Sale/Purchase Deed is again one of the major species of the property deeds & documents. In certain cases it is a culmination of performances of the parties under the Agreement for Sale. A lawyer entrusted with the property documentation undertakes drafting of Sale/Purchase Deed subsequent to the drawing up of Search Report and issuance of Certificate of Title opining positively in favour of continuing the deal.
Purchase Deed assumes various forms depending upon the nature of the property and the laws that govern such property. For e.g. if the property is in the form of land/freehold land either open, vacant or with the constructed structure then in such case the Purchase Deed is commonly called in India as the SALE DEED; if it is a flat in a housing society then the document shall be termed as the Deed of Assignment; if it is Apartment then the lawyer will draft for you a Deed of Transfer of Apartment. If the property comprising only of the structure above land is situate within the Cantonment Board area under the Ministry of Defence then the document to be drawn and executed shall be the Conveyance Deed
By Purchase Deed the Seller actually sells, passes and transfers for value all his/her title, ownership and all legal and equitable interest in the property to and in the name of the Purchaser.
The instrument of Sale/Purchase Deed is primarily governed by the special legislation of TRANSFER OF PROPERTY and incorporates the passage of title, ownership and interest in the property to the purchaser thereof. With the execution and registration of the Sale Deed the purchaser obtains and acquire the perpetual and unequivocal dominion and control in the form of complete, entire, absolute, heritable and transferable estate and ownership, created by the Sale/Purchase Deed, over the property.
While either of the parties to the Sale/Purchase Deed is a Foreigner (Non-Indian) then the provisions of the Foreign Exchange Regulation Act 1999 (FEMA) AND Reserve Bank of India Act 1934 are also attracted and the compliances thereunder become mandatory which aspect the law firm is highly expected to address.
The Deed of sale/purchase is administered by various Union and State statutes and legislations as applicable to and affecting the nature of the property transacted as for e.g. the Indian Registration Act 1909; Cantonment Act 1924 the Maharashtra Regional and Town Planning Act, 1966; Maharashtra Land Revenue Code 1966; the Maharashtra Rent Control Act, 1999; the Urban Land Ceiling (Ceiling And Regulation) Act, 1976; the Indian Easements Act, 1882; Land Acquisition Act, 1894; Laws relating to Freehold & Restricted Properties; Laws relating to Flats & Apartment Ownership; Laws relating to Agricultural & Non-Agricultural lands; Guardian and Wards Act, 1890 to name the few.
The instrument of Sale/Purchase may be in the following Forms:
- Sale of free hold property
- Sale of leasehold property
- Sale by auction of immoveable property
- Deed of conveyance of freehold land
- Deed of conveyance (where consideration is payable by instalments)