Tenancy in Common (TIC) in Indian Real Estate:

Tenancy in Common (TIC) in Indian Real Estate: Tenancy in Common (TIC) is a legal arrangement in which two or more parties jointly own a piece of real property, such as a building or a parcel of land. This structure allows each party to hold a distinct share of the property, adding flexibility and shared responsibility to property ownership. A significant feature of a TIC is that any party can sell their share of the property independently and also reserve the right to pass on their share to their heirs, making it an attractive option for estate planning. Prevalence of Tenancy in Common in India: TIC arrangements are most prevalent in urban areas of India, especially in bustling cities like Mumbai, Delhi, Bengaluru, and Chennai. In these densely populated regions, where real estate prices can be prohibitive, TIC enables multiple investors to co-own properties, which makes it easier to enter the property market together. This arrangement is commonly utilized in residential complexes and...
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What should be the Payment structure when selling a property in India

 What should be the Payment structure when selling a property in India

When selling a property in India, the payment structure typically involves various components and steps. Here is a common payment structure to consider:

 

1. **Token Amount:** Initially, the buyer usually pays a token amount to the seller to express their intent to purchase the property. This amount is a sign of goodwill and is often negotiable. It's not a substantial part of the total property price but demonstrates the buyer's seriousness.

 

2. **Advance Payment:** After the token amount, the buyer may provide an advance payment, which is typically a certain percentage of the total property price. This is usually paid within a specific timeframe, as agreed upon in the sale agreement.

 

3. **Sale Agreement:** Once the token amount and advance payment are made, both parties enter into a sale agreement. This agreement outlines the terms and conditions of the sale, including the final sale price, the timeline for the sale, and any other specific conditions.

 

4. **Home Loan Documentation:** If the buyer is availing a home loan to finance the purchase, they will provide the necessary documentation to the lender. The lender will then disburse the loan amount directly to the seller or as per the agreed terms.

 

5. **Property Transfer and Registration:** After the sale agreement is signed and all financial arrangements are in order, the property's legal transfer and registration take place. This involves the payment of stamp duty and registration charges. The buyer must pay these charges, which vary from state to state.

 

6. **Final Payment:** The final payment, which includes the remaining amount after deducting the token amount and advance payment, is made by the buyer to the seller. This payment is typically made through a bank transfer or demand draft.

 

7. **Possession Handover:** Once the full payment is received, the seller hands over possession of the property to the buyer. This involves the physical transfer of keys and documents.

 

8. **No Objection Certificate (NOC):** If applicable, the seller should obtain an NOC from the housing society or association, confirming that there are no outstanding dues or disputes related to the property.

 

9. **Completion of Legal Formalities:** After the possession handover, both parties should complete any pending legal formalities, such as updating the property title and records with the local authorities.

 

It's important to note that the payment structure and process may vary based on the specific agreement between the buyer and seller, as well as the legal requirements in the state or city where the property is located. Consulting with a legal expert or real estate advisor is advisable to ensure a smooth and legally compliant property sale in India. Additionally, it's essential to keep records of all transactions and agreements for future reference.

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