Steps involved in selling a property?
- Pricing real estate property is always been a vital step. A suitable price will depend on a lot of factors. However, an easy way to determine the price would be to take into consideration the average sale price at which similar properties were sold in the last 3-6 months in the neighborhood. A seller can either self-assess his property or resort to an external source such as a real estate agent, to determine the proper market value of the property.
- Choosing an agent will ease the selling process, as the agent will be in charge of advertising, showing, and completing the paperwork and legal requirements of selling the property.
- Getting an agreement signed with your agent. The contract will detail any commissions, the duration of the agreement, the advertising costs process, and the estimated sale price.
- Listing a property in a prescribed format, basic details related to the property such as the type of the property, exact address, the selling price, or tentative rent. The seller can advertise his property on various mediums such as the internet, pamphlets, classifieds, or through a broker. Once the buyer is identified, it is advised to do a background check on the buyer with special reference to his financial capability and reliability.
- Sellers must obtain required No Objection certificates from various authorities (Society, Income Tax Authority, Municipal Corporation, etc).
- Preparing Vendor’s Statement for the property and the Contract of sale through your lawyer or attorney. This will include all of the details required for the purchaser.
- Under the contract, both seller and buyer’s lawyers and banks will work out the details of the sale to ensure both parties meet all legal and financial requirements followed by the settlement day.
- Not all states require sellers to hire an attorney to the closing. Still hiring one could cost a couple of thousand rupees, but the expense might be worth it to protect such a large financial transaction. An attorney can help with paperwork, review contracts and documents, identify potential issues, and ensure the sale goes in a proper way.
Required documents for selling a property
Documentation is the most vital stage, as there have been a majority of property-related disputes regarding insufficient and improper documentation. Therefore it is crucial that both the buyer and the seller give their due consideration to the documentation of the deal.
Here are the list of documents required while selling the property-
Letter of allotment
This letter confers allotment of the property to you from the relevant society or authority is a primary document you need to have in order.
The original sale deed from the previous owners of the property is required while selling a property. The sale deed is important as it traces the ownership of the property and it is necessary to prove the chain of previous agreements with past owners.
A copy of the approved building plan and occupation certificate issued by the competent authority will be required where the document has been lodged for registration.
The buyer is entitled to ask for the original stamped receipts of payments made to the builder or developer by the previous and present sellers. While selling a property the seller is required to obtain permission to transfer the property from a competent authority, development authority or society.
The encumbrance certificate is required in property transactions to indicate the free title. The buyer wants to make sure that the land or property does not have any legal dues while buying an apartment, land, or house.
Both parties can enter into an agreement to sell and confirm the terms and conditions once the documentation process is done. Thereafter they can execute the sale deed based on the agreement to sell. The sale agreement is signed and executed by the seller and buyer on non-judicial stamp paper. It is one of the most powerful documents in the transaction as it has legal value and can be produced as evidence.
It is important to consider that there are several expenses while selling the property. The costs of selling a property typically include repairs and improvements, staging, utilities, real estate commission, pre-inspections, cleaning, home warranty, capital gains tax, closing costs, remaining mortgage balance, and moving.