Things to keep in mind while selling

 Things to take care while selling

1. Avoid giving or sharing original property papers: Also avoid, sharing color photo-copies since that looks almost like original. You can share in person (but do not hand over), Share only Black n White copy. If you have to give to the buyer, mark in the photo-copies that it is given for so and so purpose. The biggest problem in giving such papers is that it can misused, copied as original and registration of the property can happen with those copied papers. 

2. If selling to multiple people (or family), have everyone's name in the agreement of sale. That way, everyone will be accountable for completing the transaction. If you only put one name but others are making the transaction from their own account, then it can be a problem if the transaction owner comes and says that the transaction was done as a loan to the person rather than selling for the property. 

3. Whoever is buying the property, take money only from that person. Do not take money from 3rd party since that can land into trouble as he /she might say, the money was given for loan (rather than for property purchase). Therefore, having everyone's name on the agreement of sale and registration of the property is good. 

4. Mention bank loan if any: If you have taken a loan on the property, do mention that there is a bank loan on the property. And original sale deed is with the bank. that way buyer can not complain that you did not tell them about the same. 

5. Make sure any additional terms and conditions agreed upon is done in writing. Lot of times, we see that verbally we agree on something but it is not put in writing. In such cases, either buyer or seller can disagree with the terms agreed upon. There is no way for seller to prove these. Hence, it is best to ensure that all agreed upon terms are written and mentioned explicitly in the agreement of sale. 

6. Final payment before the registration should be via DD: Avoid check since it can be bounced for any reason including non-sufficient funds). The cost of DD is not big compared to property transaction. Online transactions are fine too. If the check is bounced but registration happens, you might find it hard to get hold of the owner or to get the remaining payment from the owner. Therefore it is important that all payments are done and complete before the registration. It can happen on the same day as registration but before registration. and not after.

7. Avoid giving keys or give the property for rent before the registration. This can lead to trouble if the transaction does not complete. A small percentage of transaction does not complete despite signing agreement of sale. The owner might make modifications or might not vacate the property. This is especially true if the transaction is not amicably settled. 

8. If buying an apartment or house or office like space, get the mention of furniture and any other fixture like lights, AC, Fans etc: Mention clearly what is included and what is not included for sale along with the property and whose responsibility is to dispose of the same.

9. If property is rented out to another person, do mention the same in the agreement. Sometimes tenants might may play foul role in vacating the property. Sometimes, they mention bad things about the property like price is low or too many problems like leakage etc in the property. It is good practice to have tenants on our side for the same.. 

10. Give the list of papers which you have given to the buyer and get it signed from the buyer at the time of handover: This is to ensure that buyer does not bother you after selling that I dont have xyz document. This is a good practice to have.

12. If buyer is taking loan, then clause for loan rejection. This should be only if loan is rejected only due to property valuation or some other property reason. But for person's income (or CIBIL issue or related to person's capacity), transaction can not be canceled. 

13. Buyer should take TDS: Remind the buyer if he has not deposited TDS under your name. This is a good practice and save you and buyer some hassle in case IT people come back. 

14. Do pay taxes as appropriate: Ensure that you pay the Capital gain (short/long term). There is no point in saving taxes or doing cash transaction. You likely made profit on the transaction and good to pay appropriate taxes for the same.