1) Parties involved in the sale deed It mentions the details of the seller and buyer like their names, addresses, ages, contact details, occupations, and the date of execution of the deed
2) Description of the property Property dimensions, construction details, exact location, surroundings, precise details
3) The Sale Consideration The price consideration at which the property is bought or sold and it is agreed by the parties indeed, the price is mentioned in both numbers and figures to avoid any sort of confusion
4) The clause regarding payment method Price agreed between two parties can be made in cash, cheque, DD, transfer through internet banking
5) Advance payment and installments The sale deed would mention the amount received previously as an advance or a part payment
6) Transfer of Title clause It expresses the intention of the seller to transfer the ownership in favor of the buyer
7) Delivery of the deed and possession of the property The deed also specifically mentions on what date the property will come into the possession of the buyer
8) Indemnity clause and the encumbrance clause To make sure that when the property is sold to the buyer, it is free from any incumbrances ie that includes taxes, charges, dues, demands, arrears, electricity charges, water charges, outstanding bills, house tax, mortgage, development charge, and prior assignments of sale or leasehold
9) Liability in case of default If either of the parties of the sale deed is at fault, then that party is responsible to make good for the loss caused, this could be in the form of a penalty fee
10) Witness and registration At least two witnesses must attest the documents along with details such as name, age, address – this is known as testimonium clause
11) Right to quiet enjoyment of property Vendee (buyer) shall hold and enjoy the same as absolute owner without any interruption from the vendor(seller)
12) Reddendum clause The function of this clause is to reserve some rights of the seller in the property even though the title is transferred to the buyer
13) Tenedum clause This clause is included in the sale deed to indicate that the improvements are being sold together with the land
14) Warranty clause (ownership) By this clause, the vendor warrants or assures the buyer that he is the right full owner of the property and has the legal right to convey the property to the vendee
15) Time is of the essence clause It is to ensure that all aspects of the property transfer deal happen on time and delay is avoided
16) Rights to call off the deal One can include a clause that will allow them to back out of the business transaction if certain situations arise, it gives the right to not continue and perform any future obligations towards completing the deal in specified circumstances
17) Dispute Resolution It lays down a procedure agreed upon by the parties of how to go about in case of a dispute arises ie arbitration, mediation, and conciliation or court
Mandatory disclosures from the seller in the sale deed
1) full disclosure to the buyer any material defect in the property or in the seller’s title, or third party claim and disputes if any
2) produce to the buyer on his request for examination all documents of title relating to the property which are in sellers possession or power
3) the answer to the best of his information all relevant questions put to him by the buyer in respect to the property or the title thereto
4) on payment or tender of the amount due in respect of the price, to execute a proper conveyance of the property when the buyer tenders it to him for execution at a property time and place
5) to take as much care of the property and all documents of title relating thereto which are in his possession between the date of the contract of the sale and the delivery of the property
6) to give, on being so required, the buyer, or such person as he directs, such possession of the property as its nature admits
7) payment and clearance of all government charges and rent accrued due in respect of the property up to the date of the sale
A lien is a legal right to claim a security interest in a property provided by the owner of the property to the creditor
It is generally used as a guarantee for some sort of legal obligation such as loan repayment
Payment of stamp duty and registration charges
As per law, the buyer has to pay the stamp duty and registration charges
Sharing charges incorporated in the sale deed is accepted
Advantages of Sale Deed
1) it provides legal recognition for your sale transaction
2) it clearly lays down the description of the property, the parties, and their rights and obligations
3) registered sale deed can be used as evidence in case of any legal dispute
4) avoidance of fraud, sale-deed allows the authorities to keep a regular check on any kind of fraudulent transactions of the properties
5) Easier taxation, the total amount of cost involved in the transfer of a property can be precisely determined which allows the process of taxation too much easier for the authorities
6) Establishment of title in the name of the owner
We take all possible care for accurate & authentic news/empanelment/tender information, however, Users are requested to refer Original source of the Notice / Tender Document published by the Issuing Agency before taking any call regarding this tender.
