January 1, 2020
How do I sell my property/real estate in India while I’m in New York/New Jersey/ USA?
In India, the real estate market is often looked with a suspicious eye. And why not, we often come across many news citing developers and brokers’ fraudulent activities. It, therefore, becomes very important for any buyer to know what and how to buy, legally. What are the legal aspects that a buyer should consider; how he can safeguard his investment.
An owner of a property in India has three basic rights over that property, which makes him the “absolute owner.”
- The right of ownership or title to the property.
- The exclusive right to possess and enjoy the benefits of that property in any lawful manner.
- The right to alienate that property. In other words, an owner can part with the property as and when he wishes, and in the manner, he prefers to do so provided it is within the legal framework.
Legal procedures and market conditions have however, made it increasingly onerous for property owners to sell their property. For the benefit of such owners, hereinafter follows the basic procedure to sell a property legally in India.
- Proper valuation: a seller can either self-assess his property or resort to an external source such as a real estate agent/registered valuer, to determine the market value of the property in question.
- Self-selling versus hiring an agent: the seller has the option to either sell the property by himself, or to hire a real estate agent. Self-sellers may lack the knowledge of the market and also of the legal procedures involved in selling a property. Hiring a professional agent for a small commission is therefore advisable.
- Advertising: the seller can advertise his property on various mediums such as internet, classifieds, pamphlets, word-of-mouth or through a broker. Once the buyer has been identified, it is advisable to do a background check on the buyer with special reference to his financial capability and reliability.
- Obtaining permissions: the seller must obtain no objection certificates (Noc’s) from various authorities as required. These authorities maybe;
- Income tax authority
- Municipal corporation
- The competent authority under the urban land ceiling and regulation act
- Any other authority.
- Thereafter our role as an advocate/attorney comes in the process.
- The most vital stage of documentation: –
Of late, there has been an increase in the number of property related disputes that are a direct outcome of insufficient or improper documentation.
It is therefore pertinent that both the buyer and the seller give due consideration to the documentation of the deal.
The following documents are necessary to fight a property related dispute in India:
- Letter of allotment:
- It confers the allotment of the property from the relevant authority or society, to the original buyer.
- Previous sale deeds:
- The seller should have the original sale deed from the previous owner(s) of the property. It makes it possible to trace the ownership of the property. A property with clear documentation and title is likely to command a higher price in the market.
- Sanctioned plan:
- The approved building plan and occupation certificate issued by the competent authority. For example; in Bombay that would either be the BMC or MCGM depending on the area of jurisdiction.
- Encumbrance certificate:
- This is an evidence of free title. A property free of encumbrances commands a higher price in the market.
- Sale deed or agreement: once the aforesaid documentation has been completed, the seller executes a sale deed in favor of the buyer on the basis of agreement to sell entailing all terms and conditions duly listed on a non-judicial stamp paper. After complete clearance of documents, both parties sign the sale deed & register the same.
Our expert team of advocates in India can help you with each and every procedure as mentioned above as our team consists of advocates, registered valuers, recognized brokers, chartered accountants & registration personnel.