Land buying is an investment. With no depreciation, it doubles its value in a year. This is what makes real estate an ongoing venture.

A well known quote says that the only bad time to buy a property is later. If that's the case, the activities of buying and selling properties are happening every second in a day.

Apart from property buying and selling, real estate involves other phases like renting out or leasing out properties. As this has become a highly growing industry, there are separate niches to deal with the real estate of various properties.

Here we are going to focus on the sale of school properties and important points around buying/selling of school properties.

Why School properties?

School properties are excellent investment options for those who enter the real estate investing sector. Schools are inevitable institutions of any society. So, the demand for schools always prevails. The lands for school purposes have high appreciation rates that attract investors towards them.

Effective online portals assist in dealing with school properties including sale of land for school purposes, running schools for sale, operational schools for sale and so on. Exclusive websites for school properties like Schoolprop.com do everything in terms of finding and managing properties for school purposes. All we need is - register with the website and get the comprehensive listing of all the school real estate requirements and demands.

Here’s the step by step process involved in property dealings-

Sale Agreement - It is crucial that the buyer & seller agree to the terms, conditions, and timelines of the sale without leaving any loose ends so that no disputes arise later. Both the parties’ concerns have to be addressed judiciously. That is exactly why the sale agreement is drafted and executed.

Document verification - It is not at all advisable to initiate the transactions unless the documents are verified. Here is the list of few important documents to verify:

• Mother deed
• Sale deed
• Encumbrance certificate (EC)
• Khata certificate & extract
• Latest tax paid receipt
• RTC Extract
• Building approval plan
• No objection certificate from bank if property bought on loan (NOC)
• No objection certificate from association/ society office / Maintenance office (NOC) 10. Latest utility bills - electricity and water
• Aadhar of seller
• General Power of Attorney / Power of attorney/ Special power of attorney, if applicable.

TDS - W.e.f. June 1st, 2013, when a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50 lakhs, he has to deduct TDS when he pays the seller. This has been laid out in Section 194-IA of the Income Tax Act.

The requirements of this section are

• The buyer has to deduct TDS at 1% of the total sale consideration.
• No TDS is deducted if sale consideration is less than Rs 50 lakhs
• Tax is to be paid on the entire sale amount.
• Pan card of the buyer and seller is mandatory
• TDS is deducted at the time of payment or at the time of giving credit to the seller, whichever is earlier.
• Thus for paying TDS, the seller is required to obtain Form 16B and the buyer is required to obtain Form 26QB.

Stamp duty & registration charges - The stamp duty, registration charges, and cess are based on consideration value or market value. whichever is higher. The intention of market value is to avoid underpayment of stamp duty and registration charges.

The drafting & execution of Sale Deed - The sale deed is one of the most valuable legal documents that contains details of transfer of property ownership from a seller to a buyer. It is executed at the time of actual transfer of property ownership at a sub-registrar’s office. This document needs to be registered mandatorily and is governed by the Registration Act.

After-sale deed registration - Once the sale is executed, it is time to decide the respective sub-register office to register the property. On the day of property registration, it is mandatory to carry the following documents to the sub-register office:

• Printed sale deed
• Executed sale agreement along with its stamp duty paid receipt
• Current year tax paid receipt
• Current year’s khata certificate and khata extract
• Aadhar (Linking of mobile number is mandatory for digital signing.

The buyer and seller should sign all the pages of the sale deed. Two witnesses have to sign the witness section.

Schoolprop.com is a unified platform exclusively for the dealing of school properties. If you are looking for a reliable platform to buy/sell school properties, then school prop is the place for you.