While purchasing an immovable property, you have to be sure of relevant details like decided price, the total area of the property, any dues associated with it, the date of transfer of property and so on. For this, the sale deed is the right document. The sale deed is governed under the Registration act and is very crucial for both the buyer and the seller. For proper execution of this process, you need to know the process of sale deed, the necessary elements, and even the sale deed format to know how to execute it. So, let’s discuss this one by one.
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Necessary elements of sale deed
- The sale deed format should contain the name and address of executing parties i.e. the buyer the and the seller
- The complete description of the sale deed. It includes the complete address, the area covered, the type of property like a bungalow, Kothi, shop, office, residential flat, etc.
- Sale price agreed between the buyer and the seller. Also, if there is any advance paid should be mentioned in the sale deed format. The mode of payment such as through cheque, Demand draft, an online transfer is also important and should be mentioned in the sale deed. Learn more about the payment gateways in India.
- The sale deed format should mention the time when the title would be passed on to the buyer. All the documents must be handed over to the buyer.
- Before handing over the property, the seller should make sure there aren’t charge, any dues or encumbrances. If there are then the buyer shall make the seller cover the expenses incurred.
All these details must be typed on non-judicial stamp papers. The value of these papers is the money you are needed to pay as the stamp duty. For example, in Delhi, stamp duty is 6% for a man and 4% for a woman. So, if you’re a woman and buying a property worth Rs.10 lakh, then stamp duty is Rs.40,000.
The buyer, after creating an ID on Stock Holding Corporation of India Limited (SHCIL), can buy e-stamp online. You can get it delivered by paying an additional fee or collect it yourself by visiting SHCIL Authorised Collection Centers near you. visit e-shcilestamp.com
This option of e-stamp is available in the states- Gujarat, Karnataka, Delhi, Assam, Tamil Nadu, Rajasthan, Himachal Pradesh, Uttarakhand, Dadra & Nagar Haveli, Daman & Diu, Puducherry, Uttar Pradesh, Chhattisgarh, Jharkhand, Jammu & Kashmir, Punjab, Chandigarh, Odisha, and Andhra Pradesh. In other states, one has to fill the form physically.
After the papers are purchased, you are supposed to mention the following in the papers
- Name of the parties involved (buyer and seller)
- PAN card and photographs of buyer and seller.
- Complete details of the property
- Total stamp duty fee
- The name of the person buying the stamp
- Name and addresses of 2 witnesses
- The deal value and all the financial details (including TDS payment) plus receipt of registration charge payment.
Sale deed registration process
Now, you should book an online appointment with the sub-registrar. You could also go to the reception of the sub-registrar office for the same.
In Delhi, check http://revenue.delhi.gov.in to book the same.
Both the parties are supposed to reach the sub-registrar office with 2 witnesses. After online confirmation, an appointment ID is generated which you must carry with you as proof. Also, don’t forget to keep your original ID proofs with you along with TDS and property registration payment receipt. And learn more on How to file TDS on sale of property
- Go to the office, showing this appointment ID you would get a swipe card and a token.
- Now, go to the facilitation center, where only the parties involved are allowed to enter. Here, all of your documents are checked before being sent to the sub-registrar.
- Then, the officials would help the buyer and the seller mark their fingerprints and sign. This should be done on all the pages of the documents.
- After close inspection, the sub-registrar would again check the documents and in case of any discrepancy, he could reject them.
- If accepted, both the parties move forward to the biometric division for fingerprints and photographs.
- After all of this process is completed, you would be issued a receipt.
- The buyer can collect the sale deed within 15 days of the registration process.
Advantages of sale deed format
- It protects the parties. A well-drafted sale deed would minimize legal risk and avoid ambiguity.
- It defines the area. As a buyer, you should very well know the complete details of the property including the square foot area and the location.
Disadvantages of sale deed format
- It would be a loss of time and money if there is any default or mistake made by the buyer
- Moreover, the seller can immediately foreclose the property if the buyer doesn’t make timely payments and the buyer has no say in it.