1. Things to Know – Selling Property
Shantanu
4th Yr.
NLU, Odisha
2. Written Agreement
• You must execute the sale through a written
contract and not through an oral agreement.
• The existence of a written existence can be
established more easily than that of an oral
contract.
3. Registration
• The written agreement must be registered if
the value of the immovable property is more
than Rs. 100.
• An unregistered agreement will not be held
valid in a court of law.
• Except for gift or inheritance, in all other cases
some consideration must be paid in lieu of
transfer of the property.
4. Stamp Duty
• The registration of agreement must be
accompanied by the required amount of
stamp duty.
• Non- payment of stamp duty will nullify the
transfer.
5. Description of Property
• The property must be defined in clear terms.
• The agreement must clearly state its location,
nature, dimensions, etc.
• Also define the things which are to go along
with the property, like furniture or fixtures.
6. Free of Encumbrance
• There should not be any encumbrance upon
the property.
• It should not be hypothecated, mortgaged or
pledged.
• If it is, then the buyer must consent to honour
the encumbrance.
7. Ceiling Limit
• If the property to be sold is land, then it must
be ensured that the transfer should not
exceed the ceiling limit.
• Ceiling limit is fixed by the State Government
and could be different in different states.
8. Other Provisions
• If the seller belongs to SC/ST category, then
his land cannot be purchased without taking
prior permission of the government.
• Purchase of agricultural land also has similar
limitations.
