Key Points to Check in The Property Deed

A property deed is a written and signed formal document which is used to transfer real estate ownership from the grantor—the previous owner—to the purchaser (the grantee). 

The Crucial Components Of The Deed

While each state has its own norms, most deeds need to have a number of fundamental components to be legally enforceable:

• They have to be put in writing.
• Both the grantor and the grantee must be able to transfer the property legally, and they must be able to accept the grant of the property. A person is deemed to be a grantor if they possess the legal rights over the said property.
• It is necessary to verify both the grantor and the grantee.
• A complete description of the property needs to be mentioned.
• All deeds in the conventional form contain the necessary legal text to transfer the property.
• If more than one person owns the property, the grantor or grantors must sign the deed.
• The grantee or a representative of the grantee must legally receive the deed.
• The grantee must agree to the deed. The grantee often accepts deeds, but under certain conditions, the grantee may refuse delivery of the deed.

Key Points To Check In Property Deed 

1. Personal information

The entire seller's information must be included in the agreement. The father's name, residence, PAN, Aadhaar, and bank account information must be included. The exact address of the property and the municipal, tehsil (administrative division), or collector's land registration number must also be included. There should be two witnesses to the agreement, one from the buyer's and one from the seller's side.

2. Property records

The seller must attest to the agreement's integrity. Additionally, he must make it abundantly evident that the transfer of ownership is taking place in a legitimate manner. The agreement must state that all debts owed on the property have been paid in full before the transfer date. 

3. The date of possession

The purchaser must consider the property's ownership date when transferring the property. The developer is required to transfer possession within the time specified in the contract, as it is the day the buyer is meant to take possession of the property. Moreover, the buyer has the right to file a lawsuit if possession is not provided by that date.

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4. A schedule of payments

The paragraph that establishes the payment schedule lays down the total sum to be paid and the timeline within which it is to be paid. If the payment is made in instalments, the payment plan must explain each instalment in detail. This helps to eliminate any potential uncertainties in the future. The contract must include all relevant payment information from the buyer, including any applicable mortgage information.

5. Termination

The termination clause outlines the penalties imposed on the parties if they violate the code of conduct. In addition, either party may terminate the agreement under a "termination by convenience" clause in the contract.

6. Dispute settlement

The dispute resolution clause outlines the procedure for the parties to settle their issues. This is an alternative to litigating the issue to resolve it. Besides this, adjudication and mediation are further methods for resolving business contracts.

8. Sanctions

The purchase agreement should contain a penalty clause that outlines milestones and the consequences of failure from the seller and the buyer.

The buyer will benefit from registering a legal purchase agreement since it protects him from legal issues at any point during ownership or potential resale. Once the purchase agreement is written and registered, no changes can be made. The buyer's permission must be acquired before making any changes, and an amendment will be added to the contract.

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Conclusion
Any title transfer of any property requires a deed. For the deed to be valid under the law, it must include these key components. Also, a real-estate attorney should always be consulted while finalising such deeds.

FAQs

 

Q1. Is it required to register real estate?
Ans. Every time a property changes hands, it must be registered in the name of the new owner, according to the Registration Act of 1908. It mandates that any documents that 'create, declare, assign, limit or extinguish any right, title, or interest in an immovable property valued at Rs 100 or more must be registered. 

Q2. Should the seller/buyer be present during registration?
Ans. At the time of registration, the buyer, the seller, and two witnesses must be present at the registrar's office. If either the buyer or the seller is an NRI and unable to attend in person, then their authorised agents in possession of a power of attorney must attend.

Q3. Is it possible to register my home online?
Ans. Most states need buyers to go to the sub-office registrar to register the properties. However, certain states have created services to assist landlords in registering their properties online. These online tools allow for the registration of both plots and flats.