Points to Remember When Executing a Sale Deed
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Ensure the property is free from encumbrances: Before executing the deed of sale, confirm that the property is free from any encumbrances, such as mortgages, liens, or claims by third parties. This is especially crucial for NRI selling property in India to avoid disputes later.
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Conduct a title search: Perform a comprehensive title search to verify that the seller is the lawful owner of the property. This is vital for the review of the agreement to sell, ensuring legal ownership and avoiding fraudulent transactions.
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Survey the property boundaries: Arrange for a survey to ensure the boundaries of the property match those mentioned in the documents. Accurate surveys are particularly significant when dealing with NRI inheriting property in India.
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Determine the property’s fair market value: Get a valuation done to assess the property’s fair market value. This assists in dealing with a fair purchase price and can aid in draftingg the sale deed.
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Negotiate a fair purchase price: Ensure that the negotiated price is fair and agreed upon by both parties. This step helps streamline the registration of the agreement to sell.
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Engage a lawyer to draft the sale deed: Hire an experienced lawyer to draft the sale deed to include all essential clauses and safeguard the interests of both parties.
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Sign the sale deed in the presence of witnesses: Both parties must sign the deed of sale in the presence of witnesses to confirm it is legally binding.
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Register the sale deed with the relevant authorities: The last step is to register the sale deed under the Registration Act of 1908 to validate the transaction legally. For NRI selling inherited property in India, ensure compliance with all applicable legal and tax regulations during this process.
Also Read: What Are the Things to Keep in Mind During Sale Deed Registration?