hi I am C Arun tiwari and in today's
video I am going to talk about what is
the complete procedure of selling
property for an arise so let's begin
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so hi uh most of time I get this
question that so how I should proceed to
sell my property I'm an NRI I am abroad
and uh what is the first step what is
the Second Step so it's quite possible
because it is maybe that first time
you're going to sell your property okay
and you are far from India and you are
not aware that what how you should
proceed so in today's video I'm going to
explain step by step approach of selling
property which is standard all across
India with some here and there some
changes okay but at least you will have
a uh you will get a broad idea that how
you want to proceed when you want to
sell property as an NRI in India
right so uh I will write all the steps
and then explain you I think that will
make more sense so let's begin that way
so when you decided to sell your
property in India the first very much
first step of course you have to tell
your agents or you have to spread the
words that you want to sell a property
and after that you generally buyer visit
your property and maybe some buyer will
like your property so very first step
after somebody Express the interest in
your property is to sign
a document which is called memorandum of
understanding mou okay it's a hundred
rupees stamp paper uh it is not a legal
document but it is the initial agreement
document where two things are mentioned
number one is mentioned the price of the
property at which both of you buyer and
seller has agreed to sell the property
number two you have to agree payment
terms so how buyer is going to make
payment what will be the due dates and
all things right and generally when mou
is signed with that buyer gives you some
token amount which can be anything
between 50k to 1 lakh now it can be
refundable or it can be non-defendable
in case buyer doesn't go for that
property uh normal term is that see
generally it's a big amount 50k one lakh
okay in North India generally it is not
refundable but in other countries
generally it is refundable now again it
depends on your convenience
but in most of cases if Suppose there is
any legal problem and due to Legal
problem buyer doesn't want to proceed
with the property you have to refund the
whole token money in case suppose he
back out due to some other reason then
you have a right to retain the property
but again there will be there can be
some like uh because it's a big amount
and nobody want to leave that and you
also do not want to get into some kind
of litigation or argument it's always
better that if he is not happy with your
property let him go and find another
buyer then just to fight on this small
cases okay if you are a resident you can
fight on these cases but mostly I will
recommend that if he doesn't like the
property you can refund yes the property
was blocked for some day but it's fine
but you also understand this is very
important to take because it shows that
buyer is genian and he's really
interested in a property so after this
first step when you're signing the mou
happens he gives you some token amount
and then you give generally them a copy
of your documents for legal verification
oh okay so it's a Xerox copy which you
have to give to
buyer and buyer generally uh submit that
documents to their bank or their lawyer
and they do they check the legal part of
that right so after this first uh This
Thing Once buyer finds that everything
is fine and their bank is uh ready to
fund the property or they have the go
ahead from their lawyers then second
part is basically called payment of
uh you can say down payment or is it's
called payment of first part so some
places uh it is called down payment some
places it is called payment of first
part okay which can be anything between
10 to 20 percent of whole property
amount
so suppose you are saying uh selling a
property of one CR so it can be either
10 lakh rupees or it can be 20 lakh
rupees generally it is 20 in most of the
places Norm is 20 because most of the
cases Bank fund 80 so 20 generally is
paid by buyer so this is a buyer
contribution buyer's contribution from
their own pocket which they pay you and
then after paying that immediately you
can go to step number three and which is
called uh registration of agreement to
sale so the first and foremost or more
very important document is there which
is called agreement
to sell
I think it's ATS you can I remember very
simple agreement to say so agreement to
sell is basically an agreement where you
both are now legally bound now nobody
can back out because buyer pays here
stamp Duty on the whole property amount
which is five to six percent which
depends state to state but generally is
five percent to six percent and you also
silence sign an agreement that means
nobody can back out from this tape and
this step so this is a last step from
where if somebody can walking before
signing a registration not signing
registration of agreement to sell so
here
after this registration generally buyers
submit their document to bank 4 uh you
can say disbursement
okay so the fourth step is generally uh
is called after that suppose he submit
uh that uh agreement to sell with other
documents uh for to the bank for the
final disbursement so this is called
disbursement okay so disbursement means
the 80 part or 90 part which was
spending is it is it is paid by uh
biased bank or buyer himself if he is
funding completely from his own pocket
and then generally the last part is you
hand over the property okay uh and then
there is another DD sign which is called
deed of
sale now this deed of cell is a
mandatory in some states and some state
it is not mandatory right so basically
this is a final document after that
generally you hand over the property
because you got all the money and the
whole procedure this whole selling
procedure comes to and
so by this uh whatever I have written
you might have got a clear idea that how
you have to proceed so step number one I
told you you have to sign an mou where
generally they pay you some token money
okay after that he pays on contribution
which is called part payment or down
payment okay and after that you go for
First Agreement which is called ATS
agreement to sale then after agreement
to sale he submit that documents to bank
for the final disbursement and after the
approval of the loan comes the bank pays
you the amount in your account and the
amount is paid in your and our account
okay so not in another account and after
that uh you once you receive the full
amount you hand over the position of the
property and you sign another agreement
which is called sale deed the sale deed
is not mandatory in many places but some
places people prefer to keep because
this is the final agreement where it
says that all the promises are met buyer
has paid all the amount seller has
handed over the property and everybody
is happy now we are going to using this
chapter so this is the Earl agreement
itself now one more important part comes
into picture which is the most important
part and that I will tell you how it
works which is called Lower tedious
certificate so you understand you might
be aware if as an NRI seller you are
going to sell your property uh you have
to pay a TDS which is anything between
23 percent to almost uh 29 of whole sale
value so understand it's a wholesale
value complete sale value not on the
profit part or capital gain part okay so
it is suppose you are selling a property
of one crore it is 23 lakh you have to
pay as a TDS of course you can file
return you can get a refund but you have
to first deposit that 23 lakhs rupees as
a tedious in government account who has
to pay this buyer has to pay this after
deducting from your payment account so
basically it is your payment which buyer
pays to government account instead of
paying you so you have to happy with I
think 77 of the who sell value if you
want to avoid this unnecessary 23
percent holding up for more than one and
a half year because you have to file
return then wait for another six months
and maybe after one and a half year or
maybe two year you will get your money
so if you want to avoid that there is a
procedure called Lower TDS certificate
LTDs which already I have spoken a lot
of thing and I think my uh my this
channel is uh full with the videos
related to lower ta certificate now the
thing comes into picture when you want
to go for LTDs okay we you do not you do
not want to block your 23 percent uh
during this sale so how to proceed that
let's see that so the first important
part before you uh find a buyer once it
is sure you are sure that you want to
sell the property and you are ready to
go ahead with the procedure you have to
do some documentation okay so generally
this lower TDS part takes uh 30 to 45
days the problem is that first finding a
buyer is very difficult on your term on
your price then after that if you ask
him to stop or to
um you can say wait for 30 40 days
definitely he will run away okay so the
best part when you uh decided when you
are already uh
sure that you want to sell property you
can contact us and we generally start
filing of lower TDS in advance okay it
saves that 30 40 days uh when once you
get and get some buyer once you finalize
some buyer so what how it works so low
it is part there is two phases one phase
uh the phase one we can do without buyer
in phase two we have to do with when you
find a buyer when you finalize the buyer
so how you have to do once you decided
that you want to sell a property you
have to send us a documentation like
your purchase of the property
documentation and some other document
which will send you as a detail and then
we'll start the work of that so first
part of that is we transfer your pan
number to International jurisdiction so
basically not all income tax officer can
issue the lower TD certificate only
income tax officer who are sitting in
income tax International jurisdiction
and they can only issue so we have to
transfer your plan to International
jurisdiction which itself take 10 to 15
days then after that we will prepare all
the computation everything and we'll
keep it ready so when the buyer comes we
can file the application for lower Tes
within three to four days not more than
that right so this phase one we can
complete before you you find a buyer and
after the phase one is done every
documents are there we are ready with
all papers and everything uh to file the
robot areas you can go and you can find
a buyer and you can follow the same
process which I told you now another
thing you remember if you want to get a
lower TDS as a token money don't take a
big amount because on token money you
will not get a benefit of lower TDS
right so benefit of lower TDS you can
only get on the amount which you accept
after you have filed the application for
LTDs so suppose uh once you get the
buyer then only you can file the LTDs
right but before that you have to take a
token money so accept a small token when
maybe 50 000 rupees one lakh rupees
don't accept our token money of 5 lakh
10 lakh Rupees because then on that
amount you have to pay 23 so of course
as I told you simple procedure first we
do the phase one without buyer and then
after you get a buyer buyer will pay you
some token money then after that buyer
will apply for a tan number it is a time
number not a pan number so explain the
buyer boss because I'm NRI so you cannot
do with pan number you have to apply a
tan number and after you get the 10
number then we can immediately apply for
lower TDS now once we apply for low TDS
lower TDS takes 30 days at least to get
process but in between you can go for
the step number two which is called ATS
agreement to sell you can make an
agreement to sell after accepting 20 so
once we file the lower TDS application
you get the acknowledgment of that then
after that you can accept the 20 part
you can go for agreement to sale and
after you go for agreement for sale
then he will apply for loan uh generally
Bank also take 30 40 days minimum they
take generally 60 days okay so parallel
our application to uh sorry low tedious
application will be processed and
parallely his application for loan will
also process so there is no separate 40
days we have to wake wait it's a
parallel process both will run parallely
so our application for lower TDS will
run parallely with the application for
loan disbursement so before the loan
disbursement comes our application for
lower TDS will come we'll hand over to
you it is a online certificate you have
to send it to buyer buyer has to send it
to their bank and must the bank get the
lower TDS they will just retain that
much amount not 23 amount they will
attend Suppose there is a lower TV so it
is five percent so they will only retain
five percent the balance 75 percent they
will pay to you directly in your nro
account and five percent they will pay
to buyer now buyer will file a tedious
return using his 10 number and the five
lakh rupees will be deposited in your
income tax account so like you have bank
account bank account same way you have
income tax account so that five lakh
rupees you can file an income tax return
next year and you can get a different of
that also so that way you can fulfill
the whole procedure without stucking
that 23 percent of your property value
okay so hope the whole process is very
much clear
right and I hope I also explain how the
lower tedious part works it is parallel
because most of time people are confused
like so 30 40 days first I have to wait
then 60 days I have to wait for loan
disbursement it is like more than four
months no it will run parallely only if
you plan early now somebody after a side
filing a say after signing a agreement
to sale can can they apply for lower TDS
yes they can apply for lower TDS but
that time the twenty percent or twenty
percent part which they have accepted
which is down payment they have accepted
they have to pay LTDs at the rate of 23
only on the balance part 80 part the
lower tedious part lower TDS application
will work rewarded certificate will work
and
so like 20 23 on the 20 of first amount
23 percent you have to pay and eighty
percent you can use the lower TDS amount
so always beneficial if you are planning
to sell your property start early okay
get in touch with us and get all those
things in place before you finalize a
buyer and then you can easily convince
that before you get your loan
disbursement ready I will get my lower
TDS so you don't have to bother about
that because most of time buyers are
very bothered that the processor will be
long sir let's pay 23 because they don't
have to pay 23 from their own pocket
they have to deduct your money and pay
so they are in very hurry because they
want to get the property position of
property but if you are due if you do
this work early then what you can you
can easily convince boss your bank is
going to take at least 50 to 60 days to
disburse me loan I am promising you that
before that I will give you the lower
TVs rate and after that you just dealt
the TDS or at the rate and I suppose you
are selling a property at loss then you
can get a zero tedious rate there you
don't have to pay any TDS you just have
to submit the TDS certificate to buyer
and buyer will give to bank and bank
will give the full disbursement in your
nro account so hope in this video I made
clear the whole procedure and if still
you have some questions query some
confusions you can put as a comment and
either me or my team will come back and
reply just to notice if this is going to
be personalized query we generally
charge some Consulting fees because we
cannot entertain uh queries where we
have to handle it like personally so
that's all in this video hope
all of your queries got resolved and
still if there is query of course you
can reach out to me reach out to my team
and I and my team will be very happy to
help you and answer all the queries and
make this whole procedure of selling
property in India very hassle-free
experience so that's all thank you
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