Hi
I am an NRI and I am planning to sell my plot in Bangalore.
Due to personal reasons I cannot take a long leave from work.
So I would like fly to India, sell the plot asap, fly back.
What's the best approach to take so that I can wrap it by spending minimum time in Bangalore?
Also, I do not have any prior experience selling property. So I am totally confused about how to go about this.
- Do I need a broker to sell or is it OK if I just post it online (CommonFloor, 99acers, Magic Bricks etc.)
- What are the parts of the process that I can get done from here?
- I hear brokerage is about 2% for the seller and seller really doesn't need a broker if you can find a buyer via some website. Instead a real estate advocate would do. Is it true?
Thanks in advance.
NRI: How to do the plot sale paperwork/deal in minimum time
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happygolucky
- Posts: 4
- Joined: Sun Aug 12, 2012 11:08 pm
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direstraits88
- Posts: 746
- Joined: Sun Feb 18, 2007 2:10 am
NRI: How to do the plot sale paperwork/deal in minimum time
You can try all the above sites or approach any RE broker, etc.
It all depends on the location of the site, type of site (BDA or not) and the price you want. If it's a site in the outskirts without any development yet, it'll be a harder sell.
Unfortunately, there's nothing like current market price. Each broker will give his own price. There's no guarantee they can sell for that price. If you are lucky, you may find another seller selling in the same layout which can give you something to compare with.
Some sellers want to sell for X amount and willing to wait years to get their asking price. Others need to sell ASAP and willing to take "lesser" amount. Willingness to take money in black may potentially help but it has it's own challenges.
If you need the money in USD, you may be better off finding a NRI willing to buy and complete the transaction and make a trip for registration.
It all depends on the location of the site, type of site (BDA or not) and the price you want. If it's a site in the outskirts without any development yet, it'll be a harder sell.
Unfortunately, there's nothing like current market price. Each broker will give his own price. There's no guarantee they can sell for that price. If you are lucky, you may find another seller selling in the same layout which can give you something to compare with.
Some sellers want to sell for X amount and willing to wait years to get their asking price. Others need to sell ASAP and willing to take "lesser" amount. Willingness to take money in black may potentially help but it has it's own challenges.
If you need the money in USD, you may be better off finding a NRI willing to buy and complete the transaction and make a trip for registration.
NRI: How to do the plot sale paperwork/deal in minimum time
At a minimum, expect a 2-3 month window to complete your sale after you find a buyer. While your physical presence may not be needed for the entire duration, you will need someone local to do some legwork.
Sure, you may chance upon a really quick deal and be done within days, but such cases are a rarity.
As for basic steps, in chronological order:
[LIST=1]
Hire a good advocate; get the latest check list of documents you would need for registration after you finalize the sale. This is a living and breathing list that keeps changing at the govt?s will.
Gather the originals of documents in the above check list. Make a few copies of the complete set of documents to share with serious and interested buyers.
You can either advertise online or go through a broker depending on the location and salability of the property. For lower value homes the commission is generally 2%, and for higher values it is a mutually agreed upon lump sum amount (< 2%).
The onus of verification of your documents lies with the buyer who will engage his own advocate. Pre-screening of all documents by your advocate will make this process less painful.
Once you zero in on the buyer, discuss payment terms and timeline for full settlement and registration. The norm is to first go with an agreement against an advance payment, and to register the property against full payment within 3 months (negotiable) of signing the agreement. This is when you also discuss the proportion of white money and otherwise that will be transacted. Be prepared with a plan to park the cash monies you will receive.
Once registration is done, apply for certified copy of the registration papers, which take 3-6 weeks. Your advocate usually collects this on your behalf.
[/LIST]
Sure, you may chance upon a really quick deal and be done within days, but such cases are a rarity.
As for basic steps, in chronological order:
[LIST=1]
Hire a good advocate; get the latest check list of documents you would need for registration after you finalize the sale. This is a living and breathing list that keeps changing at the govt?s will.
Gather the originals of documents in the above check list. Make a few copies of the complete set of documents to share with serious and interested buyers.
You can either advertise online or go through a broker depending on the location and salability of the property. For lower value homes the commission is generally 2%, and for higher values it is a mutually agreed upon lump sum amount (< 2%).
The onus of verification of your documents lies with the buyer who will engage his own advocate. Pre-screening of all documents by your advocate will make this process less painful.
Once you zero in on the buyer, discuss payment terms and timeline for full settlement and registration. The norm is to first go with an agreement against an advance payment, and to register the property against full payment within 3 months (negotiable) of signing the agreement. This is when you also discuss the proportion of white money and otherwise that will be transacted. Be prepared with a plan to park the cash monies you will receive.
Once registration is done, apply for certified copy of the registration papers, which take 3-6 weeks. Your advocate usually collects this on your behalf.
[/LIST]
NRI: How to do the plot sale paperwork/deal in minimum time
Good points by teera. The key for a quick sale transaction is the location where the plot is located. The location will drive the demand, number of enquiries/offers, and sale.
Where is your plot located, size, and your asking price?
If you can find somebody in this forum, it would be much simpler.
Where is your plot located, size, and your asking price?
If you can find somebody in this forum, it would be much simpler.
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GutsyGibbon
- Posts: 1267
- Joined: Fri Jan 19, 2007 2:56 am
NRI: How to do the plot sale paperwork/deal in minimum time
teera;591891Once you zero in on the buyer, discuss payment terms and timeline for full settlement and registration. The norm is to first go with an agreement against an advance payment, and to register the property against full payment within 3 months (negotiable) of signing the agreement.
I second the comment about not taking an advance payment. Often people pose as direct buyers and make an advance payment. After this, they go look around for a direct buyer, they show your plot to others. While they find this buyer - they will delay the sale with you. As you have taken the advance, they act like goons - as the sale is delayed by a few months - the way the market is working - the prices would have gone up by then. They make a hefty middleman profit. What would be irritating is dealing with these middlemen/goons. Be very cautious in finding your buyer, too many goons out there.