Agreement of Sale Can Be Registered: A Step-by-Step Guide for Homebuyers
If you are in the process of buying or selling a property, you must be familiar with the term “agreement of sale.” Also known as a sales contract or purchase agreement, it is a legal document that outlines the terms and conditions of a real estate transaction between a buyer and a seller. However, to make the agreement legally binding, it is crucial to register it with the local authorities. In this article, we`ll discuss the importance of registering an agreement of sale and the step-by-step procedure to do so.
Why Register An Agreement of Sale?
Registering an agreement of sale is an essential step in a real estate transaction. It not only makes the agreement legally binding but also offers important benefits to both the buyer and the seller. Here are some reasons why you should register an agreement of sale:
1. Protection of your interests: Registering the agreement of sale ensures that the property`s ownership is legally transferred to the buyer. It also safeguards both parties` interests and protects them from fraudulent activities.
2. Easy access to credit: Registered agreements of sale are considered legal documents and can be used as collateral to obtain credit from banks and other financial institutions.
3. Avoidance of future disputes: A registered agreement of sale provides proof of ownership and can help avoid any future disputes related to the property`s ownership.
Step-by-Step Procedure to Register An Agreement of Sale
Now that you understand the importance of registering an agreement of sale let`s discuss the step-by-step process to do so.
Step 1: Get the necessary documents
To register an agreement of sale, you will need the following documents:
– The original agreement of sale
– A copy of the property`s title deeds
– Proof of payment of stamp duty and registration fees
– An identity proof of the property buyer and seller
Ensure that all the documents are in order before proceeding with the registration process.
Step 2: Payment of stamp duty and registration fees
Before registering an agreement of sale, you need to pay the stamp duty and registration fees. These charges vary depending on the value of the property and the state where the property is located. It is recommended to consult a lawyer or a real estate agent to determine the exact amount you need to pay.
Step 3: Visit the sub-registrar`s office
To register an agreement of sale, you need to visit the sub-registrar`s office where the property is located. Carry all the necessary documents and pay the applicable fees to the sub-registrar office. They will then verify the documents and register the agreement of sale.
Step 4: Collect the registered agreement of sale
After the registration process is complete, collect the registered agreement of sale from the sub-registrar`s office. This document serves as proof of ownership and can be used in case of disputes or when applying for credit from financial institutions.
Conclusion
Registering an agreement of sale is an important step in a real estate transaction. It provides legal protection to both the buyer and the seller and offers numerous benefits. The process of registering an agreement of sale is simple, and you can consult with a lawyer or a real estate agent if you have any queries or require assistance. So, if you are in the process of buying or selling a property, make sure to register the agreement of sale to avoid any future disputes and protect your interests.
