What the seller has to disclose before selling the property?

If you want to sell your house, you have to follow certain things.
You have to fix the price of the house.
You have to disclose the buyer whether any mortgage, debts or liens exists before sale.
If you want to include things such as the furniture & fittings, etc., along with the house, you should mention clearly in the Sale deed about the things you decided to sell.
If you want to make any repairs to the building, you have to state that you undertake to do such repair before sale.

What a buyer has to verify before buying a property?

If you are a buyer you have to verify the following:
Whether the seller owes any debts or any other liens against the property?
Whether any development plans by the government will affect the property?
Whether you will face any other problems like nuisance in the future?

If a buyer makes an offer to buy a house from the seller, and if the offer is accepted by the seller, then the buyer has to buy the house. But the buyer can withdraw the offer before it is accepted by the seller. If a buyer comes to know that the seller has not disclosed anything as to the debts or lien or defrauds, the buyer can withdraw an offer even if the offer is accepted by the seller.

If the seller has accepted to sell his house, and suddenly changes his mind not to sell the house to the buyer, then the buyer can sue against the seller to perform his part of agreement or he can claim as compensation from the seller.

Sale agreement or Sale contract

If you want to buy a property and the seller agrees to sell his property, you have to put an agreement with the seller or an agreement for sale. Once the seller accepts the offer of the buyer, it is advisable to put an agreement for sale because neither you nor the seller can withdraw from your standpoint. The sale agreement/ contract must state the following:

• The name and address of both the parties. The agreement must include the clause, which enables the buyer to inspect the property.
• Description of the property.
• What is the initial amount paid by the buyer?
• What is the sale price of the property?
• When the buyer shall pay the remaining amount?
• Whether the seller agrees to make any repair work to the property?
• When does the sale come into effect?
• What will happen if the inspection reveals serious problems?
• What will happen if the buyer cannot pay the entire amount within the stipulated period?
• What will happen if the buyer discovers any serious problems with the property?

Sale Deed & Closing