Frequently Asked Questions On Sale Deed

QUERY #1

Can a registered sale deed and JDA be cancelled? If so, what is the stamp duty to be paid?

ANSWER:

The short answer to your query is YES. A registered sale deed can be cancelled.

A sale deed is a legal record or document that is used to certify the ownership of property. This document is governed by the Registration Act of 1908. For the execution of a sale deed, information about both the buyer and seller like their names, addresses, and signatures are required. Both parties must sign the sale deed, along with two witnesses to attest the same, and their details shall also be recorded in the sale deed. Within four months of execution of the deed, it must be registered.

Cancelling or revoking a sale deed, while possible, is a complex legal process that can only be done for a valid legal reason. Meagre reasons like disinterest from the part of the buyer or seller is not a valid ground for the cancellation of a registered sale deed. Some of the reasons for the cancellation of a sale deed are as follows:

1)    Fraud: If the seller has intentionally tampered with important details necessary for the sale of the property, the buyer may cite fraud as a reason.

2)    Misrepresentation: Similar to fraud, any misleading claims made about the property can also be cited as a reason for cancellation.

3)    Force or undue influence: If consent was obtained from any of the parties through the use of unfair means like pressure, threat to harm or kill, etc., it is a valid reason to cancel a sale deed.

4)    Legal defects: If the process of transfer of the property or the transaction was carried out illegally, it is a valid reason for the cancellation of the sale deed.

The court might direct the defaulter to pay damages to the injured party for any debts or advantages they might have gained, if the court is convinced of the injured party’s claims and cancels the deed.

For a Joint Development Agreement, if the same consists of some clause regarding breach of trust or the breach of any condition, the land owner may terminate said agreement and file a suit in court for the cancellation of the JDA on the same grounds.

For the third question, the payable stamp duty is determined by each state individually and therefore varies with each state.

I hope this helps. Thank you for your time and patience!

QUERY #2

I own a flat and the sale deed for the same has both mine and my father's name on it. Unfortunately both my parents have passed away and I am their only child. Therefore, should I register any amendment to my sale deed with the registrar before selling the property or will it suffice to have the death certificate along with the current sale deed?

ANSWER:

The short answer to your question is NO. You need not amend the sale deed.

A sale deed is a legal record or document that is used to certify the sale or transfer of a property from the seller to the buyer. It is a valid piece of evidence that can be used to assert ownership over the property and is also necessary for further sale of the said property. The laws and regulations regarding the sale deed are mentioned in the Registration Act, 1908.

It is possible for two or more people to combine their resources and buy a common property under one sale deed. They will be the co-owners of said property once the transaction is complete. Unless the co-owners have created a written agreement that states the share each party will have on the property, the shares of each party will be proportional to the amount of money they had put in for the purchase of this property. If during such a scenario of co-ownership one of the co-owners passes away, their share of the property passes on to their legal heirs or to some other person as specified in their will.

The Hindu Succession Act, 1956, describes in detail on who may be the legal heir to a person dying intestate. As per section 8 of the same, the son is a Class I legal heir to a male dying intestate.

Therefore, since your father died intestate, the ownership of said property has automatically been transferred to you and does not require any additional amends to the sale deed.

I hope this helps. Thank you for your time and patience!

QUERY #3

I am planning to buy a plot from my relative whose name in the sale deed is slightly different from that on his other identity proofs.The sale deed is 22 years old. Could you please educate me on the legal processes involved in changing his name?

ANSWER:

The Indian Registration Act of 1908 mentions the use of a correction or rectification deed to correct any mistakes in the sale deed in its section 17. Although a correction deed can be used to add new information related to the property, rectify mistakes, or remove unnecessary ones, any modification that changes the very nature of the transaction of the deed is not permitted.

It must be noted that both parties to the original deed must be present for the execution of the rectification deed as their consent through signature is necessary. Also, the error to be rectified must not change the basic nature of the transaction of the deed. It must be minor and should be clearly mentioned during the process of rectification. This rectification must be consented to by both the parties involved in the original transaction, i.e the buyer and the seller. If the seller is not alive at the time of rectification, their legal heirs may be intimated for the same.

No limitation period has been mentioned for the rectification of a sale deed in our law, and therefore the time period of 22 years is not an issue for rectification.

It must be noted that if the original sale deed was registered, the rectification deed must also be registered with the appropriate authority in the same jurisdiction as the original deed. To make a rectification, either party must go to the sub-office registrar where the sale deed was originally registered. A stamp duty will also have to be paid which might vary depending on the deed.

I hope this helps. Thank you for your time and patience!

QUERY #4

We recently purchased a new property and only recently did I realise that my PAN number is incorrect in the sale deed. We want to rectify this mistake but the seller lives in another city and is hesitant to come here for a mistake that was caused by our negligence. How do we correct this mistake?

ANSWER:

A sale deed is a legal document that certifies the transaction or transfer of said property and acts as a valid evidence to ascertain the ownership of a property. It is governed by the Indian Registration Act of 1908. The same act also gives out provisions through which mistakes in a sale deed can be corrected.

In section 17 of the Registration Act of 1908, it is mentioned that a rectification or correction deed can be used to correct mistakes in a sale deed. A correction deed can not only be used to correct mistakes, it can also be used to add necessary information related to the property or remove any unnecessary information. Such mistakes must be minor and any rectification that changes the very nature of the transaction of the sale deed is not permitted. 

For the execution of a rectification deed, consent from both parties is required through their signature. They must therefore be physically present to sign the rectification deed. In case the original seller is now deceased, their legal heirs can be intimated and their consent must be taken for the rectification. 

If the original sale deed was registered, the rectification deed must also be registered with the appropriate authority under the same jurisdiction as the original deed. A stamp duty must also be paid, which might differ according to the deed. To make a rectification to a sale deed, either party must physically go to the sub-office registrar where the original deed was registered to apply for rectification. No limitation period has been specified by law for the rectification of a sale deed.

Therefore in this case, the PAN number being a trivial mistake not affecting the nature of the transaction of the sale deed, can be changed through a rectification deed. It must be noted that consent from the seller is required for the same and they must be physically present to sign the rectification deed.