One of the priciest and most time-consuming things you will do is purchase and sell real estate. As Maintaining accurate records and paperwork of real estate transactions becomes essential given the significant financial risks involved and the legal procedures that must be followed before, during, and even after the purchase. Have a look at managing property documents suggested by Mr. Anurag Goel, the Director of Operations of Goel Ganga Developments.
Aadhaar and PAN cards, bank statements proving money received and sent, TDS certificates (Form 16B), copies of the sales deed (copy after registration) and agreement to sell, copies of historical papers (buy/sell deed), and personal documents are among these documents.
On the other hand, after purchasing and/or selling real estate, how long should the records and paperwork be kept up to date?
- In accordance with Income Tax regulations, the Government may request that you provide the documentation pertaining to the acquisition or sale of real estate up to seven years after the date of the transaction.
- Nonetheless, following the end of the year in which the property has been transacted between the buyer and the sale, experts advise that the buyer and seller save and retain the paperwork for at least eight years. Adding a year makes eventualities easier to handle.
- When buying real estate, it is advised that all paperwork be kept up to date for the duration of your ownership.
- Above all, exercise caution if you rely on the banks to keep track of bank documents and additional information related to your real estate purchase! It is possible that the bank may change its software and all of your records will be erased. For your own protection and assurance, therefore, do not rely on anyone else. Maintain hard or soft offices of all bank records.
- As soon as the real estate property is purchased, draft a “Will.” The will is a legal document that outlines the testator’s precise intentions for the person’s care and wealth distribution after death. If there is no formal paperwork, it becomes extremely difficult to claim the deceased person’s property in the event of the registered property owner’s death. The entire property will be litigated, leaving the legal owners without a place to live for an extended period of time. If there are any legitimate successors to the property, they should be named in the will without any room for doubt.
- As soon as the property is purchased, make changes to the government documents. This covers the gas connections, water records, power invoices and more. Any active landline, internet, and mobile numbers associated with that specific address can be transferred or disconnected.
An effective real estate deal is contingent upon meticulous record keeping. There are a lot of situations in real estate transactions when things might go wrong despite using the finest care, measures, and approaches. In other words, to the best of their abilities, all homeowners should make sure they keep all relevant transactional documentation in its original, duplicate, and digital versions.
