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Why do people sell their houses? After all, isn’t a house meant for one’s permanent living? It may look as simple as that, but if we go deep into the matter in the broader perspective of fast changing socio-economic environs, the issue can be very complicated. In the good old days of joint family system, the ancestral house always came to one’s rescue to give shelter — and shelter was all that people mainly wanted. The position changed substantially when the younger generations branched out.

The issues involved may include:

*Inadequacy of space in the present house.

*Increase in cost of plot, leading to securing a handsome price in case of sale of the old house, which can be invested in buying another property in a less costly and less congested locality in the same place or in another town, by using a portion of the sale proceeds, the balance being kept for other exigencies.

*Lack of lung space because of rapid growth around the present place of stay.

*Possibility of building a multi-storey apartment / business complex for better monetary benefits.

* Wish to have a less stressful living

What is required to be done to sell your present house faster and at a reasonable price? Full knowledge of the market conditions such as whether the market is generally on an upswing, deals going on in the area, price at which the recent deals have been struck, good and reliable real estate agents in your locality, developers and promoters of good standing and reputation around, regulations governing sale-related matters applicable to the house in question, stamp duty and registration charges, tax implications etc.

If your house is a little old, say 20-25 years, the house may need some repair / renovation, which may be carried out before you spill the news of your intention to sell it. The repair should include essentially the bathroom, closet and kitchen. A touch-up of painted / varnished surfaces would add a well-caring look and aesthetic value. Similarly, clean the house and open space, if any, to give a good impression to the prospective buyer.

Some people abhor the idea of middlemen in selling houses/ furniture/car. This attitude may not always be to your advantage. Paying brokerage or commission alone should not deter you from approaching a reliable agent. The agent, with years of experience, would be in a better position to execute a clean deal, as otherwise you will have to haggle with many prospective buyers, some of whom may not be genuine.

Essentials of handling the sale proceeds of your house are many and vary from deal to deal. Very important legal and taxation issues are documents to be executed and exchanged, absolving the seller from future tax payments, capital gains-related investments and deposits, accounting of full value received, payment of stamp duty and registration charges as per current laws etc. Similarly, if the deal is with a builder for raising apartments, the agreement involving cost of your site, total cost of the project, the number of apartments you will be given, the cash you will get need critical study and drafting so that you receive a satisfactory deal and the wording of the agreement protects your interests.

Consult legal practitioners of property matters and tax consultants before entering into an agreement and in any case before closing the deal. In Karnataka, and in particular in cities like Bangalore, the latest guidance value and house tax proposals are vital to property deals. Beware of loopholes. Don’t rush into apparently harmless transactions, giving room for future litigations.

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