Selling Process

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Who is a seller?

 

A seller is any person who sells or agrees to sell property for a consideration paid or promised to be paid or part-paid or part-promised to be paid. A seller should be competent to enter into a contract and make the sale. She must be legally entitled and must have the right to transfer the property to the buyer.

 

Any of the following persons can be a seller:

 

  1. Individual
  2. Builder/ Promoter
  3. Company
  4. Partnership firm
  5. Proprietary firm
  6. Co-operative housing society

 

Using an estate agent or selling the property yourself

 

If you wish to sell your property you can find a buyer yourself or use an estate agent. Before making a decision you should consider how much each method would cost and how much time you have available. If you use an estate agent, it will be more expensive but the estate agent will take responsibility for advertising, showing potential buyers round, and negotiating a price for the house. If you wish to find a buyer yourself, it will be cheaper but you will need the time to make all these arrangements and deal with any problems.

 

Finding a buyer yourself

 

What price to ask

 

If you wish to find a buyer yourself, you must first decide what price you want to ask for the property. Many estate agents do free valuations so it is always possible to arrange for two or more local estate agents to provide this information. If you want a formal valuation, you could arrange for an estate agent to provide this but you would have to pay a fee.

 

In addition, you can find out about the cost of houses locally by looking at local papers, estate agents’ windows and similar houses in the area.

 

Before deciding on a price, you may wish to consider:-

 

  1. doing any repairs or decorating if this would make it easier to sell the house
  2. arranging for a survey if you think there are any major problems that might affect the value of the house, for example, a roof in a bad state of repair.

 

There are some items that you must sell as part of the house unless you make it clear to the buyer that such items are not included in the sale. These are known as fixtures and include such items as fireplaces and a central A.C. system. However, in some cases it is not always clear whether something is a fixture or fitting so it would be useful for you to draw up a list of any items you intend to remove or are prepared to sell to avoid problems later.

 

It is normal practice for a potential buyer to offer a lower price for the house than the seller is asking. You might therefore want to allow for this by setting your price a little higher than the amount you would like to get.

 

Advertising the house

 

You should first of all find out how much the local papers charge for house advertisements and then draft the advertisement on the basis of how much you want to spend. You could use existing advertisements as a guide to the format and wording. It is also possible to advertise very cheaply in shop windows. It is advisable for you not to give the address but to provide a telephone number instead.

 

Finally you could consider drawing up details of the house in a similar way to that of an estate agent, for example, giving details of room sizes, local facilities and fixtures and fittings. These details can then be given to potential buyers, either before they call, or at the time they view. You could also consider advertising the property on the internet.

 

If you wish to use an estate agent

 

If you wish to use an estate agent, you should find out about local estate agents and find out the following information:-

 

  1. what type of property the estate agent specialises in
  2. how much the estate agent will charge

 

Estate agents charges

 

  1. Nearly all estate agents calculate their fees as a percentage of the final selling price of the property, usually between 1˝ - 2˝%. This is known as the rate of commission.

 

If you decide to use an estate agent, the estate agent must confirm the charges and rate of commission that will be made. The estate agent must do this when they agree to act for you.

 

What does the estate agent do

 

The estate agent first of all visits the house in order to value it and decide on an asking price with you. You may wish to ask more than one estate agent to call and value the house. It is also advisable for you to check the price that the estate agent suggests by comparing it to similar houses in the local paper.

 

The estate agent will prepare details of the house to send out to people who are interested in buying it. These details will include the number and size of the rooms and all the fixtures and fittings which will be left in the house. The estate agent also arranges for the property to be advertised.

 

Deciding who to sell to

 

Whether you have arranged to sell the house yourself or you have used an estate agent you may find that you receive more than one offer for the house. You can sell the house to whoever you want and do not have to sell to the buyer who offers the most money. You may wish to take into account whether the buyer:-

 

  1. is a first time buyer
  2. has found a buyer for their own property. If so, is it part of a chain of buying and selling and how long is the chain
  3. is paying cash or is likely to get a mortgage
  4. wants to move at the same time as you.

 

If you are using an estate agent, it is often easier for the estate agent to find out this information from the buyer.

 

Deciding on the price at which to sell

 

If you are using an estate agent, the agent negotiates with the potential buyer(s) about the price. The estate agent should try and obtain the best possible price for you. If you are acting alone, you must negotiate yourself. You do not have to accept the first offer put to you and should not be rushed into making a decision quickly.

 

Accepting the offer

 

Even if you have accepted an offer, there is nothing in law to prevent you from changing your mind and accepting a higher offer from someone else. You should also bear in mind that when an offer is made and accepted the potential buyer can also withdraw, for example, they may not get a mortgage, or the survey may show up some structural problem.

 

If you are selling yourself it may be a good idea to keep the names and addresses of all potential buyers who make offers, in case the one you accept falls through.

 

Choosing who is to do the legal work (conveyancing)

 

When you have accepted an offer you, or the estate agent, needs to inform whoever is doing the legal work. You can do it yourself or through Advocate.

 

Using a Advocate

 

Most firms of Advocates offer a conveyancing service. Although all Advocates can legally do conveyancing, it is advisable to choose a Advocate who has experience of this work.

 

Document Procurement

 

Property papers like Khata, Khata Extract, Encumbrance Certificate, latest Tax Paid Receipts, etc. that are required by the buyer for the closure of the property transaction, in the event that these are not available with you. Cost of procurement of such documents shall be charged extra.

 

Registration & Execution of Sale Deed

 

At the time of registration, sale proceeds will be collected from the buyer in the form of demand draft or other instrument as mutually agreed between the parties. On registration, the sale proceeds will be collected and deposited into your account.

 

What are the various steps involved in sale deed registration process?

 

Sale deed registration process differs from state to state within the country. Following are the few common steps that are followed at the time of sale deed registration

 

  1. Convenient date for registration will be fixed after checking with the Seller / POA holder (in case if it is issued) and the Buyer.
  2. Coordination with the sub-registrar office in terms of the documentation requirement for registration and intimation of the same to the Seller / POA Holder and the Buyer
  3. Registration time will also be checked and intimated to the Seller / POA Holder and the Buyer.
  4. Registration charges like stamp duty, service tax, etc will have to be borne by the buyer and it has to be paid to the sub-registrar office at the time of registration. Mode of payment will be discussed and the payments will be settled by the Buyer to the Seller / POA Holder at the time of registration.

 

The above details are provided for the purpose of reference only. The process & requirements for registration are subjected to change in government policies.

 

PROCESS:

 

Document Procurement

 

Procurement of property papers like Khata, Khata Extract, Encumbrance Certificate, latest Tax Paid Receipts, etc. that are required by the buyer for the closure of the property transaction, in the event that these are not available with you.

 

Registration & Execution of Sale Deed

 

Execute the sale deed on your behalf at the sub-registrar’s office on the designated day and complete the transaction.

 

At the time of registration, sale proceeds will be collected from the buyer in the form of demand draft or other instrument as mutually agreed between the parties. On registration, the sale proceeds will be collected and deposited into your account.

 

Various steps involved in sale deed registration process:

 

Sale deed registration process differs from state to state within the country. Following are the few common steps that are followed at the time of sale deed registration

 

  1. Convenient date for registration will be fixed after checking with the Seller / POA holder (in case if it is issued) and the Buyer.
  2. Coordination with the sub-registrar office in terms of the documentation requirement for registration and intimation of the same to the Seller / POA Holder and the Buyer
  3. Registration time will also be checked and intimated to the Seller / POA Holder and the Buyer.
  4. Registration charges like stamp duty, service tax, etc will have to be borne by the buyer and it has to be paid to the sub-registrar office at the time of registration. Mode of payment will be discussed and the payments will be settled by the Buyer to the Seller / POA Holder at the time of registration.

 

The above details are provided for the purpose of reference only. The process & requirements for registration are subjected to change in government policies.

 

The checklist for selling property is as follows:

 

  1. Finalizing the terms and conditions of the deed
  2. Providing the duration for compliance of various terms and conditions mentioned in the contract;
  3. Procuring the consent, permission, sanction, no objection certificate of the society, if applicable
  4. the income tax authority if applicable
  5. the Urban Land Ceiling authorities if applicable
  6. the Municipality if applicable
  7. any other authority, if applicable
  8. Getting it stamped by paying applicable stamp duty
  9. Not handing over the title deeds and possession until the payment of consideration.
  10. Engrossing the Deed
  11. Registering the Deed