How do I sell my property in India if I’m an NRI?

 Here is the step by step procedure to sell a property in India,

Step 1: (Property valuation) It's very important to valuate a property to decide the right selling price. Valuating the property saves you from a lifetime regret of having the property sold at a lesser rate.

To valuate a property, understand the market value of your property, also known as guidance value/ government value/ circle rate, which is decided by revenue department of the area where property is located. One can get the market value from the information centre of revenue office.

For example: In Bangalore, the market rate information available in the respective sub-registrar office and Kaveri Online services.

Based on the market value and other following parameters of your property, Decide your selling price.

• Market value
• Location (Ex. Close to metro, market, school, etc..)
• Demand
• Size of the property
• Additional fittings (Ex: modular kitchen, wardrobes, special flooring, number of washrooms, terrace garden, etc.)

Generally, a selling price covers, cost + interest + appreciation + tax + margin.

Hire a professional who could help with the valuation of your property.

Step 2: Appoint a local source for miscellaneous tasks Preferably your relative, colleague, friend, estate manager, estate security, or trusted local broker in India. Your local source assists in showing property to clients and coordinates documentation work. on your behalf.

Step 3: Marketing, have someone take quality snaps of your property by using mobile phone and list the property details on property websites.

It's important to list the property online because online listing provides quality leads. When you list the property online, provide all the necessary details of your property, especially add proportionate value of your property to stand unique (Ex: modular kitchen, wall to wall wardrobes, good sunlight and air circulation in the property) such kind of in-depth listing stand out of crowd.

Below are the few reputed property website in India,

• 99acres
• CommonFloor
• Housing
• Magicbricks
• Makaan
• Sulekha
• nobroker

The above websites offer free registration and one free listing. Preferably list your property on all the possible websites, more the listing more the lead coverage.

While registering on the above websites, your Indian contact number and email ID require, if you don’t have an Indian contact number, ignore providing the contact number and share only email id as your mode of communication.

Parallelly inform your local source to work on offline lead generation.

Step 4: Leads & Screening, You will start receiving calls and emails of leads. It's very important to screen the leads before arranging for property visits, the screening process saves immense time, energy, and effort of your local source to show property to productive leads and ignore unproductive leads.

Below are the few important screening questionaries

• What is your budget?
• How long have you been looking for a property?
• Self-financing or bank loan?
• Are you looking for your own or somebody else?
• Do you have any deadline to complete the sale process?
• Do you have any specific requirements? (Ex: main door facing, pool facing, Vastu preference)
• Do you require any more information about my property before we have a property tour?

Based on the response, you should able to spot time waster and genuine buyer. Upon a satisfactory response, invite buyer for property tour.

Step 5: Property Tour, A cleaned house recommends itself. Ensure that no speck of dust marks. Cleaned windows, scrubbed floors, ensure that the mirrors are cleaned and faucets untarnished.

Keep the doors and windows open for ample sunlight and natural air circulation in the house. Ensure drawers and doors close property without creaking sound. Ensure that all light bulbs switch on and that there are no leaky taps. Consider painting your walls in neutral colors.

Step 6: Found the buyer and feasibility discussion, once we found a buyer, it's important to mention to buyer that you are an NRI. Mutually discuss the feasibility of following points

• Taxation (TDS)
• Financial Transaction
• Power of Attorney

As an NRI, it important to understand, how much is the TDS applicable for the deal.

It's important to have NRO account for financial transfer

If you are not physically available in India to sign sale deed, it's important to issue POA to blood relative in India to register a sale deed on your behalf.

Step 7: Token advance, Once buyer accepts the feasibility check, buyer may demand property documents for verification.

We should demand at least Rs. 50K token advance before we share property documents. The token advance is part of selling price.

(The main intention of demanding token advance is for another layer of screening to understand the interest of buyer and they should not misuse property document. Only genuine buyer steps forward to pay and collect the document)

Step 8: (Property documents) email softcopy of property documents to buyer and never hand over original documents until sale deed complete.

At this point, original documents are meant to be cross verified in front of local source, advocate, or bank.

Following are the few important property documents to share with buyer:

• Mother deed (Applicable if you purchased resale property)
• Sale deed
• Encumbrance certificate (EC)
• Tax paid receipt
• Occupation certificate (OC)
• Khata certificate & extract
• PAN (and aadhar if available)

Step 9: (Verification): Buyer verifies the documents from his advocate and checks the loan feasibility from bank.

Step 10: (Transaction): Discuss transaction terms with buyer. In general, the transaction terms as follows,

• Token advance: At least Rs. 50K before sharing property document
• 20% - 30% of selling price on or before signing a sale agreement. In the mode of online transfer, DD or cheque
• Balance payment on or before signing a sale deed. In the mode of online transfer, DD or banker cheque (avoid individual cheque which may tend to bounce)

Step 11: (Sale agreement): Buyer shares sale agreement draft in word or pdf format through email. Check if any corrections or modifications require in the draft and provide approval to buyer to proceed with sale agreement printing.

From the seller perspective, following are the few important points to consider in sale agreement,

• Buyer name, address, pan number, and aadhar number
• Property schedule includes land survey number, common area, super built-up area, carpet area, and undivided land share.
• Registration number of a property and khata number
• Selling price in figure and words
• Transactions terms in figures, words, date of transaction, and mode of transaction
• Taxation details. Ex. TDS.
• Tentative date of sale deed registration

Seller and buyer signs all pages of sale agreement. If you are not present in India, your POA holder signs on your behalf, or do the digital signature and share copy through email or inform the buyer to courier the sale agreement to your overseas address for your sign (your presence is not mandatory for signing sale agreement, sale agreement can be signed remotely)

Two witnesses, one from seller and another one from buyer sign on last page of sale agreement. Along with witness sign, witness name, address and contact number should be included in sale agreement

Step 12: (Franking) Buyer franks the sale agreement and proceeds with the home loan application process, which would take around 30- 90 days

Once the home loan is approved and a payment cheque is generated from bank. Mutually decide with buyer on the sale deed registration date.

Step 13: (TDS) Buyer pays the TDS and share the TDS payment challan to seller

Step 14: (Sale deed draft): Buyer shares sale deed draft in word or PDF format through email. Look for corrections, modifications in draft and provide draft approval to buyer.

Buyer prints sale deed draft on document paper.

Step 15: (Stamp duty and registration cost): Buyer pays stamp duty and registration cost in the mode of DD, in the name of respective sub-registrar office. Total of two DD as follows

• Stamp duty
• Registration cost

The stamp duty and registration cost are based on either guidance value or selling price, whichever is higher.

Step 16: (Sale deed registration) On the day of registration, seller, buyer and witness should be present in sub-registrar office.

Seller carry the following documents to sub-registrar office

• Original property documents (refer to step 7) and one set of photocopy
• Active mobile phone to receive OTP, to complete e-sign

Buyer carries following documents,

• Printed sale deed
• Sale agreement
• PAN and one photocopy
• Aadhar and one photocopy
• Active mobile phone to receive OTP, to complete E-sign

The witness should have Aadhar, active mobile phone to receive OTP and complete e-sign

The seller and buyer sign on all pages of sale deed. Witness sign at witness sections.

Buyer pays the balance transaction to seller, seller handovers original property documents and property key to buyer.

This completes the process.

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