Selling land in India is not a very complicated process. You must follow certain steps patiently to sell your piece of land whenever needed.
Introduction for Selling a plot of land
Intricate procedures to sell land are as given below:
- Verbal contract: The seller and the buyer can have a verbal agreement over the purchase or sale of the land, which involves physical inspections of the plot and negotiations over the price.
- Preparation of contract: Once both parties agree upon the verbal contract, it is necessary to type or print it on the legal papers to avoid any miscommunication in the future over the negotiations. It is advisable to hire a lawyer to do this job. You need to Know about details on how to sell plot online.
- Pay stamp duty: Once your deed is done, it is time to pay your stamp duty, the value of which is approximately 3 to 7 percent depending on the state.
- Execute and register sale deed: The next step is the most important one: you must visit the sub-register office to execute and register your sale deed. You must submit all the relevant documents, including your identity proof and the photograph of the land, and in some states like Maharashtra, the property card is also required.
- Property mutation: It is the process of transferring or changing the title entry in revenue records of the local municipal authority or the panchayet. To do this, you must visit the municipality or the panchayat with a copy of the sale deed.
Registration Charges Or Property Prices To Buy A Piece of Land
Registration charges vary from state to state. The states ask the buyers to pay 1% of the value of the land as the registration charges along with the stamp duty.
A few states have a flat rate to complete your land and sell plot online process: https://dolr.gov.in/en/gift-deed. The buyer must always bear the stamp duty and registration charges while purchasing land in India. On the other hand, the seller must pay capital gains tax over the amount he got by selling his land.
All the metro cities in India like Bangalore, Mumbai, Delhi, and Chennai have charged their citizens 1% of the property market value. In contrast, in Kolkata, it is 1.1% of the total property market value.
Different Types Of Property in India
Properties can be classified as movable property and immovable property. The first is the movable property and immovable property. Immovable properties are mainly land and houses. We can classify the houses into different categories such as bungalows, apartments, villas, etc. The stamp duty of these properties differs depending on the property’s valuation.
Ownership of property can be transferred in two ways:
- Voluntary transfer- when the owner transfers the property willingly by gifting or by signing the will. It is called voluntary transfer of immovable properties.
- Involuntary transfer- It happens when the transfer of property happens without the explicit consent of the owner. It usually happens in cases of divorce decrees, failure to pay property taxes, asset seizure in case of debt default, and due to natural disasters. Get the Land Registration Documents Online with our Online Portal
Below are the five ways of transferring legal plots in India:
- Through inheritance or will.
- Through enabling the co-owners to legally transfer their property’s share to another co-owner of the property.
- Through settlement or partition of properties.
- Through gifts.
- By purchasing the ownership of the property.
Sale deed: The Sale deed is the most popular way of transferring property in India. Suppose you own land you want to sell, and then you can consider the execution of the sale deed. Registration of the sale deed with the sub-registrar office is mandatory. Once it is done, the ownership gets transferred to the new party.
Gift deed: This type of deed is used when someone wants to gift a plot or a house to some of his blood relatives. You can Know about the Deed Format for Gift from our expert team. In the case of land or house, it has to be registered the gift deed as per section 17 of The Registration Act, 1908.
Relinquishment deed: When there are multiple plot owners, and one of the co-owners wants to transfer his share to one of the other co-owners, then this can be done with a relinquishment deed or release deed.
Partition deed or settlement deed: It is generally executed by the co-owners of land when a court order or order of any local revenue authority.
Will deed: You can own land through inheritance or will deed. When a person dies, the property is transferred according to the will of the deceased person.
Documents Needed For Plot Registration:
There are certain documents required at the time of plot registration, such as:
- Identification proof.
- Two passport photographs of both parties.
- Sale deed.
- Power of attorney if any one of the parties cannot be physically present at the registration time.
- If the party is a company, a copy of the resolution of the company’s board is needed, along with a power of attorney.
- Property card.
- Receipt of stamp duty and registration fee.
Along with all these documents, you must submit the deed’s original copy to the sub-registrar office: one original and two sets of photocopies. If you can not submit all these documents at the time of registration, then there is a time period of 4 months from the date of execution within which you have to submit them to the sub-registrar office.
Benefits Of Plot Registration
When you buy a plot, it is your duty to hold it for your future endeavor. It is always advised to register your plot to protect it. It assures against any type of encroachment and other legal litigations. It provides documentation or maintains records about the plot with the government agencies, which protects your ownership over the plot. So, any time you want to invest in land/plot, it is necessary to register it to get your legal title over the land.
Selling land or plot is not an easy job in any country. It involves a lot of paperwork along with a great amount of time. Earlier it was not that tough to deal with this type of situation, but nowadays, because of the current situation in the market prices and increased number of documentation, the process of selling plot has become much more complicated and time taking. It may take years to find the best suitable deal for you. With technology booming, people can use several web portals to promote their plots, which are available for sale. Vakilsearch brings a comparative blog post for people who are in the process of selling their plots. For any more information or legal help please get in touch with the experts from Vakilsearch.
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