Common Documents You Need To Be Aware Of
In a real estate transaction, the buyer and seller deal with a number of documents and which need to be reviewed thoroughly. Here are some of the important ones you need to be aware of:
Sale DeedThis is the main legal document that is proof of sale and transfer of the property from the seller to the buyer. The deed has to be registered as soon as possible but before that, the sale agreement should be executed. During that process, you also need to ensure that the terms and conditions are agreed upon and check the title as well. As a seller, you also need to settle all outstanding payments, water charges, electricity bills, maintenance bills etc before the Sale Deed can be executed.
Parent DeedThe Mother or Parent deed is a critical legal document that traces the ownership of the property being sold with a record of all previous owners. This has an impact on its value and it also establishes the new ownership. In addition to proving change in ownership, the deed also details the type of sale (whether the property was a gift, an inheritance or a new purchase). In case the original Parent Deed is not available, you can get certified copies from registration. This way you can update the sequence and make the deed more relevant.
- The property does not have any outstanding contracts
- The property does not have any outstanding mortgage payments or boundary line issues
- The property does not have any outstanding bills from maintenance/improvements that were done within the past 90 days
- There are no law or regulation violation involving the property
- If the seller lies about any of the abovementioned issues, he/she can get sued by the buyer for damages.