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Are you an owner of the property?

But having a fear of what to do of it after your death?

Can create a ‘Will’ and vest the property into someone’s safe hand after your death.

‘Will’ is a legal declaration disclosing the testator’s (person creating the will) intention of the transfer of the property into someone’s hand after his death.

A Will is an important document which enables the individual / any living person to rightfully leave his assets and wealth to whomever he chooses to, after his death.

REQUIREMENTS FOR A VALID WILL

To avoid a Will being challenged on the basis of its validity, it is important to ensure that all requirements for a valid Will have been satisfied which are as follows:

• must be in writing;
• must be signed by the person executing the Will(testator);
• must be signed in the presence of at least 2 witnesses and
• must be signed by the 2 witnesses in presence of testator.

GOVERNING RULES OF A WILL 

Laws relating to Will are governed by the provisions of the Indian Succession Act, 1925. However Muslims are not governed by the Indian Succession Act, 1925 and they can dispose their property according to Muslim Law.

ESSENTIAL CHARACTERISTICS OF A WILL

• Will is a legal declaration of testator‘s intention with respect to transfer of the property after his death.

• The declaration must be with respect to property of the testator.

• The declaration should be effective and operative only after the death of the testator.

• Will is not effective during the lifetime of testator and can be revoked at anytime during his life time.

WHO CAN EXECUTE A WILL

Section 59 of the Indian Succession Act, 1925 deals with persons capable of making wills. These are elaborated below:

• Every person who is of sound mind
• A person who is not a minor i.e., above of 18 years of age can make a will
• Any married woman can make a will of any property
• Persons who are deaf or dumb or blind can make a will provided they are able to know

            what they do by it.

•  A person who is ordinarily insane may make a Will document during an interval in which he is of sound mind.

IMPORTANT CLAUSES TO INCLUDE IN A WILL

Some of the points elaborated below must be covered for making an effective Will:

• Revocation

This clause is necessary at the time when the testator already has previous wills. A revocation clause will revoke the older wills and proofs that only this document is now the controlling force on the testator’s estate.

• Description of the property 

Details of the property on which the beneficiary is entitled to use and enjoy the said property after the testator’s death.

• Appointment of executor or personal representative 

One of the important clause in a will is mentioning a name of individual who would serve as the will’s executor or Personal Representative. He will be responsible of gathering the estate’s assets and distributing them to the beneficiaries.

• Guardianship of children 

In case a testator has minor children then this clause allows him to mention the name of guardian for his minor children in the event of the testator’s death.

This clause usually takes effect if the other spouse is deceased or incapacitated.

• Failure clause

In case where the beneficiaries and eligible heirs named in the Will dies before a testator death, then their estate will be given to the government.

Source url - http://entersliceindia.emyspot.com/blog/legal/will-meaning-and-when-is-it-required.html

Pharmacy business is one of the lucrative businesses which is not affected by the monetary cycles. Increasing developments in the private hospitals has also lead to the increasing demand for pharmacies which has ultimately lead a huge growth in healthcare and pharmacy industry in our country.

E-commerce companies and e-health companies are also increasing their market with easy availability of medicines to customers by providing same day delivery and cost saving. The pharmacies can be setup in hospitals, shopping areas, residential buildings, housing townships. Pharmacies in the residential building are in form of the firms.

No drug license? No pharmacy business!

But one thing which is most important for setting up the pharmacy business without which this business cannot be carried is to obtain a drug license. Drug license is a permission granted by the authority to sale, resale, market, manufacture, trade, etc of drugs. It is regulated by Drugs and Cosmetic Act, 1940.

Drug license is issued by State Drugs Standard Control Organization or Central Drug Standard Control Organization  

There are types of Drug License issued which depends upon the type of activities done.

Categories of activities:

• Hospital pharmacy – pharmacy set up in hospitals
• Standalone pharmacy– pharmacy set up in residential colonies and areas
• Chain pharmacy- pharmacy set up in malls as a part of chain
• Township pharmacy- pharmacy set up in towns

Types of Drug License 

• RETAIL DRUG LICENSE

This type of drug license is issued to persons/agencies involved in standalone/ chemist pharmacy shops         

• WHOLESALE DRUG LICENSE

This type of drug license is issued to persons/agencies involved in wholesale distribution of drugs

• RESTRICTED DRUG LICENSE

This type of drug license is issued to persons/agencies for operating the general stores.                                              

Requirement for Issue of Drug License

• Area of pharmacy

If you are setting up the pharmacy business, one thing to be kept in mind is about the area of the business which should be min 10 square meters. If you are applying for wholesale drug license the minimum area should be 15 square meters.

• Storage facility

Now, the medicines need to be stored in a clean and low temperature premises. They should be stored in cool place so refrigerator and air conditioner is required for its storage. Computer and proper labeling and storage facility for the drugs is also required.

• Technical staff requirement

Now the pharmacy business need to be handled by the experiences staff or must be qualified and possess good knowledge of the medicines. So before proceeding for the documentation part, these point to be considered.

Documentation for Obtaining Drug License

After fulfillment of all the requirements, you need to have some important documents. Though the issue of drug license issuance is an individual state matter therefore, documentation for obtaining it may vary from state to state but the generic list of items are as follows:

• Application Form
• Covering letter with the name & designation of the applicant
• Copy of challan obtained by depositing fees for obtaining drug license
• Declaration in prescribed manner
• Site plan for the premises       
• Basis of possession of premises
• In case of rented property, ownership proof of premises or rent agreement
• Document related to constitution of business such as Incorporation certificate/ MOA/ AOA/ Partnership Deed.
• Affidavit related to non-conviction of director/partner/ proprietor.
• Testimony of registered pharmacist or competent person and their appointment letter in case of an employed person.

Source url - http://entersliceindia.emyspot.com/blog/legal/setting-up-pharmacy-business.html

After implementation of GST, the government has also focused on setting norms for requirement of generation of E way bills for movement of goods from one place to another.

What is an E way Bill?

Electronic way bill is an electronically generated unique document. This document is for specific consignments of goods from one place to another. Such movement can either be inside state boundaries or inter-state in nature.

In earlier VAT regime, Way Bill a physical form was used for the same purpose. After introduction of GST registration procedure, with replacement of VAT and other taxes, Way Bill is also replaced by Electronic way Bill.

When anyone generates an E way bill a unique EBN (E-way Bill Number) is allotted. This EBN is mentioned in the E way bill which is available to supplier, recipient of goods along with the transporter.

When to Generate E way Bill?

Every time for movement of goods E way bill is required to be generated if the value of consignment exceeds Rs. 50,000/-. Such movement can be of any type, including supply in the form of sales (with or without consideration), transfer between branches, exchange etc.

However, there are certain cases when the requirement of E way bill is mandatory irrespective of the value of the consignment. Such cases include the following:

• In case of any transport of handicraft goods exempted under GST regime.
• For movement of goods by Principal to Job worker ad back by registered Job Worker.

E way bill is required to be generated before initiating the movement of goods in question.

Who Generates E- way Bill?

E way bill can be generated by following people in different circumstances:

• Person Registered under GST regime
• When such a consignment is either made by or to a GST registered person, then such registered person is required to generate E way Bill for the movement of goods.
• Person Not Registered under GST regime ax
• The liability to generate E way bill does not only lie with GST registration person. If any unregistered person is initiating the supply then they will be liable to generate E way bill. However, if such supply was made by an unregistered person to the registered person, then the recipient is expected to comply with e way bill generation requirement.
• Transporter of Goods
• If the supplier and the recipient of the goods do not generate the E way Bill, then in such a case the transporter is required to generate the E way Bill.

How to Generate E-way Portal?

Now that we have clarified as to what is an e way bill. Now, the question is how to generate an E-way Bill. An e-way bill can be generated either by visiting the official portal or it can be done through SMS on phone. This SMS facility was introduced later on for ease of doing business.

In order to generate an E-way Bill, the person is required to first create a login ID on the Official portal of E-way Bill.

For how long is E-way Bill valid?

Vide Notification No.12/2018 the authorities have replaced the rules relating to E way Bill. However, there have been no major changes; one of the main changes introduced is the validity of E-way Bill.  Current rules state the following:

• Any E-way Bill issued for any distance less than or equal to 100 K.M will be valid for one day. For every additional 100 K.M. of part there of the validity will increase by additional 24 hours.
• In case of Over dimensional cargo for distance upto 20 K.M. the validity is one day. And for every additional 20 K.M. or part there of the validity will extend by additional 24 hours.

Note: Here “Over Dimensional Cargo” shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988 (59 of 1988)

Source url - https://entersliceindia.livejournal.com/268.html

TATA Starbucks Private Limited, popularly known as the Starbucks, which started out in November 2012 now has 101 outlets in 7 cities in India. Did you know that this popular café is a 50:50 Joint Venture between TATA Global Beverage and Starbucks Corporation? Similarly, many insurance companies like Bajaj Allianz General Insurance, Future Generali India Insurance etc and others entities like Mahindra-Renault Limited are Joint Ventures in India.

Joint Venture company is a sought­-after form of corporate entity for conducting business in India. Though there are no separate laws for joint ventures in the country, there is always a requirement of a Joint Venture Agreement.

A well-drafted Joint Venture Agreement is capable of mitigating the risk attached to dispute in the future over expenses, control and profits among others. The Joint Venture Agreement can be beneficial in clearing up the possibility of disputes and protect the parties from any fall-outs later. The Joint Venture Agreements are known for distinguishing the joint venture from a partnership and describe the roles of responsibilities of the parties so that the transactions and the relationship run in a smooth manner providing the parties with nothing but profits.

 Source url - https://entersliceindia.it.gg/What-is-the-importance-of-a-joint-venture-agreement.htm

An ‘Investor’s Pitch Deck’ is formally prepared by Start-ups as a demonstration to present their ideas and scheme for business to the potential investors. The investor’s pitch deck is usually of 15-20 slides showcasing the company’s products, team, and technology in the most lucrative manner as possible.

Every Startup knows the importance of impressing the prospective investors and difficulties that arise in raising capital. Though time-consuming, yet it is a crucial step towards the growth of a start-up. Presenting a flawless Investor’s Pitch Deck and nailing the presentation is always the aspiration. Most of the time, it forms an interesting story to be told later or even published for more people to be inspired.

Preparing a strong, thorough, and engaging investor pitch deck, which is able to fetch the best investment offers requires dedication and passion. If required, one should seek proper guidance and refer to various links to sample pitch decks so as to secure an investment.  

What are the key slides to be included in your Investor Pitch Deck?

Including the following mentioned slides roughly covers all the important aspects of an Investor’s Pitch Deck:

• Company Overview which can include what problem it solves, what sector it aims, where it will be located, the experience of the management team, and establishments already made.
• Mission/Vision of the Company includes where the company aims to be after 5 years, 10 years.
• The Team slide giving details of the key team members, their titles and a short summary of their prior employment or experience. Details of the Advisors, consultants, and Board members improve the credibility.
• The Problem that brings the need of the startup and The Solution which shall be offered by the startup.
• The Market Opportunity slide depicting the markets that the startup is proposing to address include the trends in the same market through graphs.
• The Product slide indicating the products and/or service and why will they be unique. It should answer the question regarding the key features of the product, why will the users care about the product and what milestones it aims to attain. It can also mention the additional products that are planned for the future. 
• The Customers slide adds credibility to the pitch and showcases the pro-active outlook of the startup. The customers since form the most important part of a business, make the pitch more powerful.
• The Technology slide deck can address the basic technology backbone, key intellectual property rights the company has (patents, patents pending, copyrights, trademarks, domain names) and why shall it be superior to the technology that already exists in the market. It can also mention why it will be difficult for a competitor to replicate the technology.
• The Competition slide is what investors are most interested in. It should clearly mention:
• Who are and who shall be the company’s competitors?
• What gives your startup an edge over the others?
• What will be the differentiating factors?

Investors appreciate a deep understanding of the competitive landscape which implies the understanding of the market.

• Traction slide that shall mention the following: 
• What early traction has the company obtained (all progress in respect of the sales, traffic to the company’s website, app downloads, growth metrics, etc.)?
• What strategic partnerships have been consummated?
• Press, accolades, and testimonials.
• The Marketing Plan slide shall cover
• Key marketing channels - paid search, social media, TV, radio, email marketing, etc.
• Early successes
• Preliminary customer acquisition costs per customer and the projected lifetime value of a customer.
• PR plans
• Early press or buzz received.
• Financials slide depicting the company’s current financial situation and proposed future financials.
• Any other slide that may be relevant to the particular business model, product, service or any specific detail or idea of the startup

Source url - http://enterslice.over-blog.com/2018/07/how-to-create-an-unforgettable-pitch-deck-for-your-start-up-idea.html

A Shareholders’Agreement is a legal document that describes an arrangement among the shareholder’s of the company. It outlines the understanding regarding how the company would be operated and managed, administration of company, the shareholder's relationship, ownership of shares, privileges and protection of shareholders, initial funding etc.

A Shareholders’ Agreement is useful in defining the right and powers a shareholder obtains.

What are the advantages of having a Shareholders Agreement?

• It can be used to protect the position of minority shareholders.
• It allows the regulation of the appointment and removal of directors by giving certain powers to the shareholders.
• It allows regulation of raising capital.
• It provides an appropriate resolution of disputes when such arises, which can be through mediation or arbitration 
• It lays down terms of regulating the business and its management.
• It provides guidelines on installments, profits, and other advantages provided to the directors.
• An agreement characterizing the roles, responsibilities, and function of every investor will be helpful in preventing a future dispute.

How should a Shareholders’ Agreement be drafted?

• An efficient legal professional should be contacted with the requirements.
• Once the terms and objectives as per the requirement of the company and shareholder’s are clear, a draft agreement should be made.
• Once approved by the key management personnel, the Shareholders’ Agreement is finalized.

What details and terms are included in aShareholders’ Agreement?

The Shareholders Agreement is required to be carefully drafted including some vital points which shall be helpful in the long-term functioning of the company. Any carelessness in the drafting the agreement possible can render the understanding inadequate and ineffective.

Key terms included in it apart from the complete details of the parties are:

Term of purchase for investment

Terms of transfers of shares including

Transfers to the Company

Transfer to Others

The Company's Right to Purchase

The Continuing Shareholders Right to Purchase

Performance of Acceptance

Sale to Third Party

Right of Co-Sale

Term of sale or redemption upon termination of employment, disability or death

The purchase price for all Shares purchased and its payment

Rights upon registration

Closing pursuant to the exercise of a right to purchase or sell Shares

Entry of legend upon stock certificates

Conditions of after acquired shares - subsequent shareholders

Board of directors

Terms relating to community and marital property laws

Terms of pro rata allocations

Terms of authorization

Termination of the agreement

Dispute Resolution

Binding effect

Governing law

Thus, the Shareholders’ Agreement lays out a controlled structure for all investors to ensure them that their rights are secured. It defines clearly their commitments and obligations. Directions on how an individual can join the organization as another investor are also laid down.

Investments of every sort require negotiations and meeting of minds over the terms and conditions. It is here that ‘Term Sheet’ finds importance. Term Sheet is a non-binding document that outlines the terms and conditions with respect to the investment which is mutually agreed to by the parties.

Though a term sheet does not have a legal value and cannot be enforced, yet drafting it in a detailed manner ensures that the parties are on the same page and no misunderstanding shall crop in the future. A term-sheet shall then be a reference document for the drafting of a legally binding agreement or contract.

What are the features and benefits of Term Sheet?

• A term sheet lays the bedrock for ensuring that the parties involved in a business transaction agree on major aspects of the transaction.
• It gives the parties ample time for better negotiations & finishing up every facet of the terms of the transaction.
• It enables the parties to avoid the possibility of a misunderstanding between the parties at a later stage and the parties remain clear about major aspects of the deal.
• It lessens the likelihood of unnecessary disputes.
• A term sheet also ensures that the expenses of legal charges involved in the drafting of binding agreements or contract are not incurred from the initial stage.
• This encourages the parties to focus on the business issues in the transaction at the early stage.
• Investing time and resources in drawing a Term Sheet is always beneficial in the long run for the company.

What constitutes the Term Sheet?

• A term sheet shall mention the details of the investor and the entity in which the investment is being made,
• It shall be clear upon the mode of investment the time period if decided upon.
• Securities,
• Liquidation preference,
• Conversion,
• Voting Right,
• Protective provisions,
• Pre-emptive rights (to maintain proportionate ownership),
• Co-Sale Rights,
• Election of directors,
• Share purchase agreement, if to be drafted between parties,
• Option pool,
• Sale Transaction,
• Anti-dilution Provisions,
• Redemption Right,
• Representations and Warranties,
• Conditions to Closing,
• Management and Information Rights,
• Right to Participate Pro Rata in Future Rounds,
• Matters Requiring Investor Director Approval,
• Non-Competition and Non-Solicitation Agreements: Non-Disclosure,
• Employee Stock Options,
• Provisions of right of first refusal/co-sale etc.

These are some terms that may be mentioned in the investment term sheet but all should be as per individual transaction, the nature of the transaction as well as particular requirements of the parties.

What note of the Term Sheet must be taken by the parties involved?

Since a Term Sheet lays groundwork for the future formation of legally binding agreements, all the settled terms, clauses and provisions must be analyzed, discussed and negotiated thoroughly with all the aspects including that of future impact kept in mind.

It is advised that during negotiations and drawing up of the Term Sheet, a team of professionals must be consulted. It not only provides an experienced outlook to the transaction but also a fresh and unbiased approach which enables an unambiguous and exhaustive document to be made.   

A Vendor Agreement is an agreement which is made by the business owner, or any other individual to hire products and/or services from other party. It covers various areas such as office supplies, professional services, technology services, marketing etc. It is a very important agreement as it defines the description of the product or services. To minimize the risk of conflict, expectations are clearly defined under Vendor agreement.

Few things must be considered while drafting vendor agreement.  

There must be a detailed description of products or services.

Work statement should also be attached with the vendor agreement.

There must be a clause consisting payment terms of the product or services.

There must be penalty provisions in case of late payment.

Termination terms of the agreement must be clearly defined.

There must be a clause consisting intellectual property like who owns the IP, license granted to the other party.

It should also specify the representation and warranties.

Confidentiality: There must be terms regarding disclosure of confidential information and for this parties can also execute non disclosure agreement.

Indemnification term: Under this, vendor agrees to indemnify for a breach of warranty, willful/ negligent act, and omissions in case of infringement of a third party’s intellectual property rights.

Limitation of liability clause is very important as it excludes the incidental or consequential damages from the liability of the party.

A vendor’s agreement must define the relationship among both the parties.

Source url - https://entersliceindia.it.gg/Why-vendor-agreement-must-be-executed.htm

Nobody can deny that the wave of startups has been increasing the demand of professions like Chartered Accountants, Lawyers, Company secretary and any other financial consultant expert in their field or work. But the startups which are cash-strapped cannot afford the full time services of the consultant who has the expertise as well the experience as per the requirements. Thus come in picture the consulting agreements. It is drafted between the consultant and a company outlining the scope terms and conditions of working together. 

An expert is brought as an external consultant for his professional services for a specific nature of work and not as a full-time employer. A consultant’s services are governed by the consulting agreement which lays down the terms of scope of work to be performed, a specific term period, if mutually agreed upon, payment terms, confidentiality clauses, and the termination clause with a notice period mentioned therein

Consulting agreements benefit both the consultants and the company since it covers all the aspects of the work to be performed in specific timelines and the payment methods. The consulting agreement being a legally enforceable document may also mention a clause of dispute resolution.

It is preferred that a startup must keep a draft of consulting agreement as per their requirements at hand to be able to use it whenever it requires and negotiate with the draft as the base. 

Source url - https://entersliceindia.it.gg/What-is-consulting-agreement.htm

A non disclosure agreement is a contract executed between parties with binding terms restricting either both or any one party from sharing any confidential information with any third party.

Purpose:

Non disclosure agreement is an effective way to protect the trade secrets, intellectual property, software etc. to maintain the competitive advantage of the organization.

Types of Non Disclosure Agreement

Based on the nature of the agreement, it can either be classified as bilateral or unilateral.

Bilateral Non Disclosure Agreement – Both the parties mentioned in the agreement have to comply with non disclosure requirement.

Unilateral  Non Disclosure Agreement – Only one of the parties to the contract is obligated to comply with non disclosure requirement.

Along with the above mentioned categories, Non Disclosure Agreement can be classified on the basis of its applicability. For Example:

Inventor Confidentiality Agreement

Employee Non-disclosure Agreement

Interview non-disclosure agreement

Customer Confidentiality Agreement

Standard non-disclosure agreement

Components of a Non Disclosure Agreement

• Mention details of involved Parties
• Nature of relationship between the parties to the contract.
• Define the nature of information shared between the parties and what part of it constitutes as confidential.
• Receiver’s obligations and the extent of liability in reference to that confidentiality information.
• Term or duration of such contract.
• Clauses relating to injunction, arbitration and jurisdiction in case of any dispute etc.
• Name and description of parties
• Date and place of signing

Source url - https://entersliceindia.it.gg/What-is-a-Confidentiality-Agreement-and-its-Types.htm

As per the Transfer of property act, 1882 a Gift is defined as ‘the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor and accepted by or on behalf of the donee.’

These provisions of Gift provided under this act are not applicable to Muslims.  

The definition includes:

• A Transfer which is defined as conveying of property;
• Voluntary transfer by the donor:
• The decision should not reasonably appear to have been taken due to any coercion or fraud.
• A Donor can be any person who owns the property, except a minor. A gift deed by a minor is void.
• For a gift deed to be valid, the soundness of mind of the donor is also essential. The donor must not be insane. A mere weakness of mind is not sufficient to declare the gift deed to be void.
• Property;
• The subject matter of the gift shall be an existing movable or immovable property not being provided as an exception as per Section 6 of the Transfer of Property Act, 1882.
• A gift comprising of future property is void. A gift with both existing and future property is void to the extent of future property.
• Without any consideration to the donor
• Out of natural love and affection,
• Without any monetary element involved in the transaction.
• Acceptance by donee, made during the lifetime of the donor.
• If the donee dies before accepting the gift, then it becomes void. Thus, ideally, the acceptance given must be recorded at the time of execution of the deed and registration.
• Also, a gift is made to more than 1 donee, and is not accepted by all, then the gift shall be void up to the share/ interest of only those who did not provide the acceptance.
• A minor can be a donee and a natural guardian can accept the gift on his behalf.

What are essentials of a gift deed?

• A gift deed should clearly mention the name and details of the Donor and the Donee.
• State the details of the title and ownership of the Donor.
• Relation between parties, if any
• Details of the property which is the subject matter of the Gift-deed
• Gift deed to be signed by
• the Donor consenting the transfer of subject matter through Gift-deed,
• the Donee accepting the gift, and
• two adult witnesses
• Date and place of execution shall also be mentioned.

How to proceed with registration of gift deed?

As per the Section 123 Transfer of Property Act 1882 and Section 17 the Registration Act, 1908, for a gift deed to be effective, there should mandatorily be a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses.

• Mere delivery of the subject matter shall not validate the transfer or the gift.
• Once the Gift deed is duly registered, the transfer of title shall then be made.
• Stamp duty has to be paid for the registration which varies from state to state.
• Stamp duty to be paid is according to the market value of the subject matter, gender of the donor etc (available on the state websites)
• Stamp duty can be paid through a non-judicial stamp paper.

Can gifts be revoked or suspended?

• As per the provisions of the Transfer of Property Act, gifts are possible to be suspended or revoked if the Donor and the Donee have agreed upon it in event of happening of a specified event which does not depend on the will of the Donor.
• This is not applicable when the suspension or revocation of the gift, wholly or in part, is dependent upon mere will of the Donor, and such shall be void, wholly or partly, to the same extent.
• A gift may also be revoked in cases where it would be rescinded if it were a contract.

Source url - https://entersliceindia.wixsite.com/mysite/blog/gift-deed-definition-and-process

Are you purchasing home or some property?

The essential document for purchasing the immovable property is execution of sale deed.  So, here in this article we are going to through some light on the aspects related to execution of sale deed

What is a Sale Deed?

The sale deed is the legal document executed subsequent to the execution and compliance of terms and conditions of the sale agreement between the buyer and the seller.

It acts as an evidence for sale in favor of the buyer and transfer of the property from buyer to seller

After the ownership gets transferred to buyer, he can further sale the property

POINTS PURCHASER SHOULD ENSURE BEFORE PURCHASE OF PROPERTY

• The purchaser should check the title of the seller before the execution of the sale deed
• The purchaser should verify the encumbrance status on the property
• Statutory payments like cess, property tax, water charges, electricity charges, society etc must have been paid by the seller before the execution of the sale deed.
• Requisite clearances, approvals and permissions must have been obtained by seller before transferring and selling the property.

HOW THE SALE DEED IS PREPARED?

There are basic steps involved in preparation of sale deed:

• The deed is executed by all the parties concerned
• All pages of the deed are to be signed
• The deed should be witnessed by at least two witnesses giving their full names, signatures and addresses

The sale deed of immovable property needs compulsory registration at the jurisdictional sub registrar office. Registration of sale deed is governed under Registration Act, 1908

CLAUSES OF SALE DEED

Sale Deed is the documents that are created based on the needs of buyer and seller. Below are the key points elaborated as how to draft the document for transfer of the ownership of a property in buyer’s name.

• Description of the parties:

Sale deed must start with the details of the parties which includes full name, addresses, age and occupation if possible

• Date and place:

The date and place of execution of sale deed by seller and buyer should be mentioned in the deed

• Description of the property:

The important aspect of the sale deed is the details about the property being sold like the address of property, construction details including roofing, number of rooms, parking facilities, boundary details, etc along with a schedule of the property which defines exact location of the property.

• Sale consideration:

The consideration amount agreed between the buyer and seller in purchasing the property must be specified in the sale deed.

• Passing of the title to property:

Execution of sale is necessary for transferring the title to the property to buyer. Therefore, the date upto which the property’s ownership will be transferred should be provided in the deed.

• Indemnity clause:

Being a buyer make sure that there is a indemnity clause in the sale deed through which the seller will be only responsible for any hindrances in the title to the property. So, the person buying the property should ensure that all the taxes in respect of property and encumbrance status should be checked before purchasing.

• Execution: 

After incorporating all the relevant points related to sale deed, the next step is to sign all the pages by buyer and seller

• Delivery of property:

In order to avoid the confusion in future, the detail regarding the property related documents and how the possession will be handed over to the buyer must be summarized

• Witness: 

A valid sale deed should be attested by two witnesses each of seller’s and of buyer’s.

 Source url - http://entersliceindia.emyspot.com/blog/sale-deed-a-title-to-property.html