Sale deed agreement registration is an important legal process that every property buyer and seller should know about. It is a legally binding document that proves the transfer of ownership of a property from the seller to the buyer. In India, the registration of sale deed is mandatory under the Registration Act, 1908, and failure to do so can be a costly mistake.
What is a Sale Deed Agreement?
A Sale Deed Agreement is a legal document that is signed by the seller and buyer of a property outlining the terms and conditions for the sale of the property. It includes details such as the sale price, property details, mode of payment, and any other relevant terms that both parties agree upon.
Why is Sale Deed Agreement Registration Important?
Sale deed agreement registration is important for several reasons. Firstly, it proves the transfer of ownership of the property from the seller to the buyer. Without registration, the sale deed agreement is not legally valid, and the transfer of ownership is not recognized by law.
Secondly, registered sale deed agreement serves as evidence of ownership of the property and can be used to settle legal disputes. For example, if a dispute arises regarding ownership of the property, the registered sale deed agreement can be presented in court as evidence.
Thirdly, registered sale deed agreement is important for tax purposes. When the sale deed agreement is registered, the buyer is liable to pay stamp duty and registration charges based on the value of the property. These charges are typically a percentage of the sale price and vary from state to state.
How to Register a Sale Deed Agreement?
The process of registering a sale deed agreement involves the following steps:
1. Prepare the Sale Deed Agreement: The first step is to prepare the sale deed agreement. This can be done by a lawyer or a legal expert.
2. Pay Stamp Duty: The buyer is required to pay stamp duty before registering the sale deed agreement. The amount of stamp duty varies from state to state and is usually a percentage of the sale price.
3. Get Agreement Notarized: After preparing the sale deed agreement, both the buyer and seller must sign it in the presence of two witnesses. The agreement must then be notarized by a notary public.
4. Registration at the Sub-Registrar`s Office: The final step is to register the agreement at the Sub-Registrar`s office. The buyer, seller, and two witnesses must be present at the time of registration. The registration fee is typically a percentage of the sale price and varies from state to state.
Sale deed agreement registration is an important process that every property buyer and seller should be aware of. It is a legally binding document that proves the transfer of ownership of a property from the seller to the buyer. Failure to register the sale deed agreement can result in legal disputes and financial loss. Therefore, it is essential to follow the proper procedures and get the sale deed agreement registered at the Sub-Registrar`s office.