Are There Any Risks Involved for Sellers at Property Transactions?

In property transactions, a lot of sellers worry about how to sell a property. Although the risks are considerably less for a seller, it doesn’t mean that they are zero. Selling a property can be incredibly time consuming and emotionally challenging task, particularly if you have no experience in it. Strangers come to your home, criticise it with meaningless acquisitions. At a certain point, you may lose the hope to compete with them and may also be able to sell your home less than you thought.

From the seller’s property transactions, the risks are more or less protected, but some aspects still need to be addressed. Most sellers prefer property transactions via brokers/agents. Brokers vested interest in the transaction for property. Any summary by brokers may cause the seller a financial loss. Therefore you need to weigh up the advantages and disadvantages until a final decision is made.

Here’s a complete walkthrough on the seller’s risks at property transactions:


The seller always has the possibility that the property value will be overpriced or underpriced. It's challenging to find a buyer in the event of an overpricing. If it is not sold for a few months, in the market, it will have an "Unsold Property" tag. Another unsold day depresses the property's value. In some cases, the seller is at risk of financial loss in the case of underpricing. 

For a seller, it is essential to know how much extra money they can get from the property transaction. Any realistic request can help the property transaction to close as soon as possible. You need not go with a real estate agent’s t&c. A seller must conduct in-depth research before keeping their property for sale in the market.

Sale Agreement

Depending on different scenarios, buyer or sellers may delay completing a property transaction. To get the entire process in order in an organised manner sale agreement is used. The most common scenario is that after the purchase agreement is signed, buyers manage balance funds through home loans or own assets. The expiry date of the sales agreement is not explicitly specified so that the purchaser will have unlimited time to arrange balance funds.

The sales agreement shall be valid and enforceable legally unless the expiry terms are stated. The sales agreement must identify the terms and conditions for the termination of the sales agreement. Usually, the purchaser will have a period of 30-45 days to arrange for funds otherwise paid by the seller.

TDS Deductions

When you are NRI vendor and buyer or if you are a resident indigenous vendor, TDS u / s 195 is deducted. If TDS is deducted from TDS 194. In each case, the buyer is allowed to deposit TDS at the time of the deduction on or before the 7th of the next month. As a dealer, you should make sure TDS is deposited effectively. Depending on the capital gain tax applicable, you can claim a refund for TDS u / s 195. If you can change the deducted TDS to capital profit/loss in the event of TDS u / s 194.

Based on the applicable capital gain rate, you may demand the refund for TDS u / s 195 while you can adjust the TDS for capital gains/losses with TDS u / s 194. You can include a TDS clause in your marketing contract to protect the risks. The amount paid as a TDS along with schedules to deposit should be stated clearly in this section. Once you collect the seller's TDS stamp, your property payment is not completed. For the NRI Seller and the Resident Indian Seller for the Form16A. Form 16A. Form 16A.

Outstanding Due Payments

It is clear that comparatively, it is much easier to market a mortgage-free property than the one with an existing home loan. Nonetheless, many do not know that it takes an entirely different approach to sell a house with an outstanding home loan. If the buyer is repaying the seller’s loan with their home loan and a certain amount is due after the execution of the sale deed. 

The selling provision whereby "Sale Deed is nullified if the balance payment due is not paid on or before a specific date" must explicitly be included in such a case along with the date by which the payment has been made. You can also take the court claim from the buyer that purchaser owes some amount for property transactions to the seller. If there is no formal balance payment arrangement, then the seller will pay the balance after the buyer. In some situations, there is the possibility that the seller may lose balance.

Do it Yourself!

It’s not an impossible task to sell your home without any professional assistance. But, you need to research the recently sold properties in your area and properties to determine the selling price. Keep in mind that a commission for most homes is included and you might have to discount your price. You need to take the responsibility of your marketing, so you would need to make sure that you get the maximum number of customers to your home at the Multiple Listing Service (MLS). 

You will also view the house and negotiate with the buyer's agent to sell, which some people can take time, pressure and anger. When you forgo an agent, consider finding an attorney to walk you through on the crucial aspects of the contract and transactions. Nonetheless, selling your own house can save you thousands, even with attorney fees. Usually, if the buyer as an agent, meaning that you still have to charge 1 to 3% of the purchase price of a home to the broker.


The risk of a seller is more financial than non-financial in a real estate transaction. All terms and conditions of the property transaction should be discussed with Buyer. You will obtain a token cash/sign sales agreement after mutual agreement with the buyer. Sellers do not usually request copies of their signed documents. 

All documents signed between you and the purchaser should be kept with a copy. This is not only necessary to protect your interest, but also for future reference. 100% threat can not be avoided, but you may also insist on including / excluding the Sales / Deed Clauses to cover the funding depending on the nature of the deal.

Do you want to be well-aware of the risks in property transactions? Browse to find all the latest updates and properties for sale in Hyderabad.


By Govi