All You Need to Know About Sale Deed

One of the primary documents, the sale deed, serves as proof of transfer of ownership during a real estate transaction from the seller to the buyer. The paperwork requires the signature of both parties, with the presence of at least two witnesses. The next step involves registering the property at the sub registrar’s office under the 1906 Registration Act. Post the completion of the discussed formalities is only when the buyer is the rightful owner of the property in the eyes of the law, earning them the following rights.

• Right to sell
• Right to Use
• Right to lease or mortgage

In Mumbai, sale deeds are governed by the Maharashtra Ownership of Flats Act (MOFA), which regulates the sale of apartments and other flats. The Act ensures that the sale deed includes all the necessary details and protects the interests of both the buyer and the seller.

Buying or selling a property in Mumbai involves several legal and financial procedures, and the sale deed is one of the most important documents in the process. It is essential to ensure that the sale deed is accurate and legally binding to avoid future legal disputes or issues. Therefore, it is advisable to seek the help of a legal expert or a professional real estate agent to guide you through the sale deed process.

Elements of a Sale Deed

• A detailed description of both parties: These include the name, complete address, age and occupation of both buyer and seller. 
• Particulars of the property: Details such as the address, area, dimensions, and nature of construction of the property.
• Indemnity clause: The clause is added to the deed to ensure the seller does not leave behind any pending expenses such as taxes, loans, and encumbrances. In such a situation, compensation to the buyer is a must.
• Transparency in payments: The property price specification that both parties agreed upon is necessary in the deed. The inclusion of any information relating to advance expenses or instalments. 
• Mode of payment: A vital step in the buying process to avoid delays, the way of payment needs to be stated vividly in the contract. The traditional methods of payment are bank transfer, cheque, and cash. 
• Right to examine: A right of the buyer, who is allowed to check the seller's documents before carrying out registration.  
• Property’s possession: A contract component mentioning the buyer's possession date.
• Requirement of witnesses at the time of the transaction: At the time of signing the deed, there is a requirement of at least two witnesses, with one from each of the parties, who need to share their complete name, address, and age. 

Explaining the process of procuring a sale deed

The sale deed requires the following steps and a mandatory registration under The Registration Act 1906.

• Step 1: The presence of a lawyer to carry out the process in detail.
• Step 2: Complete and adequate information to be present whenever necessary.
• Step 3: The lawyer begins working on all the related documents.
• Step 4: Receive a draft from your lawyer.
• Step 5: Conduct a concise examination of all the details and contact the lawyer for errors.

Defining Sale Deed Number

After completing the documentation process and payment of stamp and registration fees, a sale deed number is generated, which is present on the payment slip and the top right corner of every page of the sale deed document, having the following format in serial order.

• Document number
• Year
• Sub Registrar office signature

List of sale deed documents at the time of property registration

• Sale agreement
• Title deed draft
• Signed agreement between the builder and property owner
• The allotment letter provided by the housing board
• Power of attorney, if needed
• NOC (No Objection Certificate) for resale flat
• Blueprint of necessary authorities 
• CC (completion certificate)
• Tax receipts of property 
• Encumbrance certificate 
• Receipt of stamp duty 
• Identity verification of all parties involved
• Possession letter
• Bank papers for loan against the property
• Occupancy certificate (OC)
• Passport size photographs 

Therefore, the buyer must ensure all the documents related to the sale deed are in order. Any discrepancy could cause a waste of time and resources, given the ownership status being considered null and void by the government without the paperwork mentioned above. 

Conclusion

A sale deed is a crucial legal document in buying and selling real estate, including Mumbai. It serves as proof of ownership transfer from the seller to the buyer, and it has all the essential details related to the property's sale, such as the sale price, terms, and conditions. The sale deed is registered with the government to ensure its legal validity and protect the buyer and seller's interests. Therefore, ensuring that the sale deed is accurate and legally binding is essential to avoid future legal disputes or issues. Seeking professional guidance from a legal expert or a real estate agent can help ensure a smooth and hassle-free sale deed process.