What are the actual steps in the sale of immovable property?
The following steps are involved in the sale of immovable property:
- Payment of the sale consideration amount
- Registration of the document of sale
- Handing over actual possession of the property to the purchaser.
Does the documents of sale of a property need to be registered?
Yes. Sale or transfer of property exceeding Rs. 100 should be compulsorily registered in the jurisdictional office of the Registrar of Sub Assurances.
Is there a Registration fee for this?
Yes. Registration fees for sale / transfer are as per the rules applicable in the State in India, where the Property is situated.
What other formalities are there in order to complete a sale deed or document of transfer?
The formalities and forms may vary from State to State depending on the location of the property.
- Every state has its own set of rules and regulations to be followed during the Registration of a sale deed.
- Permanent account number (PAN) issued by the Income Tax Department of India is now compulsory at the time of the transaction.
- For non-resident Indians Form 60 of the Income Tax Department has to be filed.
Checklist for selling both residential and commercial property?
The following is a good checklist to follow while selling either residential or commercial property:
- List out any documents or deeds related to the property. If clear copies are not available then you maybe able to acquire true copies of the same with the local Sub-registrar office. The potential buyer will require legible copies of the same.
- Ensure that the survey number, village and registration district of the property are correct as these details are required for registration of the sale.
- It is advisable that the potential buyer studies the market for the market trends about prevalent rates of property in the vicinity and last known transactions
- Before finalising the deal it is advisable to get a good understanding of the commercial terms of the transaction ie. Total consideration amount, payment schedule, transfer fees and other statutory charges like stamp duty.
- List property for sale with a reputed brokerage firm like Qube Real Estate advisory LLP
No objection certificates from the following authorities is advisable:
o Municipal Corporation.
o The competent authority under the Urban Land Ceiling and Regulation Act.
o Any other appropriate authorities.
- It is advisable to check with the buyer if he has already processed a loan application for the purchase of the property. If yes, check to see if he has obtained a pre-approval letter from the banking institution.
- Permanent Account Number of both buyer and seller are required under the Income Tax laws.
- After completion of all formalities of the sale ie. receiving the complete amount for the transaction the buyer shall provide legal possession of the property along with original documents of title to the property
The buyer will have to ensure the change of name of the holder of the property is notified to the following authorities:
o Housing society.
o Electricity Company.
o Municipal Corporation.
o All other utilities.