Buying and selling property are both big tasks and are very important for both parties. It is generally believed that a person buying a property should be very cautious while making a deal so that he does not buy the wrong property or get into any dispute after buying the property and waste his money.

This is true, but things are not so easy for the property seller as well because many times there are situations in which the property seller gets stuck after making a deal. Many times the buyer makes an agreement by paying a small amount of money and then things are not executed according to the agreement due to which the property owner is neither able to sell the property to anyone else nor is able to get out of the old deal.

So in this video we will talk about some such things or precautions that you should keep in mind while selling any property so that you do not have to face problems. The first thing to keep in mind while making an agreement is that when your deal is finalized, you should tell the buyer about all the papers of the property that you have, i.e. the title chain, and attach its list with the agreement.

The buyer should also be clearly told that these are the documents that I have about the property. The buyer has the option to deal only after understanding them properly. This clause should also be inserted in the agreement that the buyer has understood the property papers after seeing them and on the basis of them, the buyer is making this agreement considering the title to be clear and complete. Otherwise, you will make the agreement but at the time of registration you may be harassed for various documents.

Therefore, all things should be clear about the title chain of the property and this risk should also be left to the buyer so that there is no demand for any other papers or formalities later. If any NOC etc. is required in selling the property, then it should also be decided at the time of agreement that who will process for NOC etc. and what will be done in case of not getting NOC.

Things To Consider When Selling Property

The most important thing after this is never to give possession of the property on the agreement, even if you get the full amount, you can sell the property. Tell the buyer beforehand that you will give possession of the property only on the day of its registration. Many times people take possession from the property owner by paying half of the total price and later if the registration is not done on the expiry date of the agreement, then the seller cannot do anything.

Giving possession before registration can lead to many other problems or legal consequences. Therefore, it should be kept in mind that you should give possession on the same day the registration is done in favor of the buyer. In many agreements, the buyer assignment clause is written, which means that after paying the full amount, the buyer can get the registration done in someone else’s name.

This clause is a trap as it is not possible to take money from someone else’s account and get the registration done in someone else’s name as per his instructions. It is also legally wrong and you may face many income tax related problems because of this. Suppose you made an agreement in favour of A and A transferred Rs. 5 lakhs from his account.

If you are paid in advance, that amount should be shown in your books as sale consideration. In such a situation if you finally get the registry done in favour of B then it will become difficult to adjust the amount received from A in your account.

However, there is a legal way to do the assignment and it can be done, but it is technical, which you should not get into. Therefore, you should make the agreement in favour of the buyer in whose favour the registry is to be done and at the time of the agreement decide that you are not going to get the registry done in favour of any other person.

The fourth and most important thing is the closing date of the agreement, i.e. the date which is fixed for the registry. You must specifically mention the closing date in the agreement and also verbally tell the buyer that you will not extend the time of the agreement under any circumstances.

The agreement should state that time will be the essence of the agreement and if the buyer is unable to get the registry done by not making full payment on the date given in the agreement, then the agreement will be automatically deemed to be cancelled and the property made in advance will be deemed to be cancelled.

The payment will be fitted. Many times the buyer insists that there should be an extension clause so that if such a situation arises, the agreement can be extended. Or if it is necessary to have a clause to extend the due date of the agreement written according to the circumstances in which the agreement is being made, then it should also include a price exclusion clause. This means that in such a situation, if there is an agreement, it can be extended.

And if there is a clause of extension of contract period, then also make it clear that if the buyer does not get the registry done by making full payment within three months and the contract period is extended with the consent of both the parties, then the price clarification will be at the rate of per day. So in this example, if the buyer extends the period for 30 days, then he will have to pay extra. The advantage of this will be that the buyer will not ask for unnecessary extension.

At the time of registration, you should keep one thing clear beforehand that for registration the buyer should be present in his personal capacity, that is, if he wants to get the registry done through power of attorney, then you should first put a condition that you will get the registry done only when the buyer is personally present because getting the registry done through power of attorney can be confusing at times.

Although the seller or the buyer can transact the property through power of attorney and it is also legal, but you should always give priority to the fact that if there is compulsion, the buyer should be present himself. If the buyer cannot come and you have to get the registration done through power of attorney, then at least ensure that the power of attorney is registered and given to a blood relation and you have confirmed the identity of the buyer.

Although there are many things in property transactions which need to be taken care of and this list is quite long, but there are five basic things for the property seller which he must keep in mind so that the property does not get embroiled in disputes due to any wrong deal.

We will be able to tell you five basic things for the property seller which need to be taken care of so that the property does not get embroiled in disputes due to any wrong deal.