Things To Consider Before Selling An Under-Construction Home

Under-Construction Home : Purchasing a property during the project’s launch in order to profit later by selling the unit has become an appealing proposition for many real estate investors. However, due to the involvement of multiple parties, transferring or selling an under-construction property can be difficult.

The transfer of an under-construction property is contingent on a number of factors, including the project’s construction status, the buyer’s home loan profile, the builder’s reputation, payment methods, and transfer charges. However, the complexities of selling an under-construction property are mostly unknown to the seller. When the occupancy certificate is issued but the property is not yet registered, the situation becomes even more complicated. Thus, navimumbaihouses provides a detailed guide to help with the process of selling an under-construction property.

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Transfer of under-construction properties

A tri-party transfer deed is traditionally use to transfer an under-construction property. In this case, the seller and buyer sign the deed, while the builder serves as the confirming party.

A new form of ownership transfer, namely bi-party transfer of under-construction properties, is gaining popularity in Delhi, Maharashtra, Uttar Pradesh, and Haryana. The bi-party transfer procedure is as follows:


  • The seller finds a buyer and then contacts the builder.
  • The builder issues a No Objection Certificate (NOC), which states that he has no objections to the transfer of ownership to the new buyer.
  • Seller and buyer sign a sale agreement or transfer deed based on the issued NOC.
  • The seller gives the builder a copy of the sale agreement.
  • The builder enters new ownership information into his records.



Quick selling tips


Under-Construction Home : Choose the appropriate time.


If you sell a real estate asset for a profit, you must pay capital gains tax on the profit. Short-term capital gains typically attract a higher tax liability under the current regime because they are added to the seller’s income, whereas long-term capital gains are tax at a flat 20% rate. The government, on the other hand, provides certain provisions to reduce one’s liability under the long-term capital gains tax. Consult with your agent to determine the best time of year for tax savings or profit-making. If property prices in your area are expected to rise, you should not mind paying the higher tax. However, given the market’s uncertainty, experts advise against it.


Set the appropriate price.

It is always a good idea to check the property rates of resale properties in the area before listing the property price. Avoid relying on the builder’s new home price chart. A builder may set a high unit price in order to portray his venture as one with a higher yield. To get a better idea, try to evaluate the property from the buyer’s point of view. You can always seek the assistance of an agent to negotiate a price.


Under-Construction Home : Examine all available options.

Selling an under-construction property should be a well-thought-out and well-informed decision. Determine the following in order to select a buyer with a strong financial background who will pay the entire amount:

  • Buyer’s money readily available, or will he have to liquidate assets to get it?
  • Is the buyer planning on taking out a loan? Is he already in possession of the sanction letter, if so?

You can choose the right person by comparing potential buyers on the points mentioned above.


Under-Construction Home : Hire a mortgage consultant.

In the most basic scenario, three parties are involve in the under-construction property transfer process. It becomes more complicated when both the buyer and seller intend to take out a loan. As a result, the transaction involves five parties: the seller, the buyer, the builder, the seller’s lender, and the buyer’s lender. Because the risk of having two loans on the same property can be complicated, it is best to hire a mortgage adviser to ensure a smooth transaction.

Earning money through price appreciation is a strategy that most real estate investors use. However, a thorough understanding of the complex process is require to avoid mistakes in the future.





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