Selling Property in Bangalore from the United States: A Step-by-Step Guide
If you are residing in the United States and planning to sell your flat in Bangalore, the process can seem overwhelming, especially when it comes to granting Power of Attorney (POA) to a family member. This guide simplifies the process into five key steps to ensure a smooth transaction.
Five-Step Process to Sell Property in Bangalore from the United States
- Title Documents
- Marketing
- Power of Attorney
- Sale Agreement
- Sale Deed
1. Title Documents
Before proceeding with the sale, ensure you have the following essential documents:
- Registered Deed (Sale Deed, Gift Deed, Partition Deed, etc.)
- Tax Paid Receipt
- eKhata
- PAN Card
2. Marketing Your Property
Finding the right buyer is often the most challenging part of selling a property. Here’s how you can generate leads:
- List your property on reputed real estate platforms like 99acres, CommonFloor, and MagicBricks.
- On average, it may take 3–6 months to find a buyer.
- Since you are in the U.S., handling buyer inquiries and property visits can be difficult due to time zone differences.
- Consider appointing a trusted family member or a local real estate agent to coordinate on your behalf.
3. Granting Power of Attorney (POA)
Since you are not physically present in India, you will need to authorize a representative through a Power of Attorney (POA). Here’s how:
Who Can Be Granted POA?
You can grant POA to a blood relative, which includes:
- Father
- Mother
- Brother
- Sister
- Spouse
- Children
Note: In-laws, cousins, uncles, and aunts are not considered blood relatives.
Stamp Duty for POA
- If granted to a blood relative: Stamp duty is ₹500.
- If granted to a non-blood relative: Stamp duty is 5% of the property’s selling price.
Procedure to Create POA in the United States
- Draft the POA on a Word document.
- Print the document on A4-sized paper.
- Attach a passport-sized photo on the last page.
- Sign the POA in front of a Notary Public in the U.S. with two witnesses.
- Self-attest a copy of your passport.
- Courier the POA and passport copy to your representative in Bangalore.
- Your representative must adjudicate the POA at the District Registrar’s Office in Bangalore.
4. Sale Agreement
The Sale Agreement is a legally binding document that outlines the terms and conditions of the sale. The buyer typically incurs the cost of executing this agreement.
Key Clauses to Include in the Sale Agreement:
- Date and place of execution.
- Buyer and seller details (name, age, address).
- Property description (schedule of property).
- Payment terms and mode of payment.
- Tentative date for Sale Deed registration.
- Penalty clauses in case of cancellation.
Industry Practice: Sellers generally demand 20% of the selling price at the time of signing the Sale Agreement, preferably via cheque or online transfer.
5. Sale Deed and Final Transfer
The Sale Deed is the final legal document that transfers ownership of the property to the buyer. The buyer incurs the cost of stamp duty, registration fees, and advocate fees.
Key Points to Remember:
- As a seller, you must bring all original title documents to the registrar’s office.
- If the buyer is self-financing, collect the full payment before or at the time of registration.
- If the buyer is opting for a home loan, ensure the bank issues the final settlement cheque in your name at the time of registration.
- Upon receiving full payment, hand over the original title documents and property keys to the buyer.
Need Assistance?
We provide end-to-end seller assistance, including Power of Attorney execution.
For professional support, please contact us:
- Email: pgnproperties@gmail.com
- WhatsApp: +91-9742479020
Thank you for reading!