We plan to sell our tiny ancestral 1200 sqft property in Andheri East Mumbai on which sits a old house/bungalow of ground plus one, built by our ancestors. The ground plus one should be around 2000sqft approx. We are four share-holders in the property. We have all come to an agreement to sell the property. -What are the documents we would need for sale of property? -One owner of the property, my uncle, is deceased. He entrusted his share to me and my wife in his Will. I got the share transferred to our names on the property card. His name however is still in the property tax. Is it important that I take his name off from the property tax as well - for the sale? -What is the best way to do sale (money) transactions to avoid buyer giving down payment and then giving us a run for the balance. I hear that this has been happening a lot in Mumbai and around India.
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Entry in revenue records is only for payment of taxes and does not confer any title to property
2) if uncle executed will you should have applied for probate of will in Bombay HC
3) sale deed had to be executed by all 4 co owners of property
4) not necessary to execute agreement for sale
Thank you very much Ajay Sethi for your response. One clarification - Does it mean it is not essential for me to take the deceased name off from property tax to sell the property? Please clarify as we do not want our sale to be held up because of this? Could you also answer my last question in my questionnaire....What is the best way to do sale (money) transactions to avoid buyer giving down payment and then giving us a run for the balance.
It is necessary for you to take the deceased name of the property, sale deed has to be executed by all the 4 co-owners. This is a procedural aspect you may contact a local lawyer who will get the things done for you in a easy and convenient manner.
Once mutation of property is done in name of legal heirs property tax bill would reflect name of co owners
2) you must remove name of uncle in property tax bill
3) if you want to avoid purchaser failing to make balance payments insist that you would enter into sale deed as a nd when purchaser has arranged funds for purchase of property
Four of your together may authorise one of you, to sell this property under a power of attorney. No need of mutation in the property card/tax to sell of this property.
1. Mutate your and your wife's name in the share of the property standing in the name of your said deceased Uncle first.
2. Then enter in to an agreement for sale with the buyer with a carefully drafted forfeiture clause stating that the advance paid by him will be forfeited if the buyer fails to pay the balance amount and register the property in his name within next 3 months and in which case the instant agreement for sale will be considered by both the parties as cancelled without having to give notice to the other party.
3. It should be clearly mentioned in the agreement for sale that full payment shall have to be made with in 3 months from the date of signing the agreement and possession will be handed over only after receiving the full payment and completion of registration of the said property in favour of the buyer.
1. Though it is not mandatory to mutate your and your wife's name in the property records in place of your late Uncle's name, it is always prudent to up date the mutation.
2. Make the agreement for sale stating that the balance amount shall have to be paid with in next 3 months from the date of signing the agreement and possession of the property will be handed over if and only if full payment is made and the property is registered.
3. The above clause along with the forfeiture of advance clause will adequately make you safer from any breach of contruct by the buyer.
Hi, probate the WILL from court and get the share transferd in your name .. Once the property gets transferd in your name through court , there is no need to exclude the name from property tax..2) to avoid any complications in during sale agreement and at the final sale deed , receive the money through cheque and not cash
1. The original title deed of the property is required to convince the prospective buyer that your title is free and marketable.
2. Get the property tax bill changed to you and your wife's name. This is not mandatory, but at times such things turn away some cynical buyers.
3. Enter into an agreement to sell which should be flawlessly drafted by a lawyer. If after making the payment of earnest money the buyer does not come to pay the balance then his earnest money should be forfeited. You can then file a suit for specific performance against him to seek judicial orders from the court to him to take all the necessary steps for the execution of sale deed.
The documents needed to sell the property are the title document, current encumbrance certificate, legal heirship certificate, property tax receipts, ID proofs of the shareholders, water tax receipts, electricity connection consumer number with card, any other relevant documents pertaining to the property.
The copy of the will and the copy of the property tax card shall be sufficient to prove your ownership of the share of the deceased uncle.
You must insist the buyer to pay the full case and then get the property registered on his name, without the receipt of full sale consideration amount, do not execute the registered sale deed in his favor.
One clarification - Does it mean it is not essential for me to take the deceased name off from property tax to sell the property? Please clarify as we do not want our sale to be held up because of this?
It is not necessary to remover the name of the deceased from the property tax receipts, the will and change of name in the property tax card shall be an evidence to prove your ownership/title.
What is the best way to do sale (money) transactions to avoid buyer giving down payment and then giving us a run for the balance.
Until the full sale consideration amount is settled, or the cheque is honored, do not execute the registered sale deed in favor of the buyer.