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Sale Deed Drafting

What is Sale Deed?

A Sale Deed is a legally registered document that finalizes the transfer of property ownership from the seller to the buyer. It serves as conclusive proof of ownership and is required for legal possession of the property.

What is Sale Deed?

A Sale Deed is a legally registered document that finalizes the transfer of property ownership from the seller to the buyer. It serves as conclusive proof of ownership and is required for legal possession of the property.

Procedure for Drafting & Executing a Sale Deed

Purpose

To determine the follow up procedure after drafting of the sale deed and handing it over to the client.

Context

Sale Deed is an important document which has to be registered at the Sub Registrar Office mandatorily, it is necessary to legally transfer ownership of a property from seller to buyer.

Documents Required

  1. Sale Deed
  2. Property Tax Receipts
  3. Identity and Address Proofs of Seller and Buyer
  4. Power of Attorney (if applicable)
  5. Encumbrance Certificate
  6. Building Completion Certificate
  7. No Objection Certificate (NOC) from Relevant Authorities
  8. Stamp Duty Payment Receipt

Stamp Duty and Registration Fees

  1. Stamp Duty: Calculated based on the property’s value and varies across districts in Delhi NCR.
  2. Calculation on basis of rate: NGDRS : National Generic Document Registration System (delhi.gov.in); https://revenue.delhi.gov.in/revenue/e-sub-registrar;
  3. Registration fees: a fixed percentage of the property’s value
  4. Payment: it can be paid online or through authorized stamp vendors. Registration fees which is usually 1% is paid at the time of registration, it can be paid online depending on the place.

Registration at the Sub-Registrar's Office

  1. Appointment: Schedule an appointment with the Sub-Registrar's Office.
  2. Submission of Documents: Submit the original Sale Deed, along with all required documents and the stamp duty payment receipt.
  3. Verification: The Sub-Registrar will verify the documents and ensure that the transaction is legal.
  4. Payment of Registration Fees: Pay the registration fees at the time of registration.
  5. Registration: The Sub-Registrar will register the Sale Deed in the property records.
  6. Registration Certificate: A registration certificate will be issued to the buyer.

Post-Registration Steps

  1. Mutation: Update the property records with the new owner's name.
  2. Transfer of Utilities: Transfer ownership of electricity, water, and other utility connections.
  3. Possession: The buyer can take possession of the property after the registration is complete.

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Benefits of a Sale Deed

Confirms Legal Ownership: Establishes the buyer as the lawful owner of the property.
Avoids Future Disputes: Legally binding and enforceable in court.
Enables Mutation & Property Tax Transfer: Required for updating municipal records in the buyer’s name.
Essential for Loan & Resale Transactions: Necessary for availing loans or reselling the property.

FAQ's

1. Is registration of a Sale Deed compulsory?

Yes, under the Registration Act, 1908, all Sale Deeds must be registered.

2. Can a Sale Deed be executed on plain paper?

No, it must be on stamp paper as per state laws.

3. Who bears the registration and stamp duty charges?

Generally, the buyer bears these charges unless agreed otherwise.

4. Can a Sale Deed be challenged in court?

Yes, if fraud, coercion, or misrepresentation is proven.

5. What happens if a Sale Deed is not registered?

The transfer is legally invalid, and the buyer has no ownership rights.

Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. Procedures, benefits, and outcomes may vary depending on the applicable laws of each state, and responses to frequently asked questions may differ based on individual circumstances.

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