Selling property in India isn’t just about finding a buyer. It’s about ensuring the property sale legal process is complete, documented, and compliant. Missing even a single document can delay deals, reduce buyer confidence, or create disputes later.

If you’re a homeowner planning to sell, understanding the legal process helps you avoid surprises, reduce delays, and protect your interests.

Here’s a step-by-step guide to the legal process for property sale in India, and how Owne’s structured platform makes the process safer and faster.

Step 1: Verify Property Title

Title Deed: Confirms ownership. Must be clear, marketable, and in the seller’s name.
Encumbrance Certificate (EC): Shows the property is free from loans or legal dues. Obtainable from the sub-registrar’s office (13–30 years history).
Mutation Records: Municipal records reflecting the current owner.

Without clear title, buyers hesitate or negotiate discounts, delaying the sale deed registration later in the process.

Step 2: Clear Pending Dues

Before selling, ensure:
• Property tax is updated
• Society/apartment maintenance charges are cleared
• Utility bills (water, electricity, gas) are settled

Buyers usually request recent receipts before registration.

Step 3: Check RERA & Project Compliance

For flats/apartments in registered projects:
• Ensure the project has RERA registration
• Obtain Occupancy Certificate (OC) or Completion Certificate (CC)
• Avoid selling in disputed or non-compliant projects

Under the RERA Act, compliance is verified during the sale deed registration process.

Step 4: Agreement to Sell

This is the preliminary agreement between buyer and seller. It includes:
• Property details
• Agreed price
• Payment terms
• Possession timeline

It is executed on stamp paper, and earnest money is paid. It protects both parties and is enforceable in court.

Step 5: Sale Deed

The Sale Deed is the final ownership transfer document.
• Drafted on stamp paper
• Registered at the sub-registrar's office
• Buyer pays stamp duty (5–7%) + 1% registration charges
• Both parties (or PoA holders) must be present with ID

Once registered, the buyer becomes the legal owner.

Step 6: Handover & Possession

After the sale deed:
• Seller gives possession letter
• Keys are handed over
• Society NOC is provided (if applicable)
• Utility meters are transferred to buyer

Taxes & TDS on Sale

Resident Sellers:
• Short-Term Capital Gains (≤ 24 months): taxed per income slab
• Long-Term Capital Gains (> 24 months):
– 12.5% flat (no indexation)
– Or 20% with indexation
• Exemptions available under Sections 54, 54F, 54EC

NRI Sellers:
• Buyer must deduct TDS:
– 20% for LTCG
– Slab rate for STCG
• CA certification is required before repatriation

Common Mistakes Sellers Make

• Selling without clearing EC or property tax
• Missing OC/CC or RERA documentation
• Using informal, unregistered agreements
• Accepting cash payments above permitted limits

How Owne Simplifies the Legal Process

Owne reduces seller stress through:
• Tri-party registered agreements protecting all parties
• Pre-verified documentation (Title, EC, RERA, OC/CC)
• Assisted & faster sale deed registration via legal experts
• Fair market pricing without distress discounts
• 90-day guaranteed liquidity

Instead of worrying about missing paperwork or buyer delays, sellers get certainty and speed.

Case Study: Legal Roadblock in Traditional Sale

Raghav owned a flat in Bangalore worth ₹90 lakh.
Traditional Route:
• Found buyer in 5 months
• Deal stalled because OC was missing
• Buyer demanded ₹8 lakh discount

Owne Route:
• Documentation team secured OC + EC
• Seller received full payout in 90 days

Proper documentation + investor backing = no discount + faster sale deed registration.

FAQs

1. Who prepares the Sale Deed?
Usually drafted by the buyer’s lawyer but reviewed by both parties. Owne ensures all contracts are standardized and registered.

2. Who pays stamp duty and registration charges?
The buyer pays government charges. The seller only clears pending dues.

3. Can I sell property that still has a home loan?
Yes. The buyer or investor clears the outstanding loan directly with the bank; the balance is paid to the seller.

4. Do NRIs need to be physically present?
Not always. A Power of Attorney (PoA) can be executed abroad and attested at the Indian consulate.

5. How does Owne ensure safety?
All transactions are legally registered, compliant, and backed by investor liquidity.

6. What is the process of selling property in India?
Owne simplifies the process through verified documents, quick registration, and 90-day liquidity.

7. What documents are required to sell property?
Title Deed, EC, tax receipts, OC/CC, ID proofs, and society NOC (if applicable).

Conclusion

The legal process of selling property in India is document-heavy and time-consuming. Ensuring clear title, EC, RERA compliance, and proper agreements helps you avoid disputes and delays.

Owne streamlines the entire process with verified documentation, fair pricing, and guaranteed liquidity within 90 days.

If you're planning to sell, list your property with Owne and unlock your wealth safely, quickly, and without stress.