ABOUT A SALE DEED
Sale Deed is also known as conveyance deed. This is the document by
which the seller transfers his right to the purchaser, who, in turn, acquires
an absolute ownership of the property. This document is executed
subsequent to the execution of the sale agreement and after compliance
of various terms and conditions detailed in the sale agreement.
Before the execution of the sale deed the title of the seller is to be
established beyond doubt. Copies of the documents of title must be
scrutinized by an advocate, well versed and experienced in property
dealings.
If there is any encumbrance on the property, such encumbrance is to be
cleared by the seller at his cost.All statutory payments like property tax,
water and power charges and any other payments due on the property
should be cleared before the execution of the Sale Deed. Any previous
charges or mortgage should be clear before execution of the Sale Deed.
Clearances, and permissions required to be obtained by the seller should
be obtained prior to execution of the sale deed.Latest encumbrance
certificate of the property, subsequent to the date of the sale agreement
up to the proximate date of sale deed should be obtained, and such
certificate should be of nil encumbrance.All the persons having interest in
the property should be made parties to the deed. Particular attention
needs to be paid in case of purchase of properties from a Limited
Company, Partnership Firm, Hindu Undivided Family, Trust, Power of
Attorney Holder and Minor.
Draft Sale Deed
A draft Sale Deed, containing full details of the parties, advance amount
paid, mode of balance amount payable, receipt of the balance amount by
the seller, handing over the original documents of the property, handing
over the possession of the property, handing over the authorization letter
to transfer power and water meters, signing of the application for transfer
of khatha, title of the seller of the property, indemnifying the purchaser in
case of defect in the title, easement rights, will be prepared by the
purchaser’s advocate. Such draft Sale Deed should be captioned as draft
Sale Deed and shall be signed by the purchaser’s advocate.
A copy of the draft Sale Deed will be given to the seller for his approval.
The seller and his advocate will verify the draft sale deed and approve it,
or may suggest suitable deletions, additions or amendments. The purpose
is to bring forth the correct intention of the parties to the Sale Deed.
On approval of the draft Sale Deed, the same has to be prepared on a
quality or a document paper. In Karnataka it may be prepared on good
quality paper like bond paper or green paper and the stamp duty may be
paid by way of demand draft or pay order or cash. The exact amount of
stamp duty should be ascertained from the Sub Registrar office. Purchaser
is liable to pay the Stamp duty as per value stated in the documents or as
per the Sub- Registrar office value whichever is higher.
Execution
After the Sale Deed is prepared all the parties to the deed shall execute it
by affixing full signatures. Each page should be signed by all the sellers.
Any overwriting, cancellations, erasures and additions have to be
authenticated by full signatures of the parties.The execution of the Sale
Deed requires to be witnessed by two witnesses. The witnesses shall give
their full particulars and addresses.
Sale Deed of immovable property of value more than Rupees one hundred
needs compulsory registration. The duly executed sale deed should be
presented at the jurisdictional sub-registrar office. All the parties,
including the confirmation witnesses shall be present at the time of
registration and admit the execution. Purchaser also has to be presented
for the execution of the documents at the Sub Registrars office. In case
the purchaser is not in position to be present before Sub Registrar, he can
give Power of Attorney to any of his persons to sign and present the
documents on his behalf. In case seller signs the Sale Deed, it is
compulsory that through the registered Power of Attorney holder only can
represent for him to present the documents before the Sub-Registrar.
Registration
2 In Karnataka, the Sub-Registrars office, take the photos of purchaser,
vendors, witness and also their thumb impressions and print the same on
the Sale Deed.The vendors has to produce all the original documents
pertaining to the property to the purchaser. If the property is divided into
one or more portions, the seller has to give certified copy or Xerox copy of
the documents to the purchaser and has to give declaration to that effect.
Generally, the larger portion holder should get the original documents.
There is a time limit for presenting the documents for registration. The
time limit is four months from the date of execution. Thereafter a grace
period of another four months is allowed on payment of penalty. The
maximum penalty is ten times of registration charges.
At times, the registering authorities may dispute the stamp duty paid. In
such cases, the purchaser has an option of paying the additional stamp
duty by way of cash or payorder. The purchaser may contest it in which
case the Sub Registrar will do the pending registrations and send it to the
Registrar of Under Valuation to arrive at proper Stamp Duty.
Parties have to quote their Income Tax Permanent Account Number in
case the transactions are done in cash for the property which values more
than Rs 5,00,000. Parties, who have not yet been allotted Permanent
Account Number, will have to file Form No.60 or Form No. 61 in case of
Agriculturists.
The purchaser’s advocate has to take all precautions while preparing Sale
Deed. It is a most important document and decides the fate of the
purchaser. The purchaser has to preserve the Sale Deed very safely.
More,
Advocate S. Selvakumar
Sale Deed is also known as conveyance deed. This is the document by
which the seller transfers his right to the purchaser, who, in turn, acquires
an absolute ownership of the property. This document is executed
subsequent to the execution of the sale agreement and after compliance
of various terms and conditions detailed in the sale agreement.
Before the execution of the sale deed the title of the seller is to be
established beyond doubt. Copies of the documents of title must be
scrutinized by an advocate, well versed and experienced in property
dealings.
If there is any encumbrance on the property, such encumbrance is to be
cleared by the seller at his cost.All statutory payments like property tax,
water and power charges and any other payments due on the property
should be cleared before the execution of the Sale Deed. Any previous
charges or mortgage should be clear before execution of the Sale Deed.
Clearances, and permissions required to be obtained by the seller should
be obtained prior to execution of the sale deed.Latest encumbrance
certificate of the property, subsequent to the date of the sale agreement
up to the proximate date of sale deed should be obtained, and such
certificate should be of nil encumbrance.All the persons having interest in
the property should be made parties to the deed. Particular attention
needs to be paid in case of purchase of properties from a Limited
Company, Partnership Firm, Hindu Undivided Family, Trust, Power of
Attorney Holder and Minor.
Draft Sale Deed
A draft Sale Deed, containing full details of the parties, advance amount
paid, mode of balance amount payable, receipt of the balance amount by
the seller, handing over the original documents of the property, handing
over the possession of the property, handing over the authorization letter
to transfer power and water meters, signing of the application for transfer
of khatha, title of the seller of the property, indemnifying the purchaser in
case of defect in the title, easement rights, will be prepared by the
purchaser’s advocate. Such draft Sale Deed should be captioned as draft
Sale Deed and shall be signed by the purchaser’s advocate.
A copy of the draft Sale Deed will be given to the seller for his approval.
The seller and his advocate will verify the draft sale deed and approve it,
or may suggest suitable deletions, additions or amendments. The purpose
is to bring forth the correct intention of the parties to the Sale Deed.
On approval of the draft Sale Deed, the same has to be prepared on a
quality or a document paper. In Karnataka it may be prepared on good
quality paper like bond paper or green paper and the stamp duty may be
paid by way of demand draft or pay order or cash. The exact amount of
stamp duty should be ascertained from the Sub Registrar office. Purchaser
is liable to pay the Stamp duty as per value stated in the documents or as
per the Sub- Registrar office value whichever is higher.
Execution
After the Sale Deed is prepared all the parties to the deed shall execute it
by affixing full signatures. Each page should be signed by all the sellers.
Any overwriting, cancellations, erasures and additions have to be
authenticated by full signatures of the parties.The execution of the Sale
Deed requires to be witnessed by two witnesses. The witnesses shall give
their full particulars and addresses.
Sale Deed of immovable property of value more than Rupees one hundred
needs compulsory registration. The duly executed sale deed should be
presented at the jurisdictional sub-registrar office. All the parties,
including the confirmation witnesses shall be present at the time of
registration and admit the execution. Purchaser also has to be presented
for the execution of the documents at the Sub Registrars office. In case
the purchaser is not in position to be present before Sub Registrar, he can
give Power of Attorney to any of his persons to sign and present the
documents on his behalf. In case seller signs the Sale Deed, it is
compulsory that through the registered Power of Attorney holder only can
represent for him to present the documents before the Sub-Registrar.
Registration
2 In Karnataka, the Sub-Registrars office, take the photos of purchaser,
vendors, witness and also their thumb impressions and print the same on
the Sale Deed.The vendors has to produce all the original documents
pertaining to the property to the purchaser. If the property is divided into
one or more portions, the seller has to give certified copy or Xerox copy of
the documents to the purchaser and has to give declaration to that effect.
Generally, the larger portion holder should get the original documents.
There is a time limit for presenting the documents for registration. The
time limit is four months from the date of execution. Thereafter a grace
period of another four months is allowed on payment of penalty. The
maximum penalty is ten times of registration charges.
At times, the registering authorities may dispute the stamp duty paid. In
such cases, the purchaser has an option of paying the additional stamp
duty by way of cash or payorder. The purchaser may contest it in which
case the Sub Registrar will do the pending registrations and send it to the
Registrar of Under Valuation to arrive at proper Stamp Duty.
Parties have to quote their Income Tax Permanent Account Number in
case the transactions are done in cash for the property which values more
than Rs 5,00,000. Parties, who have not yet been allotted Permanent
Account Number, will have to file Form No.60 or Form No. 61 in case of
Agriculturists.
The purchaser’s advocate has to take all precautions while preparing Sale
Deed. It is a most important document and decides the fate of the
purchaser. The purchaser has to preserve the Sale Deed very safely.
More,
Advocate S. Selvakumar
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