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Sale Agreement and Sale Deed difference

What is difference between a Sale Agreement for property and Sale Deed?

Sale Agreement of land or building is an ordinary agreement in which one party promises to sell the landed property or building to another and the other person agrees to buy it. It contains a promise to sell and acceptance to buy. It is a future event.

In Kerala, the Sale Agreement can be entered even orally and if in writing that should be in 100 Rupees stamp paper. It need not be registered in a register office.

Even then if the parties wish they can register it in the Sub-Registrar office by paying sufficient amount of stamp duty.

Normally a Sale Agreement is valid for 3 years from the date of its signing.

Only a major can sign into a Sale Agreement.

Basically A sale Agreement shall be an undertaking from either side to execute a Sale Deed.

A sale Deed is much different from Sale Agreement.

In a Sale Deed, the title of the property shall be transferred and generally along with the possession. A Sale Deed is to be registered with the Sub-Registrar at his office, within the jurisdiction where the property actually situates.

Sufficient stamp duty according to the value of the property is to be paid for the registration. In addition to the Stamp duty 2% of registration fees also to be remitted at the time of registration.

It is very difficult to cancel registered Sale Deed whereas a Sale Agreement can be terminated for the reasons set forth in the Sale Agreement.

Property sale agreement registration

Should a Sale Agreement be registered in Kerala?

Sale_agreement_registration In Kerala, the Sale Agreement can be entered even orally and if in writing that should be in 100 Rupees stamp paper. It need not be registered only in a register office.
Even then if the parties wish they can also register it in the Sub-Registrar office by doing or paying sufficient amount of stamp duty.

It would be advisable to have the Sale Agreement registered. Then it would reflect in the sub-Registrar’s records and any subsequent buyer on verification would identify the existence of a valid agreement on the property.

However, Property sale agreement registration is a costly event as you  have to pay huge sums as the stamp duty and registration Fees.

Example-Suppose if you want to make an agreement of purchase of the flat with the seller then there must be written on the stamp paper of proper value and must be sign by both the parties along with witness. How ever it must be noted that it should be registered within 4 months before the date of sign in of this agreement so that it become good piece of evidence.

Later on you and seller both have to sign a sale deed of this flat this will be a proof of your ownership of flat has been completly transfered to you.
Just call us for a legal consultation on Property sale agreement registration.

Land or Property Registration Procedure in Kerala

What is the procedure for registration of a landed property in Kerala ?

Registration of a Property can be done through different types of documents based on the nature of transaction. It can be Sale Deed, Partition Deed, Gift Deed, Exchange Deed, Settlement Deed, Assignment Deed, Release Deed, Mortgage Deed, Lease Deed, License Deed etc. The legal and cost implications in each type of deed are different.

Once the legal verification is completed and all the required documents are procured, the Deed may be drafted with the help of a competent attorney. Thereafter stamp paper for sufficient value with respect to the value of the property to be purchased from the government stamp depot or official stamp vendor. Remember to purchase the stamp paper in the name of the purchaser.

Land registration in Kerala procedure

There is a prescribed and required format for drafting each kind of Deed. The Deed in original along with all the required documents and forms to be presented before the Sub-Registrar. This will be done by your attorney’s office.

The sub-Registrar after verification and comparison shall check if you have paid sufficient stamp duty. On being satisfied with the formalities and the stamp duty, the Registrar shall verify the identity of the Seller and the witnesses. If the buyer is present, his identity also would be checked.

Thereafter you will be asked to pay the Registration Fees.

In fact there is no need to pay any amount than the statutorily fixed amount for registration. Any unwanted practices of gifts and bribes in the Sub-Registrar’s office is to be strictly discouraged. Just call us for knowing and getting Land registration in Kerala procedure.

Commercial land

A land which is used for the purposes of carrying out commercial (profit making) activity or business.

Commercial Land

Consideration In the context of sale of property, consideration means the amount of money paid by the buyer to the owner of the land (seller) to satisfy the sale. In legal terms, it is anything of value promised to another when making a contract.

Deed in Kerala Real Estate, Property, Flat, Building Transactions

What is a Deed in Kerala real estate/property/flat/building transactions?

Deed in Kerala Real EstateDeeds are legal documents that transfer ownership of a property. A person who executes a deed transfers right of property to another. It is the most common way of transferring ownership of a property. There are different types of deed by which a property can be transferred. For more details on Deed in Kerala real estate, just contact our real estate lawyers.

Sale Deed in Kerala Real Estate Property, Flat and Building Transactions

What is Sale Deed in Kerala real estate property/flat/building transactions?

A Sale Deed is a document that transfers ownership of the property by way of sale. Typically, a Sale Deed is executed after the compliance of the various terms and conditions detailed in the Sale Agreement or Agreement for Sale.

The word “SALE DEED” otherwise called as “Conveyance Deed” is a legal written document executed by the vendor and the purchaser which evidences the sale and transfer of ownership of the tangible immovable property.Sale-Deed-in-kerala

A sale deed in Kerala is governed by the Transfer of Property Act and the Registration Act, 1908 and is an important document for both the buyer  and the seller. A sale deed is executed, usually, after the execution of the agreement to sell, and after compliance of various terms and conditions between the seller and the purchaser mutually.A sale deed is the main document which gives details of how the seller got the property, at what consideration the seller is selling the property and assurance to the purchaser that the property is free from any encumbrances, liabilities or indemnity clauses. A sale deed acts as an essential document for the further sale of the property by the purchaser as it establishes the proof of ownership of property.

An absolute sale deed must contain the names, age and respective addresses of parties to the transaction and both the parties i.e. seller and buyer must be competent to enter into a contract so that it will not affect the validity of the valid sale. It is very much important that the sale deed is duly signed and executed by both the parties with their bonafide intention. A valid sale deed must start with clear description of the parties.

 

 

Encumbrance Certificate by Revenue Department

What is the Encumbrance Certificate that will be issued by Revenue Department?

This is an important document that helps to ascertain whether the property is free from all claims such as mortgages, leases, unpaid debts etc. An encumbrance certificate is a report issued by the Sub-Registrar’s office after due verification of the relevant documents related to the property certifying the entire transactions on the property for a specified search period requested by the applicant. Therefore, it is important to get encumbrance certificate for a period not less than 30 years before entering into an agreement for sale. Feel free to contact our real estate legal associate for clearing your doubts on Encumbrance Certificate.

Kudikkada certificate by Revenue Department

What is the Kudikkada certificate that will be issued by Revenue Department?

This is an important document that helps to ascertain whether the property is free from all claims such as mortgages, leases, unpaid debts etc. An encumbrance certificate is a report issued by the Sub-Registrar’s office after due verification of the relevant documents related to the property certifying the entire transactions on the property for a specified search period requested by the applicant. Therefore, it is important to get encumbrance certificate for a period not less than 30 years before entering into an agreement for sale. Just contact our lawyers for knowing more details about Kudikkada certificate by Revenue Department.

Feel free to contact Biz and Legis law firm for clearing any doubts on Kudikkada certificate. Our online legal consultants can help you. Call us on 0091 – 9847182002

What is a Danapatrom or Danapatram

What is a Danapatrom or Danapatram ?

A method of transfer of property that existed decades back in the state. It is a written document on unstamped paper that evidence voluntary gift of land to Bhoodan Movement. (A movement that encourages voluntary gifts of land to distribute to deserving persons.)

 Contact our real estate consultants to knowing about Danapatram. Call us on 0091 – 9847182002 for any legal services connected with real estate law.