Although selling a property is a rewarding endeavor, it can also be challenging during the process of selling. Making a sale involves not just finding a buyer for your property. It’s rather undergoing a series of legal, financial, and administrative steps. Regardless of your experience in real estate sales, this guide will serve as a checklist for selling property in India!
Understanding the Selling Process
Property Valuation
You must be wondering how to value your property. Whether it’s a residential or a commercial venture, you need to determine its market value. To do so, hire a professional appraiser to make an accurate assessment.
Choosing the Right Agent
Having a person to help you every step of the way is a blessing in disguise. Hire a real estate agent who you genuinely trust and rapport with. This would benefit you in negotiating and connecting with the right set of potential buyers. So that you get the right price for your property.
Preparing the Property
It might be a good idea to engage in property preparation. This means simply letting your property get a good first impression during buyer visits. You don’t need to be reminded of how first impressions matter if you remember your first date!
So, get to work! Clean, refurbish, and stage it to attract buyers who would bid a higher value for your property.
Building the Document Checklist for Selling Property in India
Now, let’s dive into the required documents that you’ll need to sell your property in India:
Property Ownership Documents
Understanding the Title Deed
The Title Deed is like your property’s birth certificate. It’s a legal document that proves your ownership. Make sure it’s clear, free of debt, and without disputes.
Encumbrance Certificate
Think of the Encumbrance Certificate as a clean chit for your property. It shows that the property isn’t mortgaged and has a clear title. Buyers want this to feel confident about the impending deal.
Property Identification Documents
Sale Agreement
The Sale Agreement outlines the terms and conditions of the sale. It’s like the screenplay of your property’s farewell saga. Ensure it’s comprehensive and includes all essential details.
Khata Certificate and Extract
The Khata Certificate is your property’s identity card in the municipal records. The Khata Extract provides a snapshot of your property’s history. These documents are vital for a legal transaction.
Property History
Property Tax Receipts
Ensure your property tax payments are up to date.
Past Sale Deeds
Proof of previous ownership transfers.
Approved Building Plans
Sanctioned plans for construction, if applicable.
Financial Documents
Property Tax Receipts
Property taxes are your property’s membership fees to the civic club. Ensure your Property Tax Receipts are updated. It assures the buyer that your dues are paid up.
NOC from the Housing Society
The No Objection Certificate (NOC) from your housing society is like getting a thumbs-up from your neighbors. It shows there are no objections to your property sale, making buyers breathe easier.
Government Approval Documents
Conversion Certificate
If your property changed from agricultural to non-agricultural, you’ll need a Conversion Certificate. It’s like your property’s passport from the countryside to the city.
Commencement Certificate
The Commencement Certificate is like the project’s green signal. It’s a confirmation that your property was constructed adhering to approved plans.
Occupancy and Possession Documents
Occupancy Certificate
The Occupancy Certificate is your property’s report card of completion. It states that the building is fit for habitation. Buyers want this to ensure they’re investing in a safe space.
Possession Letter
The possession letter officially transfers the property from the seller to the buyer.
Legal Clearance Documents
Legal Opinion
Getting a lawyer’s legal opinion becomes important if there are any ambiguities in the documentation, negotiation, and dealings. It assures buyers that the property doesn’t have any hidden legal issues brewing beneath the lid.
Non-Encumbrance Certificate
The Non-Encumbrance Certificate states that the property is free from legal and monetary liabilities.
Identification and Address Proof
PAN Card
Your PAN Card is your property’s financial identity. It’s needed for transactions exceeding a certain amount.
Aadhar Card
Your Aadhar Card serves as your property’s unique identification. It’s part of the KYC process for property transactions.
Power of Attorney
If you can’t be there in person, the Power of Attorney lets someone else sign on your behalf. It’s like having a trusted stand-in for the official proceedings. This also means you do not even need to be present in the same country while making the deal happen. By appointing a Power of Attorney, you transfer the rights to make real estate transactions on your behalf.
Bank Documents
Loan Clearance Letter
If your property has a loan, ensure you have a Loan Clearance Letter from the bank. It’s like the bank’s note stating, “All debts settled.”
Release Deed
The Release Deed releases your property from the clutches of the bank, confirming you’re the sole owner.
Sale Deed
The Sale Deed is the legal proof of transfer of ownership from you to the buyer.
Sale Agreement and Registration
The Buyer-Seller Agreement records the mutual agreement and understanding between you and the buyer including all the specific terms involved.
Drafting the Sale Agreement
The agreement should include the sale amount, payment terms, and property handover details.
Consult a legal expert to ensure all clauses are clear and enforceable.
Property Registration
Both parties need to be present at the sub-registrar office for registration. Pay the necessary registration fees and stamp duty.
Verification and Due Diligence
The Due Diligence process is like a mandatory assessment that one should make during all forms of translation. In real estate property buying, this process is when the buyer’s team examines all the documents produced by the seller, and the bank to ensure everything’s in order.
Seller’s Due Diligence
Check for outstanding dues, such as property taxes or maintenance fees. Verify the buyer’s background and financial capacity.
Buyer’s Due Diligence
- Scrutinize property documents for authenticity.
- Confirm the property’s compliance with local regulations.
Conclusion
Selling your property in India involves careful preparation and attention to detail. This checklist for selling property in India will equip you to navigate the complexities of property transactions. Remember, each case can be unique, so seeking professional guidance is always advisable. Propex can make this process simpler for you. Try us to comprehend our service in this regard!
