Deed Drafting

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Deed Drafting

Apartnership deed is a written legal document to avoid unnecessary misunderstanding, harassment and unpleasantness among the partners in the event of any dispute. For mutual benefit, the registration of Deed of Partnership is made under the Indian Registration Act, 1908 so as to avoid apprehension of the Deed of partnership being destroyed or mutilated in the possession of the partners. A deed of partnership is required to be made out and registered under the Indian movable property Act together with other movable properties involved. An instrument of partnership may be constituted by more than one document.

Requirements of Sale Deed

Sale Deed is a legal written document executed by the vendor and the purchaser which evidences the sale and transfer of ownership of the tangible immovable property.
A sale deed is one of the most valuable legal documents in a purchase or sale of a property. A sale deed is drafted by legal draftsman on a non-judicial stamp paper of the requisite value as prescribed by stamp act of the particular state concerned.

It is the parties who have to decide that which deed has to be prepared e.g. THIS DEED OF SALE or THIS DEED OF MORTGAGE or THIS DEED OF LEASE etc. and based on which there will be transfer of ownership of immovable property

An absolute sale deed must contain the names, age and respective addresses of parties to the transaction and both the parties i.e. seller and buyer must be competent to enter into a contract so that it will not affect the validity of the valid sale.

A valid sale deed must contain full description of the property which is the subject matter of sale. It must include identification number, total plot area, construction details as well as its location with its surrounding areas. A schedule of the property must be included in the sale deed which will define the exact location where the property is actually situated.

An agreement for sale is the main requirement of the drafting of the valid sale deed and both the parties must mutually settle the terms and conditions of the agreement so that it will not affect the rights of the parties. A sale deed always precedes agreement to sell.

A seller must clear all the statutory charges i.e. property tax, electricity charges, water bills, cess, society charges, maintenance charges and all other charges relating to the property before the execution of the sale deed.

Once the Sale Deed is prepared all the parties to the deed shall execute it by affixing their thumb impression or full signature. Each page should be signed by the seller and buyer. Any alteration, addition or deletion is to be authenticated by full signature of the parties. Execution of the sale deed requires to be witnessed by two witnesses. The witnesses shall give their full particulars and addresses.

A sale deed must include the clause stating the sale consideration/amount as agreed between the seller and the buyer which has to be paid by the buyer to the seller on the execution of sale deed. A sale amount should be clearly stated in sale deed as agreed in the agreement to sell

According to Section: 17 of ‘The Registration Act, 1908’, the registration of a tangible immovable property is compulsory if the value of the respective property exceeds rupees 100/- and it is the registration of the property which makes the sale valid.

Once all the terms and conditions have been settled between both the parties, a sale deed is prepared. The executed sale deed should be witnessed by at least two witnesses one from seller side and one from buyer side, giving their full names, addresses and signatures.

Once the property gets registered under the registration act all the original documents of the sold property to be hand over by the seller to the purchaser. All the statutory rights along with ownership, possession, title, interest will get vested in favour of the purchaser.

Usage and Execution of deed drafting

Usage

This Partnership Agreement can be used by Partners wishing to form a partnership for doing business together. It is strongly recommended or encouraged for partnerships to have some kind of agreement among themselves, in case future disputes prove difficult to arbitrate. It is meant to promote mutual understanding and avoid mistrust. It indicates the terms on which the business corporation is founded.

Execution

The partnership agreement must be printed on a Non-Judicial Stamp Paper with a value of Rs.100/- or more. The partnership agreement is usually signed in the presence of all the partners and each of the partners would retain a signed original for his/her records.


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