Anda di halaman 1dari 11

Prepare a valid sale deed of Flat (NA) at NCR Jurisdiction of worth 90,00,000 (Rupees Ninety Lacs) only

Interim Project submitted by Abhinav Dutt Division A, Roll No. 08, Class: BBA/LL.B of Symbiosis Law School, Noida Symbiosis international University, Pune

In July-August, 2013 Under the guidance of Prof. Vikram Singh & Prof. Kiran Kale Symbiosis International University, Pune

CERTIFICATE

The project entitled " submitted to the Symbiosis Law School, NOIDA for Property Law as part of internal assessment is my original work carried out under the guidance of Prof. Kiran Kale and Prof. Vikram Singh from July, 2013 to September, 2013. The research work has not been submitted elsewhere for award of any publication or degree. The material borrowed from other sources and incorporated in the work has been duly acknowledged. I understand that I myself could be held responsible and accountable for plagiarism, if any, detected later on.

Signature of the candidate Date:

ACKNOWLEDGEMENTS

It is a great pleasure for me to put on records my appreciation and gratitude towards Dr. C.J. Rawandale, Director for his immense support and encouragement all through the preparation of this report. I would also like to thank our faculty Prof. Kiran Kale and Prof. Vikram Singh (Project Guides) for their valuable support and suggestions for the improvement and editing of this project report. Last but not the least, I would like to thank all the friends and others who directly or indirectly helped us in completing my project report.

INDEX

S.No. 1 2 3 4 5 6 7 8 9 10 11 12.

Topic Introduction Process Summary Report Assumptions for the Project Documentation Requirements Additional Requirements Relevant Statutory Provisions Discussion/Notes Verification of Title Sale Deed Photograph of building Floor Plan Interim Submission

Page 5 5 6 6 7 7 8 10

Introduction
A Sale Deed is one of the most valuable legal documents in the purchase or sale of a property. It is governed by the provisions of section 17 of the Indian Registration Act, 1908 and is an important for the buyer / transferee as well as the seller / transferor. The purchase or sale of a property is not legally complete until a sale deed is signed both by the buyer and the seller. Usually a sale deed is signed only after both the parties are satisfied and agree to comply with the terms and conditions mentioned in the sale agreement, if earlier executed between them. Sale is defined under section 54 of The Transfer of Property Act, 1882. In the said section it is mentioned that a contract of sale of an immovable property does not create any interest or charge on such property. Such a transfer of property, however, implies the passing of a general and absolute title.

Process Summary Report

Fig: Flowchart showing the procedural and statutory requirements for executing a valid S.D.

Assumptions for the Project:


a. Profile of Parties: a.1 The vendee is of the male persuasion. a.2 The vendee is not a minor i.e. not under 18 years of age. b. Profile of Property: b.1 The property in question is a Flat. b.2 The flat is being sold by a private party who currently has its possession and title. c. Place of execution of S.D. c.1 The sale deed is being executed at an urban area within the N.C.R of Delhi.

Documentational Requirements:

1. A Deed of Sale requires a stamp duty of 6% in rural areas and 8% (including 2% municipality duty) in urban areas. If the sale is executed in favor of women then there is a 2% exemption on the S.D. both in urban as well as in rural areas.1 2. Registration fee is 1% of the total value of the consideration in Sale Deed plus 100 for pasting charges payable through Bank Pay order. 3. Non Judicial Stamp papers which are available in denominations of 10, 20, 50, 100, 500, 1000, 5000, 10000, 15000, 20,000 and 25,000. 4. The Non Judicial Stamp Papers are issued to the vendee (buyer) by the Cashier, District Treasury. The vendees (buyer) name is written at the back of the stamp paper along with the signature and seal of the Cashier, District Treasury (Sub-Treasury). 5. The stamp papers of the value of 10,000 and above can be purchased directly from the Sub-Treasuries. Lower valued stamp papers can be bought from a stamp vendor. 6. In case of non-availability of Non Judicial Stamp Papers, Special Adhesive Stamp Papers can be used an alternative. Special Adhesive Stamp Papers come in denominations of 1, 2, 5, 10, 20, 50, 100, 500, 1000 and 5000. 7. For an S.D. of a flat, its exact location as to the Ward/Pargana, Mohalla/Village and other details of the property are important. 8. An S.D. is executed in the District Sub-Registrars office (usually through an advocate). 9. For an S.D. of a flat, the vendee pays for the super-area (and not the carpet-area). 10. The plan of the flat and the photograph of the building are necessary requisites. 11. The photographs of the vender(s), vendee(s) and atleast two (2) witnesses are needed. 12. The vendor(s), vendee(s) and two witnesses have to be physically present during the execution of the S.D. Their finger-prints are also indispensable requirements for the same.

Additional Requirements:

The specific provisions regarding stamp duty leviable on 65 types of instruments are given in Schedule 1-A of the Indian Stamp Act, 1899.

1. The stamp duty payable on the Sale Deed should be as per Circle Rate fixed by the Revenue Department of the Government of N.C.T. of Delhi for the locality in which the property is situated. If the sale consideration is more than the minimum circle rates fixed by the Government, then the stamp duty will be calculated on the sale consideration amount mentioned In the sale deed. 2. Both the Vendor(s) and vendee(s) have to be physically present alongwith their two passport size photographs and identification documents i.e. Aadhar Card and PAN Card. 3. The two witnesses have also be present with their identification for Presentation before the Sub-Registrar for the registration of the Sale Deed.

Relevant Statutory Provisions:


1. Section 54 of The Transfer of Property Act, 1882 " Sale" defined. Sale how made.-" Sale" is a transfer of ownership in exchange for a price paid or promised or part- paid and part- promised. Sale how made.- Such transfer, in the case of tangible immoveable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. In the case of tangible immoveable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. Delivery of tangible immoveable property takes place when the seller places the buyer, or such person as he directs, in possession of the property. Contract for sale.- A contract for the sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties. It does not, of itself, create any interest in or charge on such property. 2. Section 17 of The Registration Act, 1908 3. Schedule 1-A of The Indian Stamp Act. 1899

Discussion/Notes/Conclusion
8

To purchase a Flat in N.C.R. there can arise two situations: 1.a. The Flat belongs to a builder which has not been occupied by anybody earlier: The profile of the builder needs to be verified in depth. If the builder is reputed company then there usually is no problem, or so it is assumed. If it is a new builder then its modus operandi of monetary transactions demands proper scrutiny 1.b. The Flat is occupied by a private party who is willing to sell: If the owner(s) is/are private person(s) then it needs to be verified that he/they is /are the real owners. To make sure, the buyer gives an ad in the newspaper that he wants to buy the particular flat from its owner (owners profile is to be published) and if there is any other claimant other than the one mentioned in the ad then he should contact the buyer or approach the court to establish his ownership. When 1a and 1b are settled the buyer approaches the local Sub-Registrars office for further advancement. The steps are: 2. To know the exact circle rate for the property below which no transfer can take place. 3. The circle rate at its minimum or more can may be the final price of the flat. 4. The price of the flat so determined would become the true basis for fixing the price of the Non-Judicial stamps which is to be issued from the District Treasury through proper challan. There is a separate fee for issuing the stamp paper. 5. When proper Non-Judicial stamp papers are issued (in the name of the vendee) the document is prepared in a manner so that all the stamp papers contain some part of the document i.e. no stamp paper is left vacant while the deed is made. 6. Signatures of the vendor(s) and the vendee(s) are to be made on each page of the deed.

Verification of Title
In the present virtual transfer, the transactional history of the property subject to transfer via a sale deed is as follows: 1) A transfers the said property (Flat situated at Indirapuram, NR-Delhi) to one B, thereby transferring ownership rights to him. This transfer takes place 6 years ago, i.e. on 21/08/2007. 2) B, on 25/08/2009 transferred the Flat through sale to one C. C is the new owner of the Flat till he transfers his ownership rights to Mr. Sher Singh Gill and Mrs. Shilpi Arora on 22/08/2011. 3) The present transfer takes place between vendors Mr. Sher Singh Gill and Mrs. Shilpi Arora and vendee Mr. Ravinder Singh Jhunjhunwala whereby the vendee has inherited a bundle of ownership rights.
10

Reasons for Transfer


Mr. Sher Singh Gill is a servant of the Indian Air Force, Government of India. He is selling this flat because he is being transferred to Patna, Bihar. This shall be deemed to be a legal necessity.

11