A parent of mine passed away intestate. There are three legal heirs with 1/3 share each. We want to sell property (owned by deceased parent) in gurgaon with 1/3 payment to each heir. Please inform of precautions to be taken. We do not have a succession certificate but we have surviving member certificate. What precautions are to be taken before and during the sale?
I presume property has been mutated in name of legal heirs
2) apply for and obtain NOC from society if property is a flat in housing society
3) obtain no dues certificate from society
4) enter into agreement for sale with buyer .it should mention full payment would be made within stipulated period failing which agreement would stand cancelled and earnest money forfeited
5) get agreement for sale and sale deed drafted by lawyer
6) do not part with possession until full payment is received
1. Since you have clearly mentioned that there are 3 legal heirs, there's no need to give clarity on who qualifies as Class-1 legal heir to the deceased parent, who died intestate.
2. Based on the surviving Members certificate all the three of you collectively sell the property to any prospective buyer.
3. While entering into an Agreement of Sale/Sale Agreement, all the three of you have to collectively take advance amount of minimum 15 to 20% on the sale consideration amount. The advance amount has to be split into three parts in the name of each legal heir preferably either through nett banking, such as NEFT/IMPS or through Demand Draft. Also the Agreement of Sale has to be registered in the jurisdictional Sub Registrar's Office in Gurugram. Let there be clear cut time of 3 months or so for concluding the transaction with breach of contract clauses in the Agreement of Sale.
I'm sorry for your loss. When selling a property as legal heirs, there are several precautions you can take to ensure a smooth and lawful transaction:
Obtain a legal heir certificate: A legal heir certificate is an important document that establishes the identity of the legal heirs. This document is issued by the local revenue authorities and will be required to transfer the property in the name of the heirs. You have mentioned that you have a surviving member certificate, which may be sufficient, but it's best to check with a lawyer to confirm.
Get a valuation of the property: It's important to get a professional valuation of the property to ensure that the sale price is fair and in line with market rates. This will also help you avoid any disputes among the heirs over the distribution of proceeds.
Execute a proper sale agreement: It's important to execute a proper sale agreement that outlines the terms and conditions of the sale, including the sale price, payment terms, and other details. The agreement should be signed by all the legal heirs.
Obtain all necessary clearances: Before the sale, ensure that all necessary clearances and approvals are obtained, such as property tax receipts, electricity bill payments, and any other relevant approvals from the local authorities.
Register the sale deed: The sale deed should be registered with the Sub-Registrar's office in the locality where the property is located. The registration fee is typically a percentage of the sale price and varies depending on the state.
Distribute proceeds equally: After the sale, ensure that the proceeds are distributed equally among the legal heirs as per the share of the property they are entitled to.
Consider hiring a lawyer: It's recommended to hire a lawyer who specializes in property law to ensure that all legal formalities are complied with and to avoid any disputes or legal issues.
Regarding the succession certificate, it's not required for the sale of the property, but it may be required for other legal proceedings related to the estate of the deceased parent. You can consider obtaining a succession certificate to avoid any future legal complications.
I hope this information is helpful. Please consult with a lawyer for specific legal advice tailored to your situation.
If Surviving members certificate is acceptable for the registrar to establish the names of all the legal heirs of the deceased property owner, then that would be sufficient to execute the registered sale deed in favour of the prospective buyer.
A mention can be in the sale deed about the mode of payment of the sale consideration amount, quantum of settlement to each seller etc.
The sale deed can be executed only after confirmation of the receipt of entire sale consideration amount.
Don't accept cheque payment, if accepting the cheque payment, wait until realisation of the same to execute the sale deed.
The other general recitals in the sale deed can be vetted by your advocate before execution.
the purchaser may insist for a letters of administration or an heirship certificate
each heir can receive 1/3rd share from the sale price
no precaution to be taken. if the sale price is beyond a threshold then the purchaser may have to deduct TDS and balance will be paid to the heirs. the heirs can then claim a refund for the TDS from the IT department
each heir may incur long term capital gains tax though
No need of succession certificate.
Mention in the sale deed that possession will deliver after full payment received. IN case of payment through cheque, after enchantment of cheque. Don`t hand over keys and property documents till consideration is received in full.
Collect amount in single hand and then distribute.
As the only legal heirs of the deceased parent, you all need to execute and register the sale deed jointly in favour of the buyer. You may ask the buyer to pay the one-third share of each of you separately on or before the registration and mention the fact in the sale deed, among all the relevant facts in the recital part.
You can sell the same by executing joint sale deed
- As per law, after the demise of your parent intestate , his property would be devolved upon all his legal heirs equally
- Further, as you already got the surviving member certificate , then after submitting the copy of the same , you can apply for mutation of the property in your & others names, and even independently.
- Further , you can sell your share in the property or can sell jointly .
First of all execute a family settlement deed between all three heirs and settled the rights of each other than based on that settlement sale the property to purchaser. All the documents like agreement to sale with purchaser, or sale deed should be registered and all three heirs should be signed the same.
