Living in your hometown or country is a blessing for many people. They are familiar with almost everything, and they have their roots there too. But situations can arise where you have to move abroad, whether it’s for a job opportunity or something else. And you may look for answers to should I move out of India and how to move out of India. There are many things that need to be done before you can pack your bags and head to the airport, like selling your house, for starters. This can be intimidating for a lot of people. So, if you are in India and want to sell a house in India for moving abroad, here are some very important things you should know.
Identify your house type
Understating your house type will let you set the right price for your house when you want to sell property in India. Below are the types of houses in India:
1. Flats or Apartments
Usually found in big cities, apartments are inside a residential unit (a building). Mostly, apartments are of one storey, but they can be multiple stories as well. Other types of apartments are penthouses, basement suites, studio rooms, etc. They are the easiest to sell in a big city if you want to sell house in India.
They are individual houses that are versatile. They can be one-storey or multiple stories. Their square footage could vary drastically as well. You will see a garden and porch in bungalows as well, other than rooms, kitchens, and bathrooms.
These houses are big and extravagant, best known as upper-class statehouses.
Farmhouses are also called second houses that are mostly away from the city. They are mostly close to nature in the greenery. They can be considered as villas outside of the city.
5. Eco-friendly houses
They are independent houses that use sustainable sources of materials and energy. Their style can vary from traditional to modern.
The general process of house selling
After figuring out how to move out of India, here are some general things and information that you will find essential if you want to sell property in India for good.
1. Sale Under Indian Law
From the Indian property act of 1882, a sale is defined as the act of ownership in exchange for a paid and definite price. There are two ways by which a sale can be made, and it depends on the price. One is made through Registered Instrument only if the price of the immovable property is Rs. 100 or more. The second way through which sale is made is through Delivery of Possession, which is made when the price of the immovable property is less than Rs. 100.
2. The Involved Parties
The parties or people involved from both sides are:
- The transferor
- The transferee
The transferor is basically the seller of the property, and they are putting up advertisements for their house or apartment in the market, looking for serious and potential buyers. In order to be a transferor legally, you need to be qualified for it. You need to have a clean record and clear reasons why you want to sell property in India. Basically, the agents are looking for any signs of malice, so you need to clear their doubts.
On the other hand, the transferee is the person who is willing to buy the property from the transferor at a price mentioned by the seller, with some negotiations. For being a transferee, you also need to have enough financial proof to show the legal teams and banks whether you are able to buy a certain property or not. For both the transferor and the transferee, you need to be well over the age of 18 to 20, as minors are not eligible to have their names on the sale deed and other important documents as either the transferor or transferee.
3. Contract For Sale
The contract of sale is a very important document for both parties because this is what delivers the possession power from the seller to the buyer by legal means. A sale contract involves the terms and conditions set between the two parties, and these agreements have to do with selling the property. It also has to mention the designated price of the property, which the buyer is willing to give to the seller.
4. Duties And Rights Of The Seller:
It is the right of the seller:
- To cash and pocket all the rents before the sale is officially made.
The duties of the seller are:
- To produce and deliver all necessary documents before and after the sale is made to the transferee.
- To put all of the defects, either physical or other, of the property in front of the buyer before officially signing the deed.
- To pay all kinds of government taxes until the official sale is made and the possession is handed over to the buyer.
5. Rights And Duties Of The Buyer
The buyer is obligated:
- To pay the promised price of the property to the seller by the date mentioned on the contract.
- To disclose all types of facts that could increase the price of the property.
The buyer has the right:
- To quote a price as they please. This will lead to negotiations.
- To add any sort of financial benefit to the property after the sale is made.
- To request possession immediately after payment of the property.
- To see all documents of the house before signing the sale contract.
6. Documents Needed For Property Selling
Here is a list of documents you need to sell a house in India.
- Letter of allotment (gives possession of the property from the society to the seller)
- Sale deed (initial sale agreement between the transferor and transferee)
- Sanctioned plan (it gives the coverage area and land size of the property)
- Society documents (if your house is part of a residential society)
- Encumbrance certification (to ensure the property is free from any sort of legal issues or charges)
- Sale agreement (final sale agreement between the two parties, with the financial statement and other terms and conditions)
- Title of the property and possession
What To Do With The Money Of The House?
Now that you have gone through the process of how to sell property in India, if that was the only option, and you have the money in hand, it’s now the time to decide what to do with that money.
If you’re looking for how to move out of India, have an international banking account made so that you can transfer the money in that account and use it for other things when you move abroad, like getting a place to live and paying for necessities like rent and other commodities.
You can save the money and have it sit in your Indian bank account and let it grow over time. This is an option for those people who have their living already sorted out abroad, and they don’t need the extra money. It can easily go into savings for marriages of your children, education, and more.
What If You Don’t Want To Sell Your House?
Sometimes people don’t want to sell a house in India even if they are moving out of the country. Either it’s a very time-consuming process, and they don’t have a lot of time to make all of these legal decisions, or they simply don’t want to give away a valuable asset. If you feel the same way, then here are some things that you can consider.
1. Leasing The Property
If you don’t want to go for the renting option and also don’t want to sell property in India, you can consider leasing your property. It gives you the best of both worlds, and you will also bag more money since leasing money is a lot higher than rent money. If you are worried about how the tenants will take care of the house, there is no need to worry. The tenants in leased houses are responsible for repairs and any other damage inflicted on the property during their stay, so you will always be in safe waters.
2. Renting The Property
The easiest thing to do, if you don’t want to sell your house and want to get some extra money out of it too, is to rent the place. It is useful if you are not sure and still wondering should I move out of India. The most challenging part of renting is finding good tenants and responsible ones. If you are someone who rents houses, then this will be a piece of cake for you, but for someone who is renting their home for the first time is up for a challenge.
You need to find a small family with responsible members who hold accountability for their actions. This will put you in a safe place.
3. Give Your Family A Place To Stay
The best thing you can do, if you are moving abroad and your house or apartment will be empty, is to give your family a place to stay. If you have parents who don’t live with you and you are moving abroad, then you can have your parents stay at the house or apartment. They will have a nice place to stay, and they will also look after your house better than any other tenant.
Try to look for people in your family who will willingly stay at your place, especially if you have no plans to sell a house in India, because, let’s be real, buying a house is just as hard as selling one.
4. Short-Term Rentals
Short-term rentals are different from normal rentals because they are more like hotels. You can advertise your house as a live-in bed and breakfast for travellers who come to visit your area. You are in for a treat, especially if your house is located in a tourist-rich area. People will need someplace to stay, and hotels are not cheap. So, this will be the best option for travellers and for you to bag some cash too.
There you have it! These options are great because you will be settling everything in your hometown and moving to the US with peace of mind. Selling your house might be the only option, especially when you don’t have someone close that you can trust with the house. Make sure to follow the rules to sell houses in India quickly.
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