In strict legal terms the sale of a property is a transfer of the ownership in consideration of the price paid for the value of the immovable assets. In case of sale there is an absolute transfer of the property from the seller to the buyer. For that there is a contract of sale which is called the sale deed.

This kind of transfer is usually done through a sale deed which has to be registered. The delivery or the possession of the said property can be done when the handing over is complete from the seller’s end to the buyer. This can also be done by a person who is authorized by the owner or an attorney.

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Before the sale deed is entered into there is an agreement to sell where the seller shows the intent to sell and the buyer accepts it. This is an evidence of the intention to sell for the transfer of property. This tends to establish the ownership of the property by the buyer. Following this is the agreement to sell which is being entered into. The sale deed is the main document that entails the details of the property, details of the mechanisms of acquiring the property, the consideration amount, encumbrance clauses, liability and indemnity and few other factors.

An agreement to sell has to be executed by both the parties that are the seller and the buyer on a non-judicial stamp paper duly signed by the seller and the buyer. This has a legal value and if necessary can be produced to the court of law as a documentary evidence of sale.

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The sale deed of any property should clearly mention that it is a sale deed which is being executed between the buyer and the seller. It should mention the names with the addresses, the details of the properties, the amount for consideration and other details. The people entering into the contract shall also be competent to enter the contract according to the specified law.

Few of the contents of the sale deed

  • The location of the property, address, area, number of plots and construction details.
  • The exact location of the property with the schedule.
  • The transfer clause of the title of the property from the seller to the buyer.
  • The indemnity clause in the title of the property in case a defect in the title comes to light at a later stage.

On registration of the property the buyer is liable to take possession of the property. A sale deed should be duly signed and should also be executed by both the seller and the buyer. Any kind of alteration, amendment, deletion or addition should be authenticated only when it is signed by both the parties. The buyer has also to pay the stamp duty to register the deed. This is the whole sale process of a property.

8 Responses

  1. Godwin

    Due to the effect of very high demand for residential homes in Bengaluru, there are many builders and agents are selling litigation properties & they may attract you by offering the very lowest price so be aware about such things & in such situation don’t proceed without a legal adviser’s suggestion.

    Reply
  2. Abhi

    As we know in the realty market, there are many litigation happening. So as a buyer while buying a property, we should follow the tips which are mentioned in the article and should have proper ownership documents from the seller.

    Reply
    • Anoop

      The effect of huge demand in real estate i.e. especially in Bengaluru there is many illegal properties are selling. So be aware of such properties. And verify the documents thoroughly with legal advisers.

      Reply
  3. Santhosh

    While selling a property, some key issues plays major role on the buyer. Buyer concentrate on some issues while purchase. The issues like the credibility of the seller and the product in the market and previous history of that builder. These points are crucial in the understanding of legalities of a seller in the point of a buyer.

    Reply
  4. Narendra

    The selling of a property means there is a money exchange between the buyer and owner. If we are going to sell to anybody, we have to take care of money by taking Legally like cheque or bank related transfers not encourage by cash it may be block money. So be careful while selling a property.

    Reply
    • Mahi

      Selling of a property is not only a transfer of money and also a transfer of ownership of a property. Whenever buying a property, we should know the hierarchy of the ownership of the property, otherwise in the future there will be a problem.

      Reply
  5. Rakesh

    You are given good points on legalities of a sale deed. I think if you add one more point to these 4 will be good. That is “The information about the previous ownership and the latest registration details”. Anyway this is a nice article.

    Reply
    • Johnson

      Hi Rakesh, the suggestion given by you is very nice. This is useful for both home buyers and sellers. Please add this in article.

      Reply

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