While property sure offers a lot of perks, it also comes with its own set of complicated procedures and transactions. We are talking about the sale and purchase of the property. Selling and Buying of any property is as such complex, the matter gets more complicated when the seller is an NRI selling his inherited property. It is not uncommon for NRI to sell their inherited property as they have been living overseas for decades, and have no intention of returning .
Steps to follow for the sale of Inherited property
- Transfer of title of property – The very first step an NRI should take is to get the title of the inherited property transferred to his name. Property can be transferred by the process known as mutation. For mutation, the NRI would require to produce the will; in absence of a will, the NRI would have to submit the Succession Certificate issued by the local court.
- Documents required to make the Sale – Once the title is transferred, the next step is to have the following documents in order,
- Original Purchase Document of the property
- Original Share Certificate, in case the property is a part of a co-operative society. The new owner, NRI in this case, will have to publish a notice in the newspaper as well as on the society notice board to make sure that there is no objection.
- No Objection Certificate from the society stating that the members of the society have no objection to the sale of the said property. Moreover, it is important to confirm that the seller does not have owe any outstanding payment to the society.
- A copy of the approved plan and the occupation certificate issued by the concerned local authority.
- If the seller does not have the above documents in original, he must secure a lawyers certificate proving your ownership.
- PAN details are a must in India, for any big-ticket transaction especially Property. A NRI must acquire a PAN for the sale as he/she would require to file for tax exemption under section 197.
- Decide the preferred way of the sale of property – A NRI has two options available to make the sale. He can either do it by himself or hire a specialised firm or organisation to make the sale on his behalf. Hiring the services of the professionals is a better option for NRI, as they will take care of the entire procedure, from identifying the buyer, to finalise the sale deed. They will further handle the legal issues and tax issues on your behalf
- The Transaction – After the completion of all of the above steps, now is the time for the actual sale to take place.
- The right sale value – The market value of the property is determined to arrive at a sale price, by doing. A proper study of the surrounding, either by the hired firm or the NRI, as per the chosen mode of transaction.
- Structure of Transaction – Both the parties must decide on the mode of payment. Most of NRI prefer cashless transactions, contrary to the prevalent trend.
- Admit PoA – The NRI seller would have to issue an admit PoA, for the third party to represent him in the registration process. Admit PoA only allows the empowered person to represent the principal.
- Tax Issues – In case of NRI the tax will always be deducted at source.