Are you a first-time investor? Here is what you need to know about sale deeds

Property investments, unlike other forms of investments is long-term in nature. Owning a home is by far the most crucial decision you would ever make. There are many aspects that have to be considered in order to arrive at constructive investment decisions. Local residents around emerging metropolitan cities are transitioning from living as mere tenants to first-time property aspirants. Realty purchase decisions require sufficient time and allocation of surplus funds. The selection of the location of your choice is as crucial as important as devising a budget as it demands a collective approach. To combat such challenges, potential investors should consider consulting with professional advisers who provide a clear understanding of the property market. Be it the amenities that are favorable, floor plans for space utilization of an in-depth knowledge of the sale deed, every external assistance does count. A sale deed is a document that entails the process of purchasing, selling and transfer of ownership of the property between two parties. These would include the details regarding the property development and realtor details in regards to their past records. Therefore, if you are someone who is investing in a new home for the very first time, its crucial that you realize the importance and meaning of terms enclosed in the sale deed. Let’s take a look at some aspects that would help you better understand the sale deed and its significance.

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How do we define a sale deed?

A sale deed is an enclosed document that consists of all the details pertaining to the type of sale between the buyer and the seller. This specific document or the deed is regulated by the Registration Act of India and is considered to be important to both, the realtor and the investor. There are a number of terms and conditions stated in the sale deed. This agreement is considered valid and legal only if both the parties sign the document and comply with the norms in the deed. The ultimate purpose of the sale deed is a proof of legal compliance and protection if the seller is inclined towards illegally altering the conditions of the sale.

Essential pre-requisites of a sale deed

Though there are two parties involved in a sale deed, there are many conditions that customers should keep in mind before they finally agree to make the end purchase. For instance, details of the parties involved are a must and should be included in the specified document. This would comprise of the buyer’s and seller’s full name, permanent address, age and employment details. Also, the sale deed should represent the parties involved as buyer and the corresponding seller. Another important aspect of the sale deed includes the details of the property which is for sale. For example, the document should have the details of the floor plans, construction details and total plot area if the investor is purchasing an independent plot.

Agreement of sale

The sale agreement should consist of the amount that is paid by the buyer to the seller pertaining to the property of interest. This would also include any receipts in regards to advance paid in the initial stages. In case of online transactions details, bank-related information should be clearly mentioned in order to avoid hassle in the future. Going upon such checks, both the parties should adhere to rules mentioned in the document before signing the document, which is the closure of the agreement between both the parties.

The indemnity agreement

There should be a section of factors involved in the sale deed which states that the seller has cleared all his dues in terms of water bills, tax pertaining to the property, electricity bills and so forth. In case the property is purchased using a home loan by the buyer, the seller should repay the amount invested and get the receipt attested that clear any dues that need to be settled. It’s the sole responsibility of the buyer to check all these details before making the final purchase.

Delivery clause to be clearly stated in the sale deed

This clause in the sale deed includes the time and the date of possession of the property. This is in favor of the buyer as they can now expect timely delivery of the property, they have invested their hard-earned money in. According to RERA, realtors are requited to provided timely delivery of residential spaces in order to avoid hefty penalties.

In conclusion, considering the terms and conditions present in the sale deed, it becomes a hassle-free investment experience for first-time homeowners.