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Capital: New Delhi
Official Languages: Hindi and English
Recognized Regional Languages: Assamese, Bengali, Bodo, Dogri, Gujarati, Kannada, Kashmiri, Kokborok, Konkani, Maithili, Malayalam, Manipuri, Marathi, Mizo, Nepali, Odia, Punjabi, Sanskrit, Santali, Sindhi, Tamil, Telugu, and Urdu

Table of Contents

Relevant Contact Info


Office of the Controller-General of Patents, Designs and Trademarks Department of Industrial Policy Promotions Ministry of Commerce and Industry Government of India

Mr. Sh O P Gupta
Controller General of Patents, Designs & Trade Marks
Email: [email protected]
Telephone: (91 22) 241 32735
Website: http://www.ipindia.nic.in
Address: Bhoudhik Sampada Bhavan S.M. Road, Antop Hill Mumbai-400037

Legal Process for Selling Land

Title Transfer for Inherited Property

If the property is inherited, then the title should be changed to the seller’s name by the process of mutation of revenue records. This transfer requires a will or a succession certificate. If one cannot procure a copy of the will, then the local court can issue a succession certificate. With this certificate, one can apply for a title change in the mutation of revenue records office.

Checklist of Documents Required for Selling

It is necessary to procure all the documents required for selling the property in India. Some of the documents include:

The title deed or mother deed of the property

No objection certificate to show the clearance of litigation and debts. Occupation certificate issued by the municipal corporation Plan approval/sanction certificate Cooperative share certificate if the property is a part of a society building Lawyer certificate, if any of the original documents were lost Apart from these documents, the seller should have a PAN card number to sell properties that involve big amount transfers. The NRI can apply PAN to sell the properties or he/she can submit form 60 at the registrar office for the same.

Finding a Right Brokerage Firm

If there are no close friends or relatives to trust with the transaction, it is wise to consult a brokerage firm to assist in the selling process. However, if the seller has realty market sense and people to support then he/she can go ahead with the selling process on their own.

The brokerage firm can help you in suggesting the market situation, finding suitable buyers, price trends and risks involved. They can assist in fixing the selling price, applying for PAN and attorney service to obtain legal documents and tax implications. Although they provide end-to-end solutions, brokerage in India has no legal license and it could be troublesome if the brokerage fee is not fixed properly. It is advisable to find the right brokerage firm and fix the fee before initiating the selling process.

Sales Registration

It is essential to grant the power of attorney for the transaction to a PoA holder. There is no need to grant a complete power of attorney; instead the seller can give ‘Admit PoA’ rights to the PoA holder who will merely represent the owner in the registrar office. According to this, the seller should duly sign all the documents and the PoA holder will represent him in the sale registration.

However, issuing the PoA process differs from time to time and each firm will have a different process. Once the registration is complete, the seller should also concentrate on the tax implications


In India, the real estate market is often looked with a suspicious eye. And why not, we often come across many news citing developers and brokers’ fraudulent activities. It, therefore, becomes very important for any buyer to know what and how to buy, legally. What are the legal aspects that a buyer should consider; how he can safeguard his investment.

An owner of a property has three basic rights over that property, which makes him the “absolute owner.”
I. The right of ownership or title to the property.

II. The exclusive right to possess and enjoy the benefits of that property in any lawful manner.

III. The right to alienate that property. In other words, an owner can part with the property as and when he wishes, and in the manner he prefers to do so provided it is within the legal framework.

Legal procedures and market conditions have however, made it increasingly onerous for property owners to sell their property. For the benefit of such owners, hereinafter follows the basic procedure to sell a property legally in India.
I. Proper valuation: A seller can either self-assess his property or resort to an external source such as a real estate agent, to determine the market value of the property in question.

II. Self-selling versus hiring an agent: The seller has the option to either sell the property by himself, or to hire a real estate agent. Self-sellers may lack the knowledge of the market and also of the legal procedures involved in selling a property. Hiring a professional agent for a small commission is therefore advisable.

III. Advertising: The seller can advertise his property on various mediums such as internet, classifieds, pamphlets, word-of-mouth or through a broker. Once the buyer has been identified, it is advisable to do a background check on the buyer with special reference to his financial capability and reliability.

IV. Obtaining permissions: The seller must obtain No Objection Certificates (NOCs) from various authorities as required. These authorities maybe;

  • Society
  • Income tax authority
  • Municipal Corporation
  • The competent authority under the Urban Land Ceiling and Regulation Act
  • Any other authority.
Thereafter, we come to the most vital stage of documentation. Of late, there has been an increase in the number of property related disputes that are a direct outcome of insufficient or improper documentation. It is therefore pertinent that both the buyer and the seller give due consideration to the documentation of the deal.
The following documents are necessary to this effect:
I. Letter of allotment: It confers the allotment of the property from the relevant authority or society, to the original buyer.

II. Previous sale deeds: The seller should have the original sale deed from the previous owner(s) of the property. It makes it possible to trace the ownership of the property. A property with clear documentation and title is likely to command a higher price in the market.

III. Sanctioned plan: The approved building plan and occupation certificate issued by the competent authority. For example; in Delhi that would either be the DDA or NDMC depending on the area of jurisdiction.

IV. Encumbrance certificate: This is an evidence of free title. A property free of encumbrances commands a higher price in the market.

V. Sale Deed or agreement: Once the aforesaid documentation has been completed, the seller executes a sale deed in favour of the buyer on the basis of agreement to sell entailing all terms and conditions duly listed on a non-judicial stamp paper. After complete clearance of documents, both parties sign the sale deed.

5 Steps for NRIs (Non Resident Indians) to Sell a Property in India

For expats, selling a property in India from abroad is a challenging process, especially if they left the country years back. There are rules for an NRI in selling his/her inherited property in India and it requires legal help. Here is the step wise procedure on how NRIs can sell their inherited land or property legally without any litigation:

The process is quite similar for residential Indians and non residential Indians except for the latter have tax implications and repatriation policies.

Title Transfer for Inherited Property

If the property is inherited, then the title should be changed to the seller’s name by the process of mutation of revenue records. This transfer requires a will or a succession certificate. If one cannot procure a copy of the will, then the local court can issue a succession certificate. With this certificate, one can apply for a title change in the mutation of revenue records office.

This procedure is time consuming and it is advisable to have them changed earlier.

Checklist of Documents Required for Selling

It is necessary to procure all the documents required for selling the property in India. Some of the documents include:

  • The title deed or mother deed of the property
  • No objection certificate to show the clearance of litigation and debts.
  • Occupation certificate issued by the municipal corporation
  • Plan approval/sanction certificate
  • Cooperative share certificate if the property is a part of a society building
  • Lawyer certificate, if any of the original documents were lost
Apart from these documents, the seller should have a PAN card number to sell properties that involve big amount transfers. The NRI can apply PAN to sell the properties or he/she can submit form 60 at the registrar office for the same.

Finding a Right Brokerage Firm

If there are no close friends or relatives to trust with the transaction, it is wise to consult a brokerage firm to assist in the selling process. However, if the seller has realty market sense and people to support then he/she can go ahead with the selling process on their own.

The brokerage firm can help you in suggesting the market situation, finding suitable buyers, price trends and risks involved. They can assist in fixing the selling price, applying for PAN and attorney service to obtain legal documents and tax implications. Although they provide end-to-end solutions, brokerage in India has no legal license and it could be troublesome if the brokerage fee is not fixed properly. It is advisable to find the right brokerage firm and fix the fee before initiating the selling process.

Sales Registration

It is essential to grant the power of attorney for the transaction to a PoA holder. There is no need to grant a complete power of attorney; instead the seller can give ‘Admit PoA’ rights to the PoA holder who will merely represent the owner in the registrar office. According to this, the seller should duly sign all the documents and the PoA holder will represent him in the sale registration.

However, issuing the PoA process differs from time to time and each firm will have a different process. Once the registration is complete, the seller should also concentrate on the tax implications

Focus on Tax and Repatriation Issues

The NRIs have long term capital gains if the property was sold after 3+ years of purchase, the tax for which comes to 20.6%. Further, the basic exemption of Rs. 2 lakh is not applicable for NRIs. There are other tax exemptions available for the NRIs while selling the property.

The sale money can be repatriated through official dealers but it should not be more than US $1 million per year. If the property is inherited from one NRI to another NRI, then you need to get a special permission from the Reserve Bank of India. However, the brokerage firms will guide you through this process.

Constitution

REAL ESTATE LAWS AND REGULATIONS

Notes

Communication history


Source: https://www.telegraph.co.uk/travel/destinations/asia/india/
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