Deed of Transfer, Great care should be taken in describing the property, as slight omission or mistake may cause loss to party. Description should be carefully so that conflict between parties may be avoide.
The description such as Map, tree, well, road, agricultural land or non agricultural, house, area of land etc.
Division of deeds into the following parts are as follows:-
Description of the Deed of Transfer
The deeds should be describe by the name of the transaction which they evidence for eg. THIS DEED OF SALE, THIS DEED OF MORTGAGE ETC, This deed is written in capital letter.
Date in Deed of Transfer
The execution date may be stated like this, THIS DEED made on the first day of January two thousand or 1st January 2000.
The date is written after the description of Deed, it is always matter of great important to know the date from which particular deed operates. The date is also important for the law of Limitation.
Parties of the Deed
After the date the name and description of the parties to the Deed are mentioned. As to who are the necessary and proper parties to a deed, depend on the circumstances of each case.
There are parties as of circumstances such as:-
- Transferee
- Third Person
- Juridical person
- Idol
- person under legal disability
- minors
- mentally ill person
- insolvent
- trustees
- hindu coparcenary
- attorney
- firm
- government
Testatum (witnessing)
Testatum is witnessing clause, the witnessing clause usually begins with the words “Now this deed witnesses”.
Consideration Deed of Transfer
Section 2(d) of indian contract act define consideration. As lawful consideration is essential element of contract s/10 contract act.
“When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise”.
Receipt of consideration
Acknowledgment of receipt of consideration may be embodies in deed so that no any separate receipt passing.
Habendum Deed of Transfer
This is the familiar “to have and to hold” (in Latin, habendum et tenendum) clause of the English precedents.
In India such phrases as “to have and hold” or such an expression as “to the use of the purchaser” are not strictly necessary but there is no harm in continuing the established practice.
Testimonium
The last part of Deed is the Testimonium which set forth the fact of the parties having signed the Deed.
Signatures of executants
The signature of the executants and those of attesting witnesses. If the executants is not competent to contract, the Deed must be signed by person competent to contract.
EXAMPLE:- A juristic person, a firm, a corporation, co operative society, company, trustee, attorney, government etc.
Stamp duty and Registration
Under section 35 of the stamp act, instrument not duly stamped is inadmissible in evidence.
Section 17 of Registration act deed is required to be compulsorily registered.