Legally Speaking: Things To Do Before You Sell Your House
Selling a property is as difficult as buying a new one. Right from finding a buyer to the execution of the sale deed, one has to exercise extreme caution to extract the best deal.
To assist you in achieving this, MakaaniQ shares some tips.
Evaluate the worth of your property
The first step is to make a proper valuation of the property. You can self-assess your property or get an external source to determine the true value. The prevailing market rate in the locality for similar properties can the yardstick to reach a conclusion.
Get hold of a buyer
The next step is to find a buyer. Make sure you do not intimidate your buyer by demanding too much money for the property. After you arrive at a deal with the buyer, it is important to check the credentials of the buyer in terms of his background, financial capabilities and reliability.
Communicate to the governing body
After satisfying yourself with the credentials of the purchaser, the next step is to communicate to the management of the housing society that you intend to sell the property. In addition, you should obtain a No-Objection Certificate from the management.
You can now get going with the legal documentation of the property. For this, fix an appointment with the sub-registrar to get the property registered in the name of the purchaser. Both buyer and seller need to present on the sale deed execution day, ensure that the time suits both the parties.
The following documents are crucial to sell a property:
Letter of allotment: It is a document that confers the allotment of the property to the seller who had originally purchased the property from the relevant society or authority.
Previous sale deeds: All the original sale deeds from all the previous owners of the property are needed. This method helps trace the property title chain. A property with clear documentation and title commands a higher price. Another important document is the chain of previous agreements with past owners in original, along with original receipts of registration or the original letter of allotment issued to the first owner by the development authority. The seller should have an original sale deed. It is compulsory under law that the current owner have all the previous agreements. The seller needs to register the original deed from the registrar (i.e. the original deed that had been registered by the registrar) and give out a copy of the sale and the receipt from the sub-registrar. Giving a copy of this will trace the ownership of the property and in case there are few documents missing, the property seller can be alerted instantly.
Sanctioned plan: Copies of the approved building plan and occupation certificate by the local municipal authority are another relevant documents.
Encumbrance certificate: A seller should ensure that the property he wants to sell has a clear and marketable title, so that it can help him fetch him a good market price. You can't hoodwink the buyer by giving him false information, this may land you in legal trouble at a later stage.
Sale agreement: After all the documents have been arranged, the parties can enter into an agreement to sell and lay down the agreed-upon terms and conditions. With this agreement to sell as the blueprint, a sale deed can be drawn. The sale agreement precedes the execution of a sale deed on a non-judicial stamp paper.
Also read: 11 Things To Do Before You Sell Your Home
With inputs from Shaveta Dua.