Selling a home can be a daunting task. To ensure a smooth transaction and maximise your profit, it is essential to keep a check list of dos and don’ts.
Diana Mathias, Partner at Cignas (a business advisory firm), explains points to keep in mind when selling your home.
Establish a clear and verifiable chain of ownership for the property: It is essential to have all the documents handy. This includes Original certificate of completion (OC)/ Completion Certificate (CC) of the property, past sale agreements, past gift deeds if any, documentary evidence of payment of stamp duty on the property, property tax receipts, encumbrance certificates, jurisdictional evidence of registering the property.
If the property is inherited and transfer is not recorded by society, the seller should seek appropriate legal advice to ensure the transfer is recorded by society. The buyer may also insist on a newspaper advertisement regarding any claims on the property.
In case of multiple sellers, obtain the consent of the respective sellers.
Review your broker engagement: The scope of work including assistance if any required at the stamp registrar office etc. and all terms and fees payable by the seller on successful closure of deal needs to be upfront decided.
Finalise commercial terms with the Buyer:
Terms of payment
Time of possession
Any house equipment that will be handed over on possession
Terms of Sale Deed including payment milestones and forfeiture of earnest money in case of buyer not completing his/her obligation.
Payment of stamp duty and registration cost on the property
Payment of transfer fees to society– whether shared or payment by buyer/seller
To agree on a cut-off of utility charges payment (i.e. electricity, gas, etc.)
Procure no objection certificate from the society: The Buyer will require this certificate to ensure all dues including towards maintenance or any society dues have been paid.
Intimate all concerned authorities: Post sale, intimate concerned authorities for change in ownership and change in address wherever the property address is quoted for communication.
For a resident seller, the buyer shall deduct withholding tax at 1 per cent on sale consideration if the sale consideration is above 50 lakh. The Finance Bill 2024 has modified the same that it will be determined at property level and not respective owners share.
In case the buyer is an NRI/OCI, the payment can be made from funds received in India through banking channels by way of inward remittance or by way of debit to balances held in NRE/NRO account.
First Published: Aug 13 2024 | 4:50 PM IST
