What is Sale Deed
Sale deed is one of the most valuable legal documents in a purchase or sale of a property. A sale deed is drafted by legal draftsman on a non-judicial stamp paper of the requisite value as prescribed by stamp act of the particular state concerned. Today, in many States including Andhra Pradesh and Telangana, the stamp papers are available up to the value of Rs.100/- only. The parties shall use 5-6 Non-Judicial stamp papers and remaining amount shall be paid through challan system (AP) and through stamping and other mechanism provided by the State Government (in others States).
In order to register a sale deed the following steps have 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 value so calculated has 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 in order to get the sale deed registered. The parties must be accompanied by two witnesses.
Notes To Follow
The original documents have to be produced within four months from the date of registration of the deed.
It is the buyer who pays the stamp duty and the registration charges.
The seller needs to clear all payments related to the property such as property tax, cess, water and electricity charges before the sale deed is signed.