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:
- 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.