Tips for selling your property

Buying and selling a property always carries its share of worries and in the present scenario these worries have further multiplied. Gone are the days when property deals happened just with a nod of the buyer and the seller. We are now living in a sophisticated world with rigid ramifications set to deal with property transaction.

You can sell your property yourself to a buyer or use an estate agent. You can also enlist your property in any of the real-estate specific web portals. A real-estate broker can be a convenient option as you don’t have to waste time by running around to manage the various aspects of selling like advertising, meeting clients and showing the property to potential customers.

By selling your property, you have handed over the ownership rights of land or structure you own, to the purchaser for a definite sum of money and the property will be labeled as freehold property. In a freehold property the ownership of the property is for an indefinite period of time and the owners possess the right to the sell the purchased property. The Record of ownership of the freehold property can be determined in the office of the Sub-Registrar. This can be transferred by registration after the sale deed.

The Sale deed registration process in India varies from state to state. Some of the provisions mentioned in the sale deed registration are:

1. Transfer Title of Property
2. Terms for Payment
3. Payments
4. Stamp Duty
5. Registration
6. Arbitration

The foremost essential thing to do is to check that there exists a Land Contract. A Land Contract is basically an agreement between the buyer and the private seller of a property. The agreement mentions that the seller will hold the property until all payments are proffered by the buyer to whatever was agreed upon previously. The payments can be both in the form of monthly payments or payments at one go. Whatever is applicable has to be agreed by both the parties in a written statement.

In case the seller still owes a mortgage on the property the buyer will assume that the seller will make the payment as well as taxes if any. This has to be mentioned beforehand and again in a written agreement, that any pre-existing liability pertaining to the property has to be executed by the seller before the sale has actually taken place. The buyer must always be careful about this clause or else it can lead him to legal trouble.

It is the duty of the buyer to make sure that he procures the original documents of the property and has to get an Encumbrance Certificate of the property for a minimum period of 15 years from the Sub Registry Office to know if there exists an encumbrance on the property that is on sale. Encumbrance Certificate is a record showing registered transactions pertaining to a property. The application fee of an Encumbrance Certificate is rupees five.

Some key factors to remember while selling a property

1. Agreeing to the terms and conditions of the deed.
2. Obtaining permission or a No objection Certificate of the society if it is absolutely necessary.
3. Consent from the income tax authority, The Urban Land Ceiling Authority and the Municipality whichever is applicable.
4. Registering the transaction.
5. Issuing a deadline so that all the terms get done within a restricted term frame.

Source : commonfloor.com