What to Check in a Sale Deed or Any Property-Related Agreement
Property transactions are among the most significant financial decisions most people make in their lifetime. Whether you’re buying a flat, a plot, or agricultural land, the legal paperwork involved—especially Sale Deeds and related agreements—plays a crucial role in protecting your investment. In this article, we outline the basic but essential things you must check in any property-related agreement before signing on the dotted line.
1. Correct Details of Parties Involved
Make sure the names, addresses, and identification details of both the buyer and seller (or lessor/lessee) are accurate and match their government-issued ID proofs and PAN cards. Errors here can cause complications during registration or while securing bank loans.
2. Clear Title and Ownership
The seller must have a clear and marketable title to the property. Look for declarations in the agreement that:
- The seller is the sole and absolute owner
- The property is not under dispute or encumbrance
- There are no third-party claims or litigation pending
Ask for supporting documents such as:
- Mother deed
- Encumbrance certificate
- Latest khata and tax paid receipts
3. Proper Description of the Property
Ensure the agreement contains a full and correct description of the property:
- Survey or site number
- Measurement and boundaries
- Property type (land, flat, villa)
- Floor and flat number (for apartments)
Any error or ambiguity can lead to disputes later, especially in joint developments or layouts.
4. Sale Consideration and Payment Terms
The sale price should be clearly stated along with the payment schedule:
- Advance paid
- Balance amount and due date
- Mode of payment (bank transfer, cheque, etc.)
Receipts for all payments must be collected and referenced in the agreement.
5. Possession and Handover Date
For under-construction or newly built properties, the agreement must specify:
- The date of possession
- Any penalty for delay
- Handover conditions (e.g., electricity, water, occupancy certificate)
In ready-to-move properties, possession should ideally coincide with or follow shortly after registration.
6. Indemnity and Representations
Include clauses where the seller indemnifies the buyer against any future legal complications, such as:
- Boundary disputes
- Government acquisition
- Tax arrears or dues
This adds a layer of legal protection for the buyer.
7. Cancellation and Dispute Resolution
The agreement must spell out the procedure in case either party defaults. Important clauses include:
- Cancellation conditions
- Refund of advance (if any)
- Jurisdiction of courts or arbitration clause
8. Registration and Stamp Duty
Ensure clarity on who bears the costs of stamp duty, registration fees, and legal documentation. Typically, these are paid by the buyer, but this can be negotiated.
Never rely solely on unregistered agreements. Only a registered sale deed confers ownership.
9. Building Approvals and Compliance (for constructed properties)
If buying an apartment or built property, verify:
- Building plan approval
- Completion and Occupancy Certificate
- RERA registration number (if applicable)
Illegal constructions, even if sold legally, can later be demolished or lead to legal action.
Reading and understanding your property documents is non-negotiable. While lawyers can guide you, it’s crucial for buyers and sellers to be informed and cautious. Every clause in a sale deed or agreement has legal and financial implications. Missing a detail could mean years of court cases and financial loss.
When in doubt, consult a property lawyer or legal due diligence expert. Protect your investment with informed decision-making.
For expert help with agreement drafting, review, and legal property checks, visit RealtyLegal.in
