How to Sell Inherited Property Legally in Pune: A Step-by-Step Guide

Selling a property you bought yourself is stressful enough. Selling a property you inherited? That is a completely different beast. In Pune, where property prices in areas like Kothrud, Prabhat Road, and Kalyani Nagar have skyrocketed, inherited properties are often worth crores. But they also come with a mountain of emotional baggage and legal paperwork.

Let's look at a common situation in Pune: Your parents passed away leaving behind a spacious 2BHK in Sahakar Nagar. You and your sister are the legal heirs. You live in Baner, and she is settled in the US. You decide to sell the flat. You find a buyer. The deal looks perfect. But at the last minute, the buyer's lawyer asks for a "Probate." You have no idea what that is. Then the Society Chairman refuses to transfer the share certificate until you pay a "Donation." Suddenly, your simple sale has turned into a legal nightmare.

This happens every day in Pune. 4 out of 10 property disputes arise from unclear titles in inherited properties. Buyers are terrified of purchasing such homes because they fear a "long-lost relative" might pop up years later and claim a share.

If you want to sell your inherited property legally in Pune, you cannot rely on shortcuts. This guide covers the entire process—from establishing your title to saving tax on the sale proceeds—written for the ground reality of Pune in 2026. For a general overview of the resale process, you can also check our Flat Resale Guide.

1. The Starting Point: Will vs. No Will

The first question any lawyer will ask you is: "Did the deceased leave a Will?"

Scenario A: There is a Will (Testamentary Succession)

If your parent left a registered Will, your life is slightly easier. The Will clearly states who gets what. However, in India, a Will can be challenged. This brings us to the controversial topic of Probate.

Is Probate Mandatory in Pune?
Technically, under the Indian Succession Act, Probate (a court certification that the Will is valid) is mandatory only in the "Presidency Towns" of Mumbai, Chennai, and Kolkata. It is NOT legally mandatory in Pune.

However, here is the catch. If the property is very high-value (say, a bungalow in Koregaon Park) or if the buyer is taking a loan from a strict bank (read our Home Loan Guide to know which banks are strictest), their legal team might insist on a Probate to ensure safety. Obtaining a Probate from the Pune Civil Court can take 6 months to 2 years.

Scenario B: No Will (Intestate Succession)

If there is no Will (which is the case for 80% of families), the property is divided according to the Hindu Succession Act (for Hindus, Buddhists, Jains, Sikhs). The property goes to Class I heirs equally.

Who are Class I Heirs?

• The Widow (Wife)
• The Children (Sons and Daughters)
• The Mother of the deceased

Everyone gets an equal share. Even if your sister is married and lives in Canada, she owns that Sahakar Nagar flat just as much as you do. You cannot sell it without her consent.

2. The "Legal Heir Certificate" vs. "Succession Certificate"

People in Pune often confuse these two terms. Let's clear the confusion.

Succession Certificate: This is issued by a Civil Court. It is primarily used for movable assets like Bank Fixed Deposits, Shares, Mutual Funds, and LIC policies. It is rarely used for immovable property (Real Estate).

Legal Heir Certificate (Warasa Dakhla): This is what you need for property. You can get this from the Tehsildar's office or the Talathi. In Pune, for property mutation (changing names on government records), the Talathi will often ask for a "Warasa Register" entry.

Pro Tip: Do not spend money getting a Succession Certificate for a flat. It is a waste of time and court fees (which can be up to Rs 75,000). Focus on the Mutation Entry.

3. The "Hakkasod Patra" (Release Deed) - The Most Critical Document

This is where most deals in Pune get stuck. Let's go back to the example: You and your sister are heirs. She wants you to keep the entire money from the sale, or maybe she just wants to give up her share because she is well-settled. She cannot just say this verbally.

She must execute a Registered Release Deed (Hakkasod Patra).

Why is this non-negotiable?
Without a Release Deed, she remains a co-owner. If you sell the flat, she (or her children/husband in the future) can sue the new buyer claiming her share was sold without her written permission. No smart buyer will touch your property without this.

The Cost:
If she is releasing her share without taking money (out of love and affection), the Stamp Duty in Maharashtra is nominal (approx Rs 200 - Rs 500).
If she is taking money for her share, the Stamp Duty will be calculated on the market value of that share (usually 6-7%). For current rates, check our Stamp Duty Guide.

Where to do it?
This must be registered at the Sub-Registrar Office (SRO). In Pune, you can go to any Haveli office (e.g., Haveli No. 1 to 27) that has jurisdiction or uses the "Anywhere Registration" facility. For office locations, refer to our Property Registration Guide.

4. Mutation: Changing the Name on Government Records

Before you even list the property on 99Acres or MagicBricks, you must get the deceased person's name removed and the heirs' names added to the government records.

For Flats (Apartments):
You need to update the Property Card (City Survey Record) and the Municipal Corporation (PMC/PCMC) Tax Bill.
Visit the City Survey Office (e.g., the one near Collector Office or local ward offices). Submit the Death Certificate and the Legal Heir proofs.

For Land/Plots (Wagholi, Lohegaon, Hinjewadi):
You need to update the 7/12 Extract (Satbara Utara). This is done at the Talathi office. While the Maharashtra government has launched the MahaBhumi portal for online mutation, the ground reality in Pune is that a physical visit to the Talathi is often required to "speed up" the file. For more on land records, see our Plot Buying Guide.

Why do this before selling?
If the tax bill still shows your late father's name, the buyer's home loan will be rejected. Banks need the seller's name to match the property documents perfectly.

5. The Public Notice (Paper Notice)

When you find a buyer, their lawyer will insist on publishing a Public Notice in two local newspapers.

Why?
To announce to the world: "We are buying this property from Mr. X. If anyone has an objection (like a hidden loan, a secret will, or a third sibling), speak now or forever hold your peace."

The Pune Rule:
Do not publish this in an obscure English newspaper that nobody reads. It must be in a widely circulated Marathi newspaper like Sakal, Lokmat, or Pudhari, and one English paper like Times of India or Indian Express.

The standard waiting period is 14 days. If no one objects within this time, the lawyer issues a "Title Clearance Certificate."

6. Dealing with Housing Societies

Housing Societies in Pune, especially the older ones in Peth areas or Deccan, can be very difficult. They often demand:

• A copy of the Will or Probate.
• Indemnity Bonds from all heirs.
• Transfer Fees (officially Rs 25,000 max, but unofficially they ask for "Donations").

Your Rights: The Society cannot legally stop the transmission of shares to a legal heir. They are a record-keeping body, not a court. If they harass you, you can complain to the Deputy Registrar of Co-operative Societies in Pune. Usually, a legal notice from a lawyer settles them down.

7. Tax Implications: It's Not All Profit

Many sellers forget that the Income Tax Department wants a share. Selling inherited property attracts Capital Gains Tax.

Long Term Capital Gains (LTCG):
Since you inherited the property, the "Holding Period" is calculated from the date the original owner (your parent) bought it. If the total period is more than 24 months, it is LTCG.

How is tax calculated?
Sale Price - Indexed Cost of Acquisition = Profit.
Indexed Cost: You can adjust the original purchase price for inflation using the Cost Inflation Index (CII). This significantly lowers your tax.

How to Save this Tax?
You don't have to pay the 20% tax if you reinvest the profit:

• Section 54: Buy another residential house in India (within 2 years or construct within 3 years).
• Section 54EC: Invest in Capital Gains Bonds (NHAI or REC) up to Rs 50 Lakhs. Lock-in period is 5 years. Interest rate is low (~5%), but your tax is saved.

8. Common Scams to Watch Out For

1. The "Power of Attorney" Trap:
Sometimes, a broker might suggest: "Why do all this paperwork? Just sell on the basis of the old Power of Attorney your father gave you."
STOP. A Power of Attorney dies with the person. If your father passed away, his PoA is invalid. Using it to sell property is fraud and can land you in jail.

2. The "Token Amount" Rush:
Buyers might try to force a token amount on you before you have your papers ready. "Sir, take 1 Lakh, let's fix the deal."
Don't accept it until your Release Deeds and Mutations are done. If you take the money and then realize the paperwork will take 6 months, you will have to return the token with interest or face a lawsuit.

Conclusion: Patience Pays

Selling inherited property in Pune is not like selling a packet of biscuits. It is 80% documentation and 20% transaction. The market in 2026 is smarter and stricter. Buyers are wary of litigation.

If you have your Legal Heirship established, Release Deeds registered, and Tax Receipts updated, you can command a premium price. A property with a "Clean Title" is rare in Pune, and buyers will fight to pay you for that peace of mind. Don't rush the process. Clear the clutter, legalise the ownership, and then enter the market.

Frequently Asked Questions (FAQs)