Why did we write this?
At Ivy, we understand what a challenging process selling your apartment is. And we want to do everything within our power to make it simpler for you. This document is our attempt at answering every question you may have about transacting with Ivy Homes. Let us take you through Suresh’s journey as he learns about Ivy Homes and goes through the process of selling his home to Ivy. Suresh has many things on his mind that he asks Ivy. And we at Ivy, help Suresh with all his queries. Say hello, to Suresh
Seller FAQs
Ivy: We’re a bunch of engineers that have gotten together to streamline the process of buying and selling homes in Bangalore. Our core team comprises folks from IIT Kharagpur, IIT Kanpur and the IIMs. We are Data Scientists at heart. We’ve figured out how to get the capital and sales chops in place to make the whole experience feel like a breeze.
We solve a serious problem for our sellers with a smile, quietly taking over the complete risk of selling the home. The 100+ families we've helped over the past couple of years are a testament to the ease of selling and buying we enable for locals, remote sellers and NRIs alike.
We solve a serious problem for our sellers with a smile, quietly taking over the complete risk of selling the home. The 100+ families we've helped over the past couple of years are a testament to the ease of selling and buying we enable for locals, remote sellers and NRIs alike.
Ivy: This simply boils down to the time value of money. With Ivy Homes, you sell today. That means no wait time, no guesswork, and no scouting for buyers. You leave that to us. Did you know the average homeowner takes 9 months to sell in Bangalore?! That snaps to zero with Ivy Homes. No wait time. Selling a house that 'may' fetch a maximum of 1 Cr. in 9 months, TODAY at 95 lacs guaranteed for instance, simply makes sense and is a profitable proposition for every rational seller. That too, as-is, where-is, no questions asked.
Forget about the rupee value, the real gain is in not dealing with a bunch of property agents, constantly coordinating to facilitate visits for prospective buyers, and dealing with the heartburn of lowball offers to buy your beloved home. Ivy Homes is the only buyer that will make an immediate, fair, data-backed offer to buy, with a more than substantial down payment today. All it takes is a single, 30-minute inspection by our team of experts and you have a credible offer to accept or reject. Selling to Ivy is that simple.
In buying and selling like we do, the transaction is pure science. We optimize to complete the sale as early as possible. This means we know exactly what value to add to your home to present it in its most beautiful form to the right buyer.
Forget about the rupee value, the real gain is in not dealing with a bunch of property agents, constantly coordinating to facilitate visits for prospective buyers, and dealing with the heartburn of lowball offers to buy your beloved home. Ivy Homes is the only buyer that will make an immediate, fair, data-backed offer to buy, with a more than substantial down payment today. All it takes is a single, 30-minute inspection by our team of experts and you have a credible offer to accept or reject. Selling to Ivy is that simple.
In buying and selling like we do, the transaction is pure science. We optimize to complete the sale as early as possible. This means we know exactly what value to add to your home to present it in its most beautiful form to the right buyer.
Ivy: With Ivy, you don't need to search through MagicBricks, 99Acres and NoBroker, desperately trying to figure out what is a fair price you should charge a buyer, second-guessing yourself with every broker's opinion, navigating surprisingly lower offers you keep hearing from prospective purchasers, not to mention unwarranted criticism of your beloved home.
We bring every transaction on record in Bangalore under one roof and scour through individual deals that have happened to figure out the impact of location, floor rise, Vastu, car parks, light, ventilation, floor plans, liquidity in the market, the competitive sales landscape and the demand and supply economics. Our proprietary Data Science model then consumes the parameters we capture pertaining to the vital statistics of your home, not to mention its extant condition upon a detailed inspection to arrive at a fair price for its purchase. No bargaining, no haggling over minor details.
We bring every transaction on record in Bangalore under one roof and scour through individual deals that have happened to figure out the impact of location, floor rise, Vastu, car parks, light, ventilation, floor plans, liquidity in the market, the competitive sales landscape and the demand and supply economics. Our proprietary Data Science model then consumes the parameters we capture pertaining to the vital statistics of your home, not to mention its extant condition upon a detailed inspection to arrive at a fair price for its purchase. No bargaining, no haggling over minor details.
Ivy: We like to think of ourselves as closet CID investigators! Just as the police investigate every crime by looking for clues as to the perpetrators and crack cases day after day, so also every transaction tarnished by this component leaves its telltale signs.
We leverage the power of machine learning and artificial intelligence to covertly flag these transactions and eliminate them from our consideration universe. A clean dataset then forms the base for our data modelling, which helps us have confidence levels of 98%+ in our price modelling algorithm. That’s how we deliver peace of mind to folks that sell to us, knowing they’re getting a bird in the hand today, versus rosy promises that the market doesn’t honour later!
We leverage the power of machine learning and artificial intelligence to covertly flag these transactions and eliminate them from our consideration universe. A clean dataset then forms the base for our data modelling, which helps us have confidence levels of 98%+ in our price modelling algorithm. That’s how we deliver peace of mind to folks that sell to us, knowing they’re getting a bird in the hand today, versus rosy promises that the market doesn’t honour later!
Ivy: Here we’re with you! Real estate is hardly easy to navigate, without a professional hand to guide you through the process. That’s why we actually employ our Legal Counsel in-house, so you have a friend and confidante to speak to and clear every query straight off the bat.
We have identified every single nuance of the documentation it takes to easily navigate a sale, and our team guides you through every document necessary to be furnished to ensure smooth title diligence. The good thing is, having run through a bunch of transactions, our paperwork is super standardized, meaning it pretty much takes just a cursory review from your end before you sign on the dotted line as all our happy buyers and sellers have done over the last 100+ transactions. As simple as that!
We have identified every single nuance of the documentation it takes to easily navigate a sale, and our team guides you through every document necessary to be furnished to ensure smooth title diligence. The good thing is, having run through a bunch of transactions, our paperwork is super standardized, meaning it pretty much takes just a cursory review from your end before you sign on the dotted line as all our happy buyers and sellers have done over the last 100+ transactions. As simple as that!
Ivy: Of course, we understand this. Not all sellers are completely clued in on what documentation it takes to close a transaction - especially if it is their first transaction. Navigating Karnataka law isn’t very simple, especially when it comes to aspects like Khata, property tax, maintenance payments and the like.
The good news is, you’re in safe hands. If we find lacunae in the documentation, our team of legal experts will further handhold you on mitigating actions you need to take to clear your title to ensure a smooth sale. What’s more, if there is interfacing you need to do with your apartment association, the BBMP authorities or other entities, we connect you with relevant consultants and facilitate the process end to end. You bear the minimal expenses (we obviously get you great deals from the consultants, because we give them volumes, unlike retail sellers!) and we are good to go.
The good news is, you’re in safe hands. If we find lacunae in the documentation, our team of legal experts will further handhold you on mitigating actions you need to take to clear your title to ensure a smooth sale. What’s more, if there is interfacing you need to do with your apartment association, the BBMP authorities or other entities, we connect you with relevant consultants and facilitate the process end to end. You bear the minimal expenses (we obviously get you great deals from the consultants, because we give them volumes, unlike retail sellers!) and we are good to go.
Ivy: Here’s where the good news begins. No brokerage. No hidden charges. One simple rate we offer for your home. What you see is what you get!
If a broker introduced you to us, all you do is pay them your agreed brokerage, and there ends the matter. Our typical transaction structure is slightly nuanced, though, and different from the standard way you sell. But we’ll be transparent and explain exactly why and how.
If a broker introduced you to us, all you do is pay them your agreed brokerage, and there ends the matter. Our typical transaction structure is slightly nuanced, though, and different from the standard way you sell. But we’ll be transparent and explain exactly why and how.
Ivy:
Some preamble is due here. The government understands a sale - because every time you sell, the buyer pays stamp duty and registration fees. However, us buying expressly for the purpose of resale means two exchanges of hands (you to us, followed by us to the end purchaser), which would normally attract two times the duty and fees.
This would normally skew the finances such that you would realize less than optimum. But here’s where our legal wizards step in. We structure the transaction such that you realize the best value, while at the same time, following Karnataka law to the T!
Here’s how it works: Step 1: Registration of an Agreement to Sell
You come in as the Seller, and we (Ivy Proptech Private Limited i.e. IPPL) come in as the Purchaser. Through this definitive document, you give us 3 things:
What you don’t give us, though, is the more interesting bit. You don’t give us:
This is simply because either of these would mean attracting full stamp duty, which would defeat the entire purpose.
In exchange, we pay you a significant consideration upfront, solving your need for liquidity. We go as high as 80% of the agreed value of the property as an Advance Sale Consideration, thus putting you at ease!
Of course, this is payable to you via Demand Drafts, handed over at the time of Registration. The documents to the property and one set of keys to the vacant property get handed over to us at this stage for our safekeeping in order to facilitate the transaction going further, and we are good to go.
What’s more, going further from here, all payments become our responsibility, meaning maintenance payments as also electricity payments are handled entirely by us, meaning you’ve completely concluded the sale for all intents and purposes. Renovation and Onward Sale
We step in now to carry out the appropriate refurbishment and showcase your home in the best possible light. We quickly activate our network of Channel Partners, and align an end purchaser as swiftly as possible.
Once we’ve aligned an end purchaser for your home, we proceed to close things out with you through a Sale Deed, which ensures the transfer of title to the end purchaser and formally concludes the transaction for you.
Step 2: Registration of the Final Definitive Sale Deed
You come in as the Seller (remember, the legal title still sits with you). The end buyer we’ve aligned comes in as the Purchaser, and owing to the Agreement to Sell you signed with us in Step 1, we come in as the Confirming Party, to close the loop out.
You receive the Balance Sale Consideration aligned via Demand Drafts again. We hand over the original documents, and you hand over any keys to the property you retain - we hand our set over, thus closing the transaction in a clean, clear manner.
This would normally skew the finances such that you would realize less than optimum. But here’s where our legal wizards step in. We structure the transaction such that you realize the best value, while at the same time, following Karnataka law to the T!
Here’s how it works: Step 1: Registration of an Agreement to Sell
You come in as the Seller, and we (Ivy Proptech Private Limited i.e. IPPL) come in as the Purchaser. Through this definitive document, you give us 3 things:
- Rights to sell
- Rights to renovate
- Rights to access the property for the purposes of renovation and onward sale
What you don’t give us, though, is the more interesting bit. You don’t give us:
- Legal possession of the property
- Transfer of legal title to the property
This is simply because either of these would mean attracting full stamp duty, which would defeat the entire purpose.
In exchange, we pay you a significant consideration upfront, solving your need for liquidity. We go as high as 80% of the agreed value of the property as an Advance Sale Consideration, thus putting you at ease!
Of course, this is payable to you via Demand Drafts, handed over at the time of Registration. The documents to the property and one set of keys to the vacant property get handed over to us at this stage for our safekeeping in order to facilitate the transaction going further, and we are good to go.
What’s more, going further from here, all payments become our responsibility, meaning maintenance payments as also electricity payments are handled entirely by us, meaning you’ve completely concluded the sale for all intents and purposes. Renovation and Onward Sale
We step in now to carry out the appropriate refurbishment and showcase your home in the best possible light. We quickly activate our network of Channel Partners, and align an end purchaser as swiftly as possible.
Once we’ve aligned an end purchaser for your home, we proceed to close things out with you through a Sale Deed, which ensures the transfer of title to the end purchaser and formally concludes the transaction for you.
Step 2: Registration of the Final Definitive Sale Deed
You come in as the Seller (remember, the legal title still sits with you). The end buyer we’ve aligned comes in as the Purchaser, and owing to the Agreement to Sell you signed with us in Step 1, we come in as the Confirming Party, to close the loop out.
You receive the Balance Sale Consideration aligned via Demand Drafts again. We hand over the original documents, and you hand over any keys to the property you retain - we hand our set over, thus closing the transaction in a clean, clear manner.
Ivy: Again, a legitimate concern. If you look at it, what we really deliver is peace of mind with instant liquidity when you’re looking to sell. So we like going a step above and beyond to safeguard your interest in the transaction. This means we actually underwrite the purchase if we are not able to sell.
We basically pay you the balance consideration and take the property onto our books if we aren’t able to sell, with full title transfer to us. Transacting with us is therefore completely airtight and secure - a simple one-way street with no worries!
We basically pay you the balance consideration and take the property onto our books if we aren’t able to sell, with full title transfer to us. Transacting with us is therefore completely airtight and secure - a simple one-way street with no worries!
Ivy:
You’ll certainly understand that in putting this clause on paper, we are underwriting a risk that we’ll need to pay the ~ 7% stamp duty and registration fees we haven’t accounted for in our standard economics. We’re a business where, if things go to plan and we sell in 3-4 months, we typically make about 1.5-2% net of costs, to make this worth our time.
Normally, therefore, we would share the risk and charge you some part of it.
However, as a business, we like making things sweet for you. So what we do is, we write a 12-month timeline as an outer limit on paper, and underwrite this risk all by ourselves, for free! What's life without a little risk?!
Put simply, our terms are usually stated similar to this: 80% Advance Sale Consideration payable at the Registration of the Agreement to Sell. 20% Balance Sale Consideration payable at Sale Deed or 12 months, whichever comes earlier. In short, the way you should understand this is, you get the bulk of the capital upfront, and the balance as soon as we sell. In no circumstances can that timeline exceed 12 months!
Normally, therefore, we would share the risk and charge you some part of it.
However, as a business, we like making things sweet for you. So what we do is, we write a 12-month timeline as an outer limit on paper, and underwrite this risk all by ourselves, for free! What's life without a little risk?!
Put simply, our terms are usually stated similar to this: 80% Advance Sale Consideration payable at the Registration of the Agreement to Sell. 20% Balance Sale Consideration payable at Sale Deed or 12 months, whichever comes earlier. In short, the way you should understand this is, you get the bulk of the capital upfront, and the balance as soon as we sell. In no circumstances can that timeline exceed 12 months!
Ivy:
You’re right, again! Of course, it is legitimate that we can only deploy capital on an empty home, so we can action the sale immediately. But we also understand you’re legally and morally bound to give your tenant notice. No worries. We’ve got a solution here as well.
Once we agree on the amount and payment terms you feel comfortable with, we sign a Letter of Intent expressing our desire to buy from you and your intent to sell to us, formally. This captures all the terms we described above in legal speak, and we transfer a token amount of INR 25,000/- so you’re sure the deal is on. You commit to a no-earlier-than and no-later-than date in terms of closing things out with us, so we can plan our capital allocation wisely.
Having received this, you give the tenants notice. In parallel with their notice period being exhausted, we complete legal diligence with you. As soon as the home is vacated, we call you for the first Registration, and we close things out, ensuring you don’t miss out on valuable rent for even a day! Typically, your notice period would be one or two months, which we accommodate.
Once we agree on the amount and payment terms you feel comfortable with, we sign a Letter of Intent expressing our desire to buy from you and your intent to sell to us, formally. This captures all the terms we described above in legal speak, and we transfer a token amount of INR 25,000/- so you’re sure the deal is on. You commit to a no-earlier-than and no-later-than date in terms of closing things out with us, so we can plan our capital allocation wisely.
Having received this, you give the tenants notice. In parallel with their notice period being exhausted, we complete legal diligence with you. As soon as the home is vacated, we call you for the first Registration, and we close things out, ensuring you don’t miss out on valuable rent for even a day! Typically, your notice period would be one or two months, which we accommodate.
Ivy:
Fret no more. We understand because a lot of the homes we purchase are ones with outstanding loans. It is fairly simple - we clear the loan for you at the time of executing the Agreement to Sell. We pay the bank the outstanding amount directly. At this time, we collect the keys from you so we can begin our renovation work.
From here on, the bank will proceed to requisition your original documents over to the branch from where the loan was originally issued. This typically will take them one or two weeks. Once the documents are received at the branch, the bank notifies you. You visit the bank with our legal counsel.
We inspect the original documents for completeness and healthy condition. Once the documents are received at the branch, the bank notifies you. You visit the bank with our legal counsel. We inspect the original documents for completeness and healthy condition.
Once our counsel is satisfied, we basically proceed to the sub-registrar office for Registration of the Agreement to Sell, on the very same day. If any balance payment is due to you out of our aligned advance amount, you receive the Demand Drafts for the appropriate amount at this point.
That’s it, you can relax!
From here on, the bank will proceed to requisition your original documents over to the branch from where the loan was originally issued. This typically will take them one or two weeks. Once the documents are received at the branch, the bank notifies you. You visit the bank with our legal counsel.
We inspect the original documents for completeness and healthy condition. Once the documents are received at the branch, the bank notifies you. You visit the bank with our legal counsel. We inspect the original documents for completeness and healthy condition.
Once our counsel is satisfied, we basically proceed to the sub-registrar office for Registration of the Agreement to Sell, on the very same day. If any balance payment is due to you out of our aligned advance amount, you receive the Demand Drafts for the appropriate amount at this point.
That’s it, you can relax!
Ivy:
Of course! The law on this matter is simple. Firstly, let’s address the amount TDS is computed on. Per the law, TDS is due to be computed on the higher of the transaction amount or the guidance value pertaining to your apartment unit as ascertained by the government.
Secondly, TDS is due to be deducted at the time of every payment being made. We, therefore, deduct the appropriate amount basis your status (NRI/resident at the time of each payment being made. The appropriate applicable percentage is ascertained by our legal team upon scrutiny of your documents. Each time TDS is deducted, of course, we ensure to deposit immediately to the government on your behalf and share the challans as applicable with you to evidence payment. It will reflect in your paperwork, per government policy, in the next quarter.
Secondly, TDS is due to be deducted at the time of every payment being made. We, therefore, deduct the appropriate amount basis your status (NRI/resident at the time of each payment being made. The appropriate applicable percentage is ascertained by our legal team upon scrutiny of your documents. Each time TDS is deducted, of course, we ensure to deposit immediately to the government on your behalf and share the challans as applicable with you to evidence payment. It will reflect in your paperwork, per government policy, in the next quarter.
Ivy: The whole reason for us to exist is to help you with immediate liquidity, enabling onward investment. All funds you receive from us, are therefore immediately deployable for further investment. Like we said earlier, the whole value we add is in instant, clean liquidity.
Ivy:
While we aren’t the best folks to help you with Capital Gains without really understanding all of your finances, we can certainly share with you our basic understanding of how this applies. Let’s assume a complex case where the two stages of our transaction happen in different financial years.
The law on the matter is fairly simple - you can choose, with the help of your accountant, to wisely book the entire gain either in the first financial year or the second - this does not split. Your accountant can, of course, add significant further nuance specific to your case.
The law on the matter is fairly simple - you can choose, with the help of your accountant, to wisely book the entire gain either in the first financial year or the second - this does not split. Your accountant can, of course, add significant further nuance specific to your case.
Ivy:
We don’t really think we know how to say no! The answer, here as well, is something we’ve figured out. However, this takes a slightly higher risk on our part, and some trust from your side. Here’s how we can structure something alternate.
We simplify Step 1 to become not a Registration, but a simple “Execution” (i.e. signing) of the Agreement to Sell, done remotely. We pay only a small consideration (say 5% of the agreed sale consideration) at this stage. The document is executed remotely by you folks and exchanges hands via courier.
The keys exchange hands, the original documents stay with you, and we proceed on a trust basis to renovate and close the final sale. You folks simply travel to Bangalore one afternoon for both registrations (of the Agreement to Sell we executed, followed right away by the Sale Deed) on the same day, and we close the complete payment out. Like we said, things are clean, clear and convenient in every aspect.
We simplify Step 1 to become not a Registration, but a simple “Execution” (i.e. signing) of the Agreement to Sell, done remotely. We pay only a small consideration (say 5% of the agreed sale consideration) at this stage. The document is executed remotely by you folks and exchanges hands via courier.
The keys exchange hands, the original documents stay with you, and we proceed on a trust basis to renovate and close the final sale. You folks simply travel to Bangalore one afternoon for both registrations (of the Agreement to Sell we executed, followed right away by the Sale Deed) on the same day, and we close the complete payment out. Like we said, things are clean, clear and convenient in every aspect.
Ivy: Once we’ve agreed on commercials, and are in the midst of legal diligence, our Counsel draws up a custom Agreement to Sell for your review and approval.
Every document proceeds to execution only post your formal confirmation of the contents. Everything is handled smoothly.
Every document proceeds to execution only post your formal confirmation of the contents. Everything is handled smoothly.
Ivy:
That’s good to hear. Things are simple. If we haven’t already seen your place, we request you to help us with a time when we can do the inspection and the contact details of someone local we can coordinate with to do this. Once this is closed, our Director of Business Development will reach out to close things out commercially in a single conversation.
The minute this is concluded, we proceed to legal diligence. You know the drill from there on already. Let’s get on with it - our vision is to really enable the swiftest transactions globally. We can’t wait to delight you beyond measure.
The minute this is concluded, we proceed to legal diligence. You know the drill from there on already. Let’s get on with it - our vision is to really enable the swiftest transactions globally. We can’t wait to delight you beyond measure.
Ivy:
All the nuances we’ve covered here got built out as we figured out custom cases with our global clientele.
Once we’ve engaged in detail with you, and understand your specific nuances, of course, as a startup, we’re super open to figuring out mutually beneficial structures that deliver the most value to you, specific to your custom scenarios.
Simply talk to us and share your concerns, and trust that we’ll always find a way!
Once we’ve engaged in detail with you, and understand your specific nuances, of course, as a startup, we’re super open to figuring out mutually beneficial structures that deliver the most value to you, specific to your custom scenarios.
Simply talk to us and share your concerns, and trust that we’ll always find a way!
Ivy:
Never say never! We have some thoughts on how we can help here as well. Why don’t we kick off a conversation? You never know how we can profitably work things out to all our benefit!
Wait no more! Speak to us directly!
Wait no more! Speak to us directly!
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