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Introduction
If you’re an NRI planning to sell your property in India, navigating the process might seem overwhelming at first. The good news is, we’ve got you covered! In this comprehensive guide, we’ll walk you through the step-by-step process for a hassle-free property sale experience. By the end of this article, you’ll have a clear plan and approach to make your property sale a smooth and successful one.
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Step 1: Consult a Chartered Accountant
Before you take any further steps, it’s crucial to consult a chartered accountant who specializes in NRI property sales. They will help you understand the capital gains tax implications and advise on applying for a lower TDS (Tax Deducted at Source). Planning these aspects in advance, especially for inherited or jointly-owned properties, will save you time and potential complications later. Initiate the process for lower TDS as it might take up to 45 days, and you wouldn’t want to keep your potential buyer waiting.
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Step 2: Find a Genuine Buyer
To find the right buyer for your property, explore various avenues. Register your property on online platforms like nobroker.com, 99acres, and magic bricks. Additionally, approach multiple brokers to get a clear idea of your property’s real value in the market. Don’t solely rely on one person’s opinion, as it might lead to incorrect valuation expectations. Remember, it’s essential to set a reasonable price expectation to attract genuine buyers. Avoid dealing in black money; strive to sell your property in white for both your benefit and the buyers.
Step 3: Verify the Buyer’s Authenticity
Once a buyer shows interest, take precautionary measures to ensure their authenticity. Ask for a small token amount (e.g., one lakh rupees) and provide them with a copy of your property documents for legal verification. This Memorandum of Understanding (MoU) will help you determine if the buyer is genuinely interested in the property. Avoid sharing property documents with every prospective buyer to prevent misuse.
Step 4: Agreement to Sell and Registration
Once you verify the buyer’s genuineness, proceed to execute the Agreement to Sell. Here, the buyer pays their contribution (e.g., 20% of the property value) and the required stamp duty. The Agreement to Sell is an initial document that marks a binding contract between you and the buyer. After registration, this document can be enforced if any party breaches the agreement. In case the buyer is availing of a loan, the agreement will be deposited with the bank as a mortgage.
Step 5: Sale Deed and Final Payment
Finally, the sale culminates with the Sale Deed or the Conclusive Agreement. This legal document signifies that both parties have fulfilled their obligations—the buyer has made the final payment, and you have transferred the property’s possession. In cases where the buyer availed a loan, the bank releases the balance payment, and you execute the Sale Deed. Remember, the Sale Deed ensures a smooth and conclusive property sale.
Conclusion
By following this step-by-step guide, you can confidently navigate the process of selling your property in India as an NRI. Seek professional advice, verify your buyer’s authenticity, and ensure all legal formalities are meticulously executed. Selling your property in white will safeguard your interests and provide a seamless transaction. Feel free to reach out with any questions or clarifications, and make informed decisions to have a successful property sale experience.
About the Author
CA Arun Tiwari is an expert in real estate transactions and taxation, guiding NRIs through their property sales with years of experience and expertise. His videos and articles provide valuable insights to help NRIs make well-informed decisions in their property sale journey.