Hello All,
This is a blog about my experiences when I tried to sell my parental property, I interacted with various factions of people like property brokers, Builders, Individual users etc.
We started selling to the property which has given us least returns till now (even lesser than the bank returns). We contacted a few brokers from that area and following are the experiences I had with them:
1. They started by pointing at all the negative points, they try to bring down the prices, according to them it always slumps when a normal person try to sell and it becomes a boom as soon as we try to buy.
2. They generally ask for the keys since a customer can come anytime and if a customer leaves a shop then he won't come back. I would suggest don't lend your keys until you trust that broker very well.
3. They have also asked us to give them photocopies of the original registry documents, well this is also not advisable because most banks give a small amount of loans on photocopies of registry documents.
4. There were some genuine brokers were also there, is not all bad out there.
Following are the general steps to consider while selling a property.
Golden Rule: Don't give possession & registry before full and final payment, pay the brokerage after receiving full payment.
Step 1: When the price is agreed between a buyer and seller, Seller should inquire what would be the mode of payment, if the buyer doesn't need a loan then there are no issues proceed to step 2, else go to step 1a.
Step 1a. Check how much loan would bank will be able to lend to the person on to your property, you should go to bank with the buyer along with the documents such as 3 years Income Tax returns, bank statement, Pancard, registry documents, no dues from society, Town & Country Planning certificate.
Step 2: After ensuring payment take the token money ( also known as Bayana) it would be like 25000 or 50000, the two parties will enter into an agreement stating the price and the property details.
Step 3: Now the buyer will issue an advertise in a local newspaper stating that buyer and seller are this for this property (mention property details but not the price), if anyone has any objection on this then please contact to the buyer within 7 days.
Step 4: If there is no objection from anyone then the seller will receive the remaining amount from the buyer in from of RTGS/NEFT from the buyer or cheque from the bank which is providing the loan.
Step 5: Buyer and seller will go to registrar office and for a new registry in the name of the buyer, the seller will sign on that and will give keys of the property to the buyer. Transaction done :)
There are various charges that have to be bear by buyer and seller
Buyer will bear:
1. Registry charges
2. Service tax on Registry
3. Name transfer charges in housing board
4. Light and water name transfer.
Seller will bear:
1. All the dues (Elec. bill, water bill, property tax) till the date of registry.
2. Brokerage to the broker(If any).
I hope I was able to touch on the basics of buying and selling, I will share more as soon as I am done with selling.
This is a blog about my experiences when I tried to sell my parental property, I interacted with various factions of people like property brokers, Builders, Individual users etc.
We started selling to the property which has given us least returns till now (even lesser than the bank returns). We contacted a few brokers from that area and following are the experiences I had with them:
1. They started by pointing at all the negative points, they try to bring down the prices, according to them it always slumps when a normal person try to sell and it becomes a boom as soon as we try to buy.
2. They generally ask for the keys since a customer can come anytime and if a customer leaves a shop then he won't come back. I would suggest don't lend your keys until you trust that broker very well.
3. They have also asked us to give them photocopies of the original registry documents, well this is also not advisable because most banks give a small amount of loans on photocopies of registry documents.
4. There were some genuine brokers were also there, is not all bad out there.
Following are the general steps to consider while selling a property.
Golden Rule: Don't give possession & registry before full and final payment, pay the brokerage after receiving full payment.
Step 1: When the price is agreed between a buyer and seller, Seller should inquire what would be the mode of payment, if the buyer doesn't need a loan then there are no issues proceed to step 2, else go to step 1a.
Step 1a. Check how much loan would bank will be able to lend to the person on to your property, you should go to bank with the buyer along with the documents such as 3 years Income Tax returns, bank statement, Pancard, registry documents, no dues from society, Town & Country Planning certificate.
Step 2: After ensuring payment take the token money ( also known as Bayana) it would be like 25000 or 50000, the two parties will enter into an agreement stating the price and the property details.
Step 3: Now the buyer will issue an advertise in a local newspaper stating that buyer and seller are this for this property (mention property details but not the price), if anyone has any objection on this then please contact to the buyer within 7 days.
Step 4: If there is no objection from anyone then the seller will receive the remaining amount from the buyer in from of RTGS/NEFT from the buyer or cheque from the bank which is providing the loan.
Step 5: Buyer and seller will go to registrar office and for a new registry in the name of the buyer, the seller will sign on that and will give keys of the property to the buyer. Transaction done :)
There are various charges that have to be bear by buyer and seller
Buyer will bear:
1. Registry charges
2. Service tax on Registry
3. Name transfer charges in housing board
4. Light and water name transfer.
Seller will bear:
1. All the dues (Elec. bill, water bill, property tax) till the date of registry.
2. Brokerage to the broker(If any).
I hope I was able to touch on the basics of buying and selling, I will share more as soon as I am done with selling.
