Selling a home can be a daunting task. To ensure a smooth transaction and maximize your profits, it’s essential to have a list of do’s and don’ts.
Diana Mathias, partner at Cignas (business consulting firm), explains the points to bear in mind when selling your home.
Establish a clear and verifiable chain of ownership for the property: It is essential to have all documents at hand. This includes the original Certificate of Completion (OC)/Certificate of Completion (CC) of the property, previous sales contracts, previous gift deeds if any, documentary evidence of payment of stamp duty on the property, property tax receipts, lien certificates, jurisdictional evidence from the land registry.
If the property is inherited and the company does not register the transfer, the seller should seek appropriate legal advice to ensure that the company registers the transfer. The buyer may also insist that a newspaper advertisement be published regarding any claim to the property.
In case of multiple sellers, obtain consent from the respective sellers.
Review your engagement with the broker: the scope of work, including assistance, if required, at the stamp registration office, etc., and all terms and fees to be paid by the seller upon successful closing of the deal, should be decided in advance.
Finalize commercial terms with the Buyer:
Terms of payment
Time of possession
Any home team to be delivered into possession
Terms of the deed of sale, including payment terms and loss of the security deposit if the buyer fails to perform his or her obligation.
Payment of stamp duty and property registration fees
Payment of transfer fees to the company, whether shared or paid by the buyer/seller
To agree to a cut in the payment of utilities (i.e. electricity, gas, etc.)
Obtain a no objection certificate from the company: The buyer will require this certificate to ensure that all dues, including maintenance or company dues, have been paid.
Inform all concerned authorities: After the sale, inform the concerned authorities of the change of ownership and change of address wherever the property address is cited for communication.
In case of a resident seller, the buyer will have to deduct a withholding tax of 1% on the sale price if it exceeds `50 lakh. The Finance Bill, 2024 has amended the same so that it will be determined at the property level and not according to the share of the respective owners.
In case the buyer is an NRI/OCI, payment can be made from funds received in India through banking channels by way of inward remittances or by debiting balances held in NRE/NRO accounts.
First published: August 13, 2024 | 16:50 IS
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