What is a sale deed in Real Estate ?
A vital document that helps to register a home successfully is the sale deed. Also known as a conveyance deed, it is a legal document used in property transactions as evidence for the sale and transfer of property ownership in favour of the buyer from the seller. The sale deed is signed after the buyer and seller have agreed to the terms and conditions. To know more about this document, read on.
A sale deed, also known as the final deed or conveyance deed, is an instrument in writing which legally transfers the ownership rights of an immovable property from one person to another in exchange of a price paid/consideration. It is made for the sale or purchase of land or any construction made on it. The person who transfers the property is known as the transferor or the seller while the person in whose name the property is transferred is called the transferee or the buyer.
The document lays down the details of the parties, the final deal price of the property, the accepted mode of payment and the time for handing over the possession of the property along with the original documents. It also acts as proof that the buyer is the outright owner of the said property.
How is a sale deed different from a sale agreement?
A sale agreement of immovable property is different from the sale deed for the same property. In simple words, the sale agreement of a property is a contract stating that a sale of such property shall happen on the terms as agreed upon by the parties. It specifies the terms and conditions, under which the property (to be sold) will be transferred.
So, a sale agreement basically, contains a promise to transfer a property in future, after compliance with specific terms and conditions. It does not develop or establish any rights or interest in the property for the prospective buyer.
Things to keep in mind before executing a sale deed
Before the execution of the sale deed, the buyer should ascertain that the title of the property is free of all encumbrances. Verification of the encumbrance status from the registrar’s office is a must for the buyer purchasing the property. After ensuring that the property is free from encumbrances, the purchaser should also corroborate that all the statutory payments such as water/electricity bill, cess, property tax and maintenance charges have been cleared and no further dues or permission is pending for the transfer of property through a sale deed.
Buyers of a property must take note that the sale deed is one of the most important documents which establishes the proof of ownership post the purchase is made. Hence, one must make it a point to acquire this document.