For buying a house, the deed of sale is one of the most important documents a person can possess. It validates you as the owner of the property by acting as legal proof of ownership. So, for signing a deed, it's best to not rush into things. Make it a point to scrutinize everything as once a legal document has been signed, there's no alternative but to take whatever has been written as the final word on any conflicts regarding the property.
Furthermore, there are a few essentials which should not be ignored since the deed of sale is the most vital document. Ideally, one should check the below clauses and specifics thoroughly:
1. Vendor & Purchaser personal information: Seller names should always be as per the 'Sale Deed' document only. PAN and Aadhaar information should be captured correctly. For NRI Sellers, instead of Aadhaar No. Passport numbers can be captured. These three are known to be the most important identification documents for the validation of the process.
2. Property details: The details of the property should be identified in the 'Sale deed' document. Attention to all the details of the property in question including 'Super built up-area', 'Built-up area', car parking-open/covered and car parking slot numbers should be clearly stated in the Sale Deed document. In addition, a buyer has to be mindful of the total 'saleable area' of the property. Attention to detail in terms of Survey numbers of the property and land area is a must. Example: If the property sale deed document has a super built-up area of 1500 square feet but while drafting and capturing the details in the Deed of sale it gets entered as built-up area instead of super built up will be inaccurate.
3. Indemnity Clause: Although the clause on indemnity is fundamentally stated in the deed of sale, it should still be captured clearly and exclusively in the document to protect and safeguard both the parties from any financial loss in the future or any adverse claim which may arise due to defect in title of the property.
4. Additional space/car parking: Purchasers should be conscious of capturing the details of any additional room, terrace, or car parking in the Sale deed document. An expert's guidance must be taken here to understand how to get complete ownership of the terrace, additional space, car parking etc. A thorough check is needed to conclude if the details are required to be captured in the recitals or in the Schedules of the Sale Deed. Henceforth, it is advisable to hire a legal practitioner who is adept at handling real estate transactions.
5. Accurate and precise payment information: The dates, payment reference numbers, cheque details, online transaction numbers, and Sale deed document numbers must be correct in words and figures.
6. TDS on sale of the property: As per the Income-tax Act, 1961, TDS is levied on the sale of all the properties. Purchasers are advised to check if the seller qualifies as a 'Non-Resident' or 'Resident Indian'.
The rate of TDS, amount of TDS, details concerning any Lower tax deduction certificates, Appropriate Challan numbers and the section under which the tax has been deducted should be precisely mentioned.
7. Ownership history: The history of the sale of the property is required to be verified and stated in the Deed of sale. If the present or the current sale is the third sale of the property, then details of all the previous owners, sale deed document numbers should be rightly mentioned. For Example, 'C' is in the process of purchasing a property from 'B'. 'B' purchased it from 'A' & 'A' purchased the said property directly from the builder. Here so, details of the previous transactions are required to be present in the current sale deed.
