Need to understand sales deed

564 votes

Thanks for your query. Apart from basic title deed diligence-typically you must carefully examine whether the seller is giving you right to inspect, ensure that it's not a mortgaged property. Separately, note that you might have to look into passage rights, obligation in relation to earnest money, delivery date etc.

LawRato LawRato

544 votes

1. A sale deed has almost all the details required to carry out the purchase or sale of a property. Beginning with the basic details like the full names of the buyer and the seller, and their addresses, the other details in the draft sale deed would include the details of the property under sale such as its identification number, its exact location, the address, total area of the property, and the detail of the construction if it is a house.
2. Most importantly the sale deed would require the seller to certify that the property under sale is free from any encumbrance and without any lien.
3. If there is an existing loan taken against the property the seller should settle the loan and then only execute the sale deed. However, it is always better for the buyer to check this with the local registrar's office.
4. Besides these the draft sale deed would also include the total amount to be paid for the purchase/sale of the property, advance amount paid if any, the dates on which the payment are made, how it is paid, the time given for the payments, the details of the bank transactions of the payments, etc.
5. The sale deed would also mention about the receipt issued by the seller to the buyer for the money received towards the sale transaction.
6. It would also clearly mention the exact date on which the seller would hand over to the buyer the original property related documents and the date of subsequent possession of the property under sale.
7. The draft sale deed would also mention the indemnity provisions for the buyer and the seller.

Advocate Pipli Datta LawRato