Introduction
Selling your property in India as an NRI can be overwhelming. In this comprehensive guide, we'll walk you through the step-by-step process for a hassle-free property sale experience. By following these steps, you'll have a clear plan and approach to make your property sale a smooth and successful one.
Step 1: Consultation with a Chartered Accountant
Before proceeding further, it's crucial to consult with a Chartered Accountant specializing in NRI property sales. They'll guide you through understanding capital gains tax implications and assist in applying for a lower TDS (Tax Deducted at Source). Planning ahead, especially for inherited or jointly-owned properties, can save you time and prevent complications later. Start the process for lower TDS early, as it may take up to 45 days, avoiding delays for potential buyers.
Step 2: Finding a Genuine Buyer
To find the right buyer, explore various avenues. Register your property on online platforms like nobroker.com, 99acres, and magic bricks. Additionally, consult multiple brokers to understand your property's real value in the market. Avoid relying solely on one person's opinion, as it may lead to incorrect valuation expectations. Setting a reasonable price expectation is essential to attract genuine buyers. Avoid dealing in black money; aim to sell your property transparently for the benefit of both parties.
Step 3: Verification of Buyer's Authenticity
When a buyer shows interest, take preventative measures to verify their authenticity. Request 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 determine the buyer's genuine interest. Be cautious about sharing property documents with every prospective buyer to prevent misuse.
Step 4: Agreement to Sell and Registration
Once you've verified the buyer's authenticity, 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. This document marks a binding contract between you and the buyer, enforceable if any party breaches the agreement. If the buyer is availing of a loan, the agreement will be deposited with the bank as a mortgage.
Step 5: Sale Deed and Finalization
Finally, the sale concludes with the Sale Deed or Conveying 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 has 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 carefully executed. Selling your property transparently 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.
The author is a Chartered Accountant and former EY employee, serves as the Chief Consultant of the NRI Desk and Influencer Desk at AKT Associates. He specializes in offering consultancy services tailored for NRIs and is dedicated to creating educational content to raise awareness within the NRI community.
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