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A Sale Deed is a crucial documentation created between seller and purchaser on transaction of property. It creates a link between seller (grantor) and purchaser (grantee) by dealing with the property so that the buyer may control the whole property. Sale deeds as the final stage in a sale transaction between the seller and buyer are significant not only as proof of ownership transfer but also for the record.
Whether it's for sale, acquisition, or any other process, it will consist of the sale deed because it is compulsory for any property transaction with the terms and conditions to be agreed upon by both parties. Generally, a sale deed needs identity proof of both parties, proof of ownership, and some other relevant documentation. Buying rights are defined by a Sale Deed, offering legal protection. It is a necessity for property claims and also generally contains current obligations like taxes and utility dues.
A Sale Deed Can Be Executed To Cover:
Points of Difference | Agreement of Sale | Sale Deed |
---|---|---|
Nature of Transfer | Implies the future transfer of the property | Signifies an immediate transfer of the property titles |
Risk Involved | Risk/liabilities remain with the seller until the property is transferred in the future | Risk is immediately transferred to the new buyer |
Contract Type | An executory contract, which is not yet fully implemented | An executed contract, which is fully implemented |
Violation Consequences | Breach may result in a suit for damages | Breach results in a legal complaint and monetary compensation for damages |
Registration | Registration is not mandatory, though norms may differ across states | Registration of a sale deed is mandatory |
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According to the law, the buyer is charged with the payment of stamp duty accompanied by registration fees. Any alternative settlement between the buyer and seller about this stamp duty and registration fees may be included in the Deed.
A sale deed is the instrument to transfer the ownership of property from the vendor to a purchaser. This deed completes the sale. In other words, the seller transfers ownership rights to the buyer through this sale deed. After the drafting of documents, they are then signed and registered, and full ownership is transferred to the buyer as per the deal.
Once it's registered, it can never be revoked, unless done through a court order.