Sale deed is a legally binding document specifically made to transfer the right, title and ownership of immovable property from one person to another in exchange for a price.Sale deed is implemented by Registration Act of India. A sale deed is considered to be valid only when it is signed by both the seller and the buyer and both the parties has to comply with the terms and conditions mentioned in the sale deed. A sale deed needs to be registered under The Registration Act, 1908 within four months from the date of execution.The registration is done by the Sub Registrar of Assurances of the jurisdiction, where the property is purchased.

MEANING OF TERMS INVOLVED IN A SALE DEED

Seller/Transferor

Seller is a person who has current ownership of the property and is willing to sell his property for a price.

Buyer/Purchaser/Transferee

Buyer or purchaser or transferee is a person who is willing to buy the property.

Witness

Witness is a person who signs on the sales deed acknowledging to the fact that the buyer and seller have signed the sale deed in front of him.

Stamp duty

A duty levied on the legal recognition of certain documents by the government.It is a kind of property tax which needs to be paid to the government while a property is being sold.It is calculated on the market value or the agreement value whichever is higher and stamp duty charges vary from state to state.

Registration Fee

The registration fee is additional to the stamp duty charges. Registration fee needs to be paid to get the property transferred and registered in your name. The fee is either 1% of the market value or the agreement value, whichever is higher, however, subject to a maximum amount of Rs. 30,000. This fee is different in different states.

Title

Title is the legal way of saying you own a right to something. Title refers to ownership of the property, meaning that you have the rights to use that property. It may be a partial interest in the property or it may be full. However, because you have title, you can access the land and potentially modify it as you see fit. Title also means that you can transfer that interest or portion that you own to others. However, you can never legally transfer more than you own.

Execution

After the preparation of sale deed it is executed when all the parties involved like seller, buyer and witnesses sign or make thumb impressions on the document.

Registration

To make a sale valid, a sale deed needs to be registered under Registration Act,1908 and this can be done in the sub registrar’s office in presence of both the parties.

Proof of Registration

The certified copy of the registered lease deed with the name of the buyer can be obtained from the registrar’s office which will act as a proof of registration.

Sale Price

The price of the property agreed upon by both, the seller and the buyer.

Mode of Payment

How the payment for the transaction is being made like through cash,cheque or online transfer etc.

Sale agreement

It is an agreement between buyer and seller which clearly mentions details about the price agreed upon for the property and details of buyer and seller.

WHY YOU REQUIRE SALE DEED?

Sale Deed is very important document while purchasing any immovable asset. Sale Deed is a written agreement for transfer of rights for property from one person to another person. Sale gives rights to buyer to use property for lifetime. Sale Deed is only valid document which gives lawful right to purchaser for use the property. One can not claim rights of property without sale deed.

DOCUMENTS REQUIRED

• Draft of Sale Deed/Title deed/Conveyance Deed
• 7/12 extract or RTC (Records of Rights and Tenancy Corps) or
• Khata Certificate and Extracts
• Joint development agreement, GPA, & Sharing/supplementary Agreement, between land owner and builder
• Power of Attorney if any
• Building plan sanctioned by the Statutory Authority
• Allotment Letter from the Builder/Co-Operative Society/Housing Board/BDA.
• If any loan on the property (Current or past) / Original Property Documents with Bank
• Sale agreement with the Seller
• All title documents of land owner
• A Copy of all registered previous agreements (in case of resale property)
• NOC from Apartment Association (in case of resale property)

Gujarat property registration procedure is governed by the Registration (Gujarat Amendment) Act, 1908. Any transactions that involve an immovable property should be registered to ensure clear transfer of title to the property owner. Once the property registration procedures has been completed, it becomes a permanent public record. Immovable property registration process involves the preparation of deeds, paying the applicable stamp duty and registration fees for the deed to be legally recorded. The Inspector General of Registration, Government of Gujarat, manages the registration or transfer of property in Gujarat. In this article, we look at the Gujarat Property Registration in detail.

Know more about  Gujarat Records of Rights 

Registration (Gujarat Amendment) Act, 2013

Registration (Gujarat Amendment) Act provides details regarding the method of registering documents (deed), information regarding the legal rights and obligation affecting the particulars of immovable property. According to this act, the immovable property includes land, buildings, lights and fisheries.

Section 17 Registration (Gujarat Amendment) Act – Compulsory Registration

Section 17 of Registration (Gujarat Amendment) Act governs the different categories of the deed for which registration is obligatory. The following type of deed need to be compulsorily registered:

• Instruments which extinguish or title to a property of a value of above one hundred rupees.
• Instruments of the gift of immovable property
• Lease of immovable property of any term exceeding one year or from year to year

Section 18 of Registration (Gujarat Amendment) Act – Registration Optional

Section 18 of the Registration (Gujarat Amendment) Act governs the deeds of which registration is optional, that is explained here:

• Instruments other than wills and gifts relating to the transfer of immovable property, the value of which should be less than Rs.100
• Lease of immovable property for less than 12 months
• Instruments are acknowledging payment of any consideration
• Instruments are transferring any order or order of a court where the subject matter is immovable property, the value of which should be less than one hundred rupees.

Purpose of Gujarat Property Registration (Deed Registration)

Gujarat property registration of immovable property furnishes the below-mentioned benefits:

• According to the Gujarat transfer of property act right, title or interest can be acquired if the deed is registered.
• The document registration will be a permanent public record once it’s registered with the concerned office
• Anyone can inspect the property registration public record and get a copy of registered deed
• Gujarat registration of property providing the information to the general public that the ownership title has transferred to the new owner.
• Property registration enables any citizen to verify whether the property has been previously encumbered while purchasing the property
• If a person intends to buy immovable property in Gujarat, he/she can easily verify the record-index available in the concerned office. The citizen can ascertain in whose name the last transfer deed has been registered.

Note: As per the Gujarat Registration Act, if the immovable property has not been registered, such property will not be admissible as evidence in the court of law.

Prescribed Authority

The deed needs to be presented for registration at the office of the Sub-Registrar within whose sub-district the whole portion of the land/property to which such report relates is situated.

Documents Required

Documents required for applying for Gujarat property registration is explained in detail here.

• Input Sheet – It should contain the details of the document with the signature of concerned parties (Owner & Buyer)
• Application form (No. 1) – If the document is covered under section 32-A of the Gujarat Stamp Act, 1958 to determine the market value of the property
• Proofs of the identity of executing and claiming parties and witnesses
• Proofs of ownership right of the property
• Original and true copy of the Instrument of power of attorney, if the document is signed or presented using it

Stamp Duty for Gujarat Deed Registration

Stamp duty is one of the legal tax payable by the property owner as proof for any transaction involves the immovable property. The rate of stamp duty for registering the sale, conveyance deed of immovable property registration in Gujarat is tabulated here:

S.No	Stamp Duty	Rate
1	The basic rate of Stamp duty	3.50 percent
2	Surcharge at the rate of forty  percent on basic rate	1.4 percent
3	Total Stamp duty	4.90 percent

Rs. 4.90 for every Rs. 100 need to be paid as stamp duty for Gujarat Property Registration.

User Registration Fee

For registering property online in Gujarat, the applicant needs to pay a registration fee along with stamp duty to Government. The property registration fee needs to be paid for the maintenance of ownership record. The basic rate of Registration Charge is 1.00 percent.

• Registration charge is not applicable if the sale is executed in favour of the female buyer
• For more than one buyer for a single property, all buyers should be female for availing such waiver of registration charge.
• Additional charges for registration are as follows
  • Advocate fees as per rate from time to time
  • Folio fees of Rs. 10 per page or at the rate as for May revised by the government from time to time
  • Index fees or Rs. 50 per copy

Prepare a Deed

Before applying for Gujarat property registration, the document deed needs to be prepared. Deed preparation for registration can be prepared personally written by the executants or through Deed writers by paying the applicable fee. Fee for deed writers will be based on the value of the property specified in the document.

The language of a deed presented for registration should be in an expression commonly used in the district existing in Gujarat.

Note: The Registrar empowered to refuse to register the property if the language prescribed in the deed is not commonly used in the Gujarat districts unless an accurate translation accompanies the report into the language widely used in the region.

Download Deed

To download Deed format for registering deed in Gujarat, the applicant needs to visit the official website of Inspector General of Registration. From the home page click on the Model Draft option, the link will redirect to new page.