The signing of the selling document is theoretically the final step in the property-purchase process. When a buyer and seller reach an agreement, they first execute an agreement to sell, which is a contract that establishes the terms and circumstances under which the future transaction will take place. The drafting of an agreement to sell indicates that the transaction's terms have been agreed upon, whereas the production of a sale document indicates that the purchase has been finalized. According to the terms of the agreement to sell, the two parties must complete the deal within a certain time after signing the agreement to sell.

You may have come across something called a selling deed during your study before deciding on a home. It is the most valuable legal document you will have when buying a house. You will be permitted to proceed with the registration and mutation of the property based on the purchase document. Legal draughtsmen prepare the sale or purchase deed on non-judicial stamp paper according to the value stipulated by a state's stamp duty laws.

When you purchase or sell real estate, the transaction is not legally binding until both the buyer and seller sign the sale deed in the presence of at least two witnesses. The sale deed, which is governed by the Registration Act of 1908, is the most significant document to have when selling or acquiring property in India.

The Sale Deed's Parties

Needless to mention, the details of the parties engaged in the transaction must be included in the sales document. To be legitimate, it must include the names, ages, and addresses of the individuals (buyer and seller) engaged in the transaction. Both parties must sign and execute the deed with good faith.

The Sales Property's Description

The sales document must provide a detailed description of the property you wish to purchase. For example, if you are purchasing a 3BHK in Bandra, the sales paperwork should include the entire plot area, identification number, building specifications, exact location, and surrounds. To describe the precise location of the land, the property schedule must be included in the selling transaction.

Sales Agreement

When you pay a booking fee for your new flat in Mumbai, this paperwork is created. This agreement stipulates that both the seller and the buyer must jointly resolve the agreement's conditions and terms such that neither party's rights are affected. Typically, the sales agreement is drafted prior to the selling deed.

Consideration Clause of Sale

The agreed-upon sum between buyer and seller must be included in the selling consideration clause. This is the sum that the buyer agrees to pay to the seller at the completion of the sale deed. The agreed-upon sale price should be explicitly indicated on the deed.

Payment Methods And Advance Payment

If you paid anything in advance to the builder or seller to reserve the flat, it should be clearly stated in the sale deed. The remaining amount owed must also be specified in the document.

The method of payment—cheque, cash, or DD—must be included on the form, as must the seller's agreement to accept it.

The Title's Transfer

The selling document should state when the buyer will get the property title. The seller must be provided with a time restriction for the transfer of title. All associated rights pass to the buyer once the title is transferred.

Possession Delivery

A clause in the selling document must state that the seller will transfer possession of the property to the buyer when the registration procedure is completed. The precise date of conveyance of possession should be stated in the selling deed.

Indemnity Provision

This is mainly relevant in the event of a resale property. The provision says that the seller must pay all statutory costs, such as energy bills, property taxes, water bills, maintenance charges, and society charges, as well as any other outstanding debts, prior to the signature of the sales deed. If the original buyer had a home loan to acquire the property, the seller must repay the loan and obtain the documents from the bank. As a prudent buyer, you should investigate the status of encumbrance from the sub registrar's or registrar's office.

Calculate stamp duty and purchase non-judicial stamp paper.

All transaction data would be typed on non-judicial stamp papers — stamp papers used for deed execution are known as non-judicial stamp papers, whereas those used to pay a fee to the court are known as judicial stamp papers.

The value of these stamp papers is the amount of money you must pay the authority as stamp duty, which is the price authorities impose to register a transaction in government records. In the national capital, for example, the stamp duty rate is 6% for males and 4% for women. In Delhi, a guy acquiring a flat for Rs 10 lakh must purchase stamp papers costing Rs 60,000.

After registering an ID on the official website of Stock Holding Corporation of India Limited, the customer can purchase an e-stamp of the proper value (SHCIL). After paying an extra cost, one can have the e-stamps sent to their house via the same website. You might also go to a SHCIL Authorised Collection Center near you to pick up e-stamps ordered online.

It should be noted that e-Stamping is now available in Gujarat, Karnataka, Delhi, Assam, Tamil Nadu, Rajasthan, Himachal Pradesh, Uttarakhand, Dadra & Nagar Haveli, Daman & Diu, Puducherry, Uttar Pradesh, Chhattisgarh, Jharkhand, Jammu & Kashmir, Punjab, Chandigarh, Odisha, and Andhra Pradesh. In other states, tangible documents must be purchased from authorized outlets.

Following the acquisition of the papers, every detail regarding the transaction and how it is carried out would be written out of the paper. These particulars would include:

• Names of the buyer and seller PAN numbers of the buyer and seller
• Photographs of the buyer and seller
• The property's complete description
• The value of the transaction and all other financial data, including TDS payment (if applicable)
• Payment of the registration fee has been received (One percent of the deal value plus Rs 100 pasting charges have to be paid as registration charge)
• The amount of stamp duty
• The name of the person who is paying the stamp duty (as a standard practice, the buyer pays the stamp duty)
• Two witnesses' names and addresses