Agreement to sell and Registered Sale Deed
Agreement to Sell
An agreement to sell is a crucial document in property transactions. This is why all the terms and conditions included within the agreement of sale must be understood thoroughly by both parties and obeyed throughout the sale process.
It is a contractual property agreement between the customer and therefore the seller to sell a specific property on particular terms and an agreed-upon price.
It is not an actual sale but a written promise to hold out the contract at a future date.
Registered under the Contract Act, 1872, the contract is legally binding on both the parties.
A roadmap on how property transaction are going to be completed, the sale agreement or agreement to sell may be a precursor to the Sale Deed where actual transfer of property takes place.
In the contract, usually two to 3 months' time is given to the customer to rearrange funds and perform the other formalities before the particular transaction takes place.
As the document has legal sanctity, both parties mutually comply with include certain clauses within the contract.
These clauses are often associated with penalty for not honouring the contract, right to call off the deal, terms and conditions concerning who can pay the outstanding dues, etc.
The agreement clearly states the names of the customer and therefore the seller, the dimensions of the property, its direction, carpet area, etc.
The type of property is additionally listed within the contract, i.e. if it's a freehold, leasehold or mortgaged property. The terms and conditions within the case of the leasehold or mortgaged property also are spelled out.
In the contract, the vendor pledges to offer the property free from all encumbrances, and therefore the buyer promises in touch the value of transfer of the property.
The money that's paid is additionally listed along side the way during which the remaining payment is to be made.
A dated document, the contract is signed by the parties within the presence of two witnesses.
It is advisable to urge the document made up of a lawyer, who will understand your needs and concerns and draft the agreement accordingly.
What is Sale Deed?
A sale deed may be a legal instrument that permits a celebration to transfer property from one person to a different . It is defined under Section 54 of the Transfer of Property Act, 1882 as; “Sale” may be a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. Thus without a purchase deed, there would be no evidence to attest the transfer of a property, further there would be no evidence to facilitate subsequent transfer of the property.
Registering a Sale Deed
In order to register a purchase deed the subsequent steps need to be undertaken:
The value of the property has to be estimated based on the circle rate (minimum value set by the state government's revenue department or the local development authorities at which the sale can occur) in that area.
The circle rates of the area and the actual price paid for the property are compared. While calculating the stamp duty the higher of the two values, i.e., the circle rate and the actual price paid, has to be taken into consideration. Non judicial stamp paper of the worth so calculated has got to be purchased thereafter.
Subsequently, the deed has to be prepared and typed in stamp papers.
The final step involved for getting the sale deed registered is to approach the Sub-Registrar’s office so as to urge the sale deed registered. The parties must be accompanied by two witnesses.
Key Components of a Sale Deed
The essentials that one must confine mind while preparing a purchase Deed are the following:
The Sale Deed must be classified as either a ‘Deed of Sale’ if the property is being sold, or as ‘Deed of Mortgage’, if the property is being leased or mortgaged.
The Sale Deed must contain accurate information concerning the sale. A Sale Deed is claimed to be void if it doesn't contain the right information of the customer and therefore the seller.
The Sale Deed should have relevant information so on enable an individual , identify the immovable property which is that the material of the deed.
A Sale Deed is incomplete if it's not amid a purchase Agreement. The Sale Agreement contains all the terms and conditions that are agreed to by the customer and therefore the seller.
Finally, the Sale Deed must also contain the Proof of Registration of the property.
Also read about the legal notice; https://legalopinion.pk/service/legal-notice
Also read about property/Rent laws;https://legalopinion.pk/service/property-rent-cases