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Tata Capital > Blog > Loan for Home > What Is Sale Deed in Home Loan?

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What Is Sale Deed in Home Loan?

What Is Sale Deed in Home Loan?

Are you planning to buy a house? Are you confused with questions like what is a sale deed, why do you need a sale deed, what is the sale deed of a property, what is the sale deed of a flat, etc.? Well, buying a house isn't easy and requires you to carefully go through a lot of important paperwork. 

One such essential document is the property sale deed. When you're applying for a home loan, you have to submit the property sale deed among other relevant documents to the lender. The lender will have possession of the deed throughout the loan duration.

What is a sale deed?

If you're new to real estate investments, you'd probably be wondering what the meaning of a sale deed is. A property sale deed is a legal document that serves as evidence of the transfer of property ownership from the seller to the buyer. The transfer is legally complete only after both parties sign the sale deed. 

When talking about what is a sale deed, many people confuse it with an agreement of sale. However, both these documents are different. While a sale deed is evidence of transferring ownership of the property, an agreement of sale indicates the contract between the buyer and seller to transfer property ownership in the future.

A sale deed includes all details of the transaction like-

  • Details of the buyer and seller
  • Details of the property
  • Financial details and mode of payment
  • Details of property possession
  • Indemnity clause, etc.

Benefits of a sale deed

A sale deed is an important legal document while buying a house. To further understand what a sale deed document is, let's look at some of its benefits.

  • It protects the interest of parties involved and guards them against legal disputes
  • It helps the buyer get all relevant details of the property like its location, construction area, etc.
  • It is a legally enforceable document that recognizes the property transaction
  • It serves as legal evidence in case of a property dispute

What is a sale deed in a home loan?

When you buy a house, it is important to understand what the sale deed of a property is or what is the sale deed of a flat. You get legal ownership of the house only after you and the seller sign the property sale deed. The lender will keep the original document until the repayment of the loan and will return it within 15 days of repayment.

Documents required for a sale deed

If you're wondering what the sale deed documentation requirement is, here is a list to get you sorted-

  • The extract
  • General power of attorney
  • Copy of the building plan
  • No objection certificates
  • Allotment letter
  • Agreement of sale
  • Possession letter
  • Receipt of payment
  • Receipt of property tax
  • Encumbrance certificate
  • Completion certificate
  • Occupancy certificate

What is the sale deed registration process?

Now that you know what the meaning of a sale deed is and what the required documents are, let's understand what a sale deed registration process is. To register for the sale deed, you can either visit the office of the sub-registrar or book an appointment online. The parties involved in the transaction will have to visit the facilitation centre for document verification. After all formalities are done, the sub-registrar will inspect the documents for any discrepancies. 

Once the sub-registrar accepts the documents and you complete all required formalities, you will receive a receipt. You can obtain the sale deed from the sub registrar's office within 15 days of the process.

Things to consider while registering for the sale deed

Here are a few things you must keep in mind while registering-

  • The property must be free from financial or legal liabilities

Make sure you obtain a non-encumbrance certificate to ensure the property is not under any liabilities. You will also have to produce this document while applying for a home loan.

  • The seller must complete all payments before transferring the ownership

Before registering for the sales deed, make sure there are no outstanding payments for the property like electricity bills, water bills, maintenance expenses, property tax, etc. The seller must complete all payments before transferring the ownership of the property. You must also understand what the sale deed of a property is and what is the sale deed of a flat, along with the documents required for each. 

Get an easy home loan with Tata Capital

Whether you're buying a house or a flat, a sale deed is one of the most vital documents you must obtain. Now that you understand what the meaning of a sale deed is, why is it important and what is a sale deed in property and flat, you must read all the terms and conditions mentioned in the deed carefully before signing it.

Are you ready to act on your dream of owning a home? Get a home loan from Tata Capital and enjoy a seamless loan application process. With a wide range of home loans, you get attractive home loan interest rates, flexible repayment plans, longer loan tenures, high home loan eligibility, and much more. You can also visit our website and calculate your potential EMIs in seconds with our home loan EMI calculator

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