Things to Know – Selling Property Shantanu 4th Yr. NLU, Odisha
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.
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.
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.
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.
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.
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.
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.