Agreement to Sell Procedure: A Comprehensive Guide
Selling a property can be daunting, especially if it’s your first time. Whether you’re selling a house, a commercial space, or a plot of land, it’s important to follow a proper agreement to sell procedure to ensure a smooth and hassle-free transaction. In this article, we’ll guide you through the steps of the agreement to sell procedure, including the documents required, the legal aspects involved, and some tips to keep in mind.
1. Drafting the Agreement to Sell
The first step in the agreement to sell procedure is drafting the agreement itself. The agreement to sell is a legal document that outlines the terms and conditions of the sale. It should include details such as the parties involved, the property being sold, the sale price, payment terms, possession date, and any other relevant clauses.
It’s important to get this document reviewed by a lawyer to ensure that it is legally binding and protects your interests. Make sure that all the details are accurate and complete before signing the agreement.
2. Verification of Title
Before selling a property, it’s important to verify the title to ensure that you have the right to sell it. This involves checking the ownership records, the chain of title, and any encumbrances or liens on the property. It’s also advisable to get a title search report from a lawyer or a title search agency.
This step is crucial to avoid any legal disputes or complications in the future. If there are any discrepancies or legal issues, it’s better to resolve them before finalizing the sale.
3. Execution of Sale Deed
Once the agreement to sell is signed by both parties, the next step is to execute the sale deed. This is a legal document that transfers the ownership of the property from the seller to the buyer. The sale deed should be drafted by a lawyer and registered with the local sub-registrar’s office.
The sale deed should include details such as the property description, sale price, payment terms, and the signatures of both parties. It’s important to ensure that all the details are accurate and complete before signing the sale deed.
4. Payment of Stamp Duty and Registration Fees
Stamp duty and registration fees are charges payable to the government for the registration of the sale deed. The stamp duty is calculated as a percentage of the sale price, and the registration fees are a fixed amount. These charges vary from state to state, so it’s important to check the local regulations.
The stamp duty and registration fees should be paid by the buyer before registering the sale deed. It’s important to keep the receipt of payment as proof of payment.
5. Handing Over Possession
Once the sale deed is registered, the possession of the property should be handed over to the buyer. It’s important to prepare a document of possession handover that details the date and time of possession and the condition of the property. This document should be signed by both parties and kept as proof of possession.
Some Tips to Keep in Mind
Here are some tips to keep in mind while following the agreement to sell procedure:
– Hire a lawyer to review the agreement to sell and sale deed
– Verify the title before selling the property
– Calculate the stamp duty and registration fees correctly
– Prepare a document of possession handover
– Keep all the documents safely for future reference
Following a proper agreement to sell procedure is essential for a hassle-free property sale. By following the steps outlined in this article and keeping the tips in mind, you can ensure a smooth and successful transaction. Always seek the advice of a legal expert to avoid any legal disputes or complications in the future.