House Sale India: What You Need to Know Before You List

Thinking about selling your house? In India the process can feel like a maze, but it doesn’t have to be. Below you’ll find the exact steps, the paperwork you must gather, and the cheap tricks that keep buyers interested while protecting you from legal hassles.

Step‑by‑Step: From Offer to Registration

1. Decide on a realistic price. Check recent sales in your area, talk to local agents, and use online portals to gauge the market. Overpricing scares buyers away; underpricing hurts your pocket.

2. Get a clear title. Your ownership documents—sale deed, tax receipt, and mutation records—must be free from disputes. If there’s a co‑owner, make sure all signatures are ready.

3. Prepare the sale agreement. This is a simple contract that mentions the buyer’s name, sale price, payment schedule, and any conditions (like pending approvals). A lawyer can draft it in a day, and it protects both sides.

4. Collect mandatory documents. You’ll need:

• Original title deed (original sale deed)
• Latest tax paid receipt
• Encumbrance certificate (usually for the last 13 years)
• Occupancy certificate (if the property is a flat)
• Allotment letter and building plan (for under‑construction units)

5. Agree on payment terms. Most sellers ask for 10‑15% upfront as earnest money, the rest at registration, and the balance after possession. Using a bank guarantee or escrow account adds safety.

6. Register the sale. Go to the local Sub‑Registrar office with the buyer, both sets of ID, the sale agreement, and all supporting documents. You’ll pay stamp duty (usually 5‑6% of the sale price) and registration fee (around 1%). The registrar stamps the deed, and you receive a new sale deed in the buyer’s name.

Taxes, Fees & Common Mistakes to Dodge

Capital gains tax. If you’ve owned the property for more than two years, any profit is taxable as capital gains. You can lower the tax by investing the proceeds in another residential property (Section 54) or certain bonds (Section 54EC).

Service charges and maintenance dues. Clear any pending society or builder fees before you hand over possession. Unsettled dues can become a buyer’s legal ground to cancel the deal.

Beware of fake buyers. Some scammers ask for a large advance and then disappear. Always verify the buyer’s bank details, and prefer a bank guarantee over a personal cheque.

Don’t skip the NOC from the society. For apartments, the society’s No‑Objection Certificate is mandatory for registration. Getting it late can delay the entire process.

Watch out for double registration. In rare cases, a previous owner might have sold the same property to someone else. An up‑to‑date encumbrance certificate prevents this nightmare.

Following these steps makes the house‑sale journey smoother and keeps legal troubles at bay. Remember, the key is preparation: gather documents early, price sensibly, and work with a trusted lawyer or real‑estate agent. With the right plan, you can close the deal in weeks, not months, and walk away with a clean, profitable transaction.