A plot is a piece of land that may be used for either residential or commercial purposes. In legal terms, it is essentially an immovable property asset. Everything in the twenty-first century may be purchased or sold online. With the epidemic, this has become much more widespread, and the e-commerce business is booming. Can the same be true for immovable assets? Get online legal advice to sell a plot!
The real estate market has been in trouble for a long time, but as savings accumulated for some in the post-pandemic world, the market is slowly reviving. The government’s infrastructure effort is undoubtedly aiding the recovery of real estate. People, on the other hand, have gotten more smart in their usage of e-commerce. As a result, whether they want to invest in an immovable asset like a block of land for business or even residential purposes, they begin their search online. You may simply cater to them if you are a prospective vendor. We’ll now look at how it works and how to sell the plot online.
The Process of selling a plot Online
If one wishes to sell a plot online, one can do one or more of the following:
- They can put up an advertisement on property websites.
- They can put a detailed advertisement on the post on their social media handles.
- They can hire a broking website to sell the plot online.
Then, the seller who wants to sell a plot, might start getting calls or messages about prospective buyers. After one establishes a legitimate connection with a prospective buyer(s), they can ask them to meet in person or visit the asset land in question, so that buyer may get a clear picture of the property (s)he wishes to buy. The next step involves some legal expert’s opinion and inputs which is reached at an agreement to sell the plot online. Later on, it gets evolved in a sale agreement which has to be registered with the registrar’s office of the district where the property is located. The deal is closed after consideration is duly received or an agreement is reached to make it available at a future date decided upon by a mutual consensus.
Transfer of Property
Property ownership can be transferred in two ways:
· Voluntary transfer- when the owner freely transfers the property by gifting or signing the will. It is referred to as voluntary transfer of immovable property during selling a plot.
· Involuntary transfer- This occurs when property is transferred without the owner’s explicit consent. It typically occurs as a result of divorce decisions, inability to pay property taxes, asset seizure in the event of financial default, and natural calamities.
The five methods for transferring and selling the plots lawfully in India are as follows:
· By inheritance or will through a will deed.
· Through allowing co-owners to lawfully transfer their property’s part to another co-owner.
· Through property settlement or division.
· By means of presents.
· By acquiring ownership of the property.
There are broadly five ways in which transfer of property can be executed in India as per the Transfer of Property Act:
1. Sale: A sale deed made at the time of selling a plot transfers property from one person to another during a transaction. The buyer pays a consideration to the person selling the plot. To register the sale deed, the buyer must pay stamp duty and registration fees. The one selling the plot must pay capital gains tax on the earnings made from the transaction.
2. Gift: A property owner has the option of gifting his or her property through a gift deed. Unlike a sale transaction, the sender of a gift receives no monetary compensation. To be legally binding, a gift deed must be registered after paying the necessary stamp duty and registration fee. Such deeds take effect the moment it is executed.
3. Will: An absolute owner of property has the right to leave his or her property in a will. While it is not required to register a will, it is preferable to do so in order to give it legal sanction. A will, unlike a gift deed, takes effect upon the death of the will-maker. A person can modify their will as many times as they choose during their lifetime. The person who receives the property through a will is not required to pay any taxes.
4. Partition: A partition deed can be used to transfer a jointly-owned property among the participants. Following the separation of the property by a partition deed, each member becomes the independent owner of his or her half of the property. A partition deed must be recorded, and stamp duty and registration charges must be paid. However, property split is not subject to capital gains tax.
5. Relinquishment: While selling a plot which is jointly-held, it can be transferred by signing a relinquishment deed and giving up the claim to the property. When a property owner dies without leaving a will and the legal heirs elect to give up their right to the property in favour of a co-owner, a relinquishment deed is executed. However, only inherited properties can have their rights transferred by a relinquishment document. For legal validity, a relinquishment deed must be recorded
Certain papers/documents are necessary at the time of plot registration for selling the plot, including:
- Identification documents or an ID is required.
- Both parties’ passport pictures
- The sale agreement.
- If one of the parties is unable to be physically present at the moment of registration, a power of attorney may be used.
- If the party is a corporation, a copy of the corporation’s board resolution, as well as a power of attorney, are required.
- Property identification card
- Stamp duty and registration cost received.
Along with all of these papers, you must send one original copy of the deed and two sets of photocopies to the sub-registrar office. If you are unable to provide all of these papers at the time of registration, you have four months from the date of execution to do so.
The demand for plot sites has risen dramatically. Many individuals nowadays would rather have a customised residence to meet their new typical expectations than invest in a pre-built construction. Because of the increase in demand and value of residential land, now is the best moment for landowners who have been waiting for their assets to appreciate to reap substantial rewards.
However, when landowners sell the plots, careful preparation and study are required to execute a profitable purchase. There are various factors to consider when selling your plots online, ranging from pricing to remaining current with market trends. Even if the market is booming, if you do not strategize and prepare well, you may wind yourself incurring significant losses.