose a location, a builder, a project and then a home that suits your family's needs. But once you have done that, you then have to set aside some time for the paper work.

While I recommend that you seek advice from a good property lawyer who will look through all the documents and make sure your interests are protected, you should also understand the basics of the paperwork in order to be a smart customer.

Let's start this week with understanding what a sale deed is and how it is drafted. The sale deed is the most important legal document for the purchase of property. Without the signed and notified sale deed, a property cannot be sold. This deed proves the transfer of property from one owner to another and is as a result, proof of your ownership of the property.

It gives you the right to sell or transfer the title of the property as you choose fit and it states the seller no longer has any hold over the property. In case of legal proceedings, it is normally the sale deed that the court refers to rather than just the title deed.

Sale Deed: Sale deed format and content:

Here is a look at the details of the sale that should be included in your sale deed:

- The deed, like most legal documents, will carry the name, PAN details and address of the seller and buyer. It should also include very clear details of the property, the address, the location,  the identification number and the total carpet area.
- One of the most important statements that a sale deed has is the declaration from the seller to certify that the property under sale is free from all encumbrances and is without any lien.
- Apart from this, the deed should also include a declaration that the seller has paid all loans on the property in full and no loans are due on the property.
- The deed should also clearly list out the total amount being paid for the home, the advance, the mode of payment and details of transactions.
- The deed will also list any new loans that the buyer has taken on the home to finance the deal.
- The deal will finally include any receipts of payments made in advance and the clear date of possession of the property by its new owners.
- Once the sale deed is drafted and agreed upon by both the parties and their legal advisors, the deed should be signed and registered in the sub-registrar's office in the presence of witnesses.

Remember to make sure you get several copies of the document as a buyer, especially if you have taken a loan because the original will be taken by the representative of the lender or the bank.

Source: PropertyatNeoDevelopers.Wordpress.Com

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