When selling your home, you are required to sign any documents in order to complete the transaction. A single document known as a property sale deed contains all essential information about who owns what and who is involved in the sale and purchase of the property. It grants you all of the rights to ownership that the previous seller enjoyed over the property. We will go over what a property sale deed is and some of the aspects that make it important in any property transaction in the following paragraphs.
What is a Sale Deed for a Property?
A legal document known as a property sale deed is used to transfer ownership of a property from the seller (also known as the transferor) to the buyer (also known as the transferee). Unless both parties sign a Sale Deed, the purchase and sale of the property are not legally complete. A property sale deed, for example, is typically signed only after both parties are satisfied with and in agreement with the contract of sale’s terms.
Section 54 of the Transfer of Property Act of 1882 specifies all information about the components of a sale deed, the property transaction process, and the elements that would make the contract for sale valid. According to the Act’s provisions, a “transfer of ownership” in exchange for a price or fee is a “sale.” A fee of this kind can be paid right away or promised to be paid in part or in whole in the future.
The three fundamental rights are contained in a property sale deed document. These are:
Right to Have and Partake in the Property
Right of Title
Right of Estrangement.
After the complete transfer of ownership rights to the buyer, the seller has no more rights in a property sale contract. To put it another way, the seller must transfer all rights for a sale to be valid for the buyer. The motives and purposes of a transaction are equally important considerations.
When an immovable property is transferred, the rights, responsibilities, and obligations of both parties are outlined in Section 55 of the Act. Fair deals, preventing fraud, and maintaining constant use of the property are its primary objectives.
It is essential to keep in mind that the Act’s Section 55’s applicability is only crucial when there is no contrary contract. This means that Section 55 does not apply as long as the contract of sale specifies all of the buyer and seller’s rights, responsibilities, and obligations.
However, merely reading Section 54 is insufficient to comprehend the Transfer of Property Act of 1882-specific selling procedure of immovable property. That is, you must read these provisions in conjunction with Section 54 of the Act in order to comprehend and investigate the implications of Section 55 of the Transfer of Property Act of 1882.
Characteristics of a Property Sale Deed A property sale deed has the following characteristics:
1) A property sale is subject to the same provisions of section 10 of the Indian Contract Act of 1872 as any other general contract. For instance, the buyer’s free consent is required before the property can be sold.
2) Two witnesses from both parties must be present to support a valid sale deed. In the event of future disagreements, this ensures that the interests of both parties are safeguarded.
3) A property sale deed is a legal document that binds both the seller and the buyer.
4) It is a unique kind of document, making it a legitimate way for the buyer to see who owns an immovable property.
5) In order to guarantee that the title is cleared through the deed, legal professionals typically prepare the sales deed document by conducting a search and providing the necessary title report.
6) The property description, names of the parties involved in the transaction, and purchase price are all essential components of the deed.
7) In addition to stating the seller’s rights to sell the property, a sale deed should also state that there are no outstanding liens or encumbrances on the property.
8) It also has a clause that says that the party who breaks the contract has to pay the penalty to the other party who didn’t do anything wrong.
9) In the event that the property is subject to any covenants or restrictions, these must be noted in the deed.
10) Prior to the actual occurrence of the document of a sale deed, there is a precondition as an agreement to ensure the protection of both parties’ rights.
Rights the Buyer Has Under the Property Sale Deed
A buyer has the following rights under the property sale deed:
1) The buyer has the right to have all liens and encumbrances transferred for free; 2) The buyer has the right to have all inspections done before the transfer closes; 3) The buyer has the right to be informed of any significant flaws with the property and to withdraw from the transaction if these flaws are not addressed; and 4) The buyer has the right to get the keys and take possession of the property.
2) Rights Granted to the Buyer by the Property Sale Deed The following rights have been granted to the buyer by the property sale deed:
3) The Right to Consideration A seller has the right to all of the compensation outlined in the Sale Contract. The buyer is obligated to adhere to the deadline outlined in the contract if payment is required within a certain amount of time. The buyer would be in violation of the sale contract if this were not done.
4) Right to Rents and Profits The seller is entitled to all rent and profit benefits associated with property ownership. That is, until the property’s ownership rights are transferred, the latter has the right to all property income.
In conclusion, a property sale deed is one of the most important and valuable legal documents that must be signed by all parties to conclude the sale. It is a document that not only serves as the official record of the current transaction but also conveys ownership rights from the seller to the buyer. However, the purpose of the sale deed is to transfer ownership of the property from one person to another, thereby altering its legal status.