The Registration Act, 1908, the Transfer of Property Act, 1882 and the Real Estate (Regulation and Development) Act, 2016 mandates the registration of an agreement for sale of an immovable property. By registering the agreement for sale of an immovable property, it becomes a permanent public record. Further, a person is considered as the legal owner of an immovable property only after he gets such property registered in his name.

California has stringent disclosure laws that require sellers to disclose any known issues with the property. These include the Transfer Disclosure Statement (TDS) and Natural Hazard Disclosure (NHD) Statement.

Transfer Disclosure Statement (TDS): This is a mandatory document that requires sellers to disclose known material defects in the property. It includes details about structural issues, past repairs, the condition of appliances, and other aspects that might affect the property’s value or desirability.
Natural Hazard Disclosure (NHD) Statement: California’s diverse geography makes it prone to natural hazards like earthquakes, wildfires, and floods. The NHD informs buyers if the property is in a designated hazard area. This disclosure is essential, as it helps buyers understand the potential risks associated with the location.
Additional Disclosures: In addition to TDS and NHD, sellers may need to disclose any recent deaths on the property (within the last three years), nearby environmental hazards, or past insurance claims on the home. If the property was built before 1978, a Lead-Based Paint Disclosure may also be required.

Being upfront and thorough with disclosures is crucial. Not only does it protect you from legal issues after the sale, but it also builds trust with potential buyers.

If the amount of money that you earn from the sale of the property will be reinvested into the purchase of a new one, and you will use this new house or flat as your new home, you don’t need to pay capital gains tax.