What are the steps involved when selling property in India?

 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 your area. One can get the market value from the information centre of your area 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 interior fittings (Ex: modular kitchen, wardrobes, special flooring, number of washrooms, terrace garden, etc.)

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

Step 2: (Marketing): Take quality snaps of a property using a mobile phone. List property in online property classifiers. It's very important to list a property online because online listing provides quality leads and we can avoid unnecessary walk-in compare to the offline display board.

Listed below are the few reputed property websites

• 99 acres
• Magicbricks
• Housing
• Commonfloor
• Nobroker

When you list the property online, provide all necessary details of the property which includes

• Name of an apartment
• Place
• Size of the property
• Floor
• Main door facing
• Price
• Ownership details (freehold or joint ownership)
• Property snaps

and any other added value of your property so prospective buyers have all the information about a property. Providing more information at first-hand helps to screen the process at very beginning stage,

List the property in all possible websites and just don’t stick to one or two websites because more the listing more the lead coverage.

More importantly, the above websites offer at least one free listing, hence make use of the free listing.

Step 3: (Screening): You will start receiving calls from prospective buyers. It's very important to screen buyers before inviting them for a property tour, screening process saves your immense time and effort.

Below are a few important screening questionaries

• What is your budget?
• How long have you been looking for a property?
• Self-financing or bank laon?
• 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 the prospective buyer for a property tour.

Step 4: (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 5: (Token advance): Once we found a buyer for your property. A 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 like another layer of screening to understand the interest of buyer and they should not misuse property document. In this case, only genuine buyer step forward to pay or they step back).

Step 6: (Property documents): Hand over photocopy of 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 you.

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
• Aadhr and PAN

Step 7: (Verification): Buyer verifies the documents and checks the loan feasibility from bank.

Upon the confirmation of loan feasibility, work on the transaction terms

Step 8: (Transaction): Discuss the transaction terms with buyer. In general, the transaction follow as below

• 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 9: (Sale agreement): Demand sale agreement draft from buyer either in word or pdf format. Look for any corrections or modifications in the draft and provide approval to buyer to proceed with sale agreement printing.

From the seller perspective, 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. (Applicable only if the selling price is more than Rs. 50 Lakh)
• Tentative date of sale deed registration

Seller and buyer should sign all the pages of sale agreement.

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 10: (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 11: (Sale deed draft): Get the sale deed draft from buyer in word or PDF format. Look for corrections and modifications and provide draft approval to buyer.

Step 12: (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 three DD as follows

• Stamp duty
• Registration
• Cess

The stamp duty and registration cost are based on either guidance value or selling price, which is higher in rate

Below are the tentative stamp duty and registration cost for a property in Bangalore,

Value less than Rs. 20 Lakh:

• Stamp duty: 2% of property value
• Surcharge Value : 0.1% of property value
• Cess Value : 0.2% of property value
• Total Stamp Duty : Stamp duty + Surcharge value + Cess value = 2.03%
• Total registration fees: 1% of property value

Value between Rs. 20 lakh - 45 Lakh:

• Stamp duty : 3% of property value
• Surcharge Value : 0.1% of property value
• Cess Value : 0.3% of property value
• Total Stamp Duty : Stamp duty + Surcharge value + Cess value = 3.03%
• Total registration fees: 1% of property value

Value more than Rs. 45 Lakh:

• Stamp duty: 5% of property value
• Surcharge Value : 0.1% of property value
• Cess Value : 0.5% of property value
• Total Stamp Duty : Stamp duty + Surcharge value + Cess value = 5.6%
• Total registration fees: 1% of property value

Step 13: (Sale deed registration) On the day of registration, seller, buyer and witness should be present in sub-registrar office.

A seller should carry the following documents to sub-registrar office

• Original property documents (refer to step 6) and one set of photocopy
• Active mobile 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 to receive OTP, to complete E-sign

The witness should have Aadhar, active mobile 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, seller handovers original property documents and property key to buyer.

This completes the process.

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Thank you for reading and have a great day!!!