What timelines are standard from offer to closure?

The standard timeline from initial offer to final closure in a commercial land transaction typically ranges from 30 to 120 days, depending on the complexity of the deal, regulatory conditions, legal clarity, and the readiness of documentation. This duration is divided into multiple stages, each with its own expected timeframe, ensuring a smooth transition from intent to execution.

1. Initial Offer and Token Advance (3 to 7 Days)

• Begins with verbal or written expression of interest from the buyer.
  
• Followed by:
  
  • Basic site inspection
    
  • Initial price negotiation
    
  • Payment of token amount (1%–5% of deal value)
    
• Parties may sign a Letter of Intent (LOI) or term sheet to reserve the deal.
  

2. Legal Due Diligence (7 to 30 Days)

• The buyer conducts a thorough review of:
  
  • Title documents
    
  • Encumbrance certificates
    
  • Mutation and zoning status
    
  • Land use conversion and approvals
    
• Time may extend if there are pending queries, third-party verifications, or missing records.
  

3. Drafting and Signing of Agreement to Sell (5 to 15 Days)

• Based on due diligence findings, a formal Agreement to Sell is prepared.
  
• This includes:
  
  • Payment schedule
    
  • Possession date
    
  • Conditional clauses
    
  • Penalty or refund terms
    
• Agreement is typically registered or notarized before proceeding further.
  

4. Advance Payment and Fulfillment of Conditions (15 to 45 Days)

• The buyer pays the agreed advance (commonly 10%–30% of the total value).
  
• The seller completes:
  
  • Clearance of pending dues
    
  • Title regularization
    
  • Procurement of approvals (if applicable)
    
• This is the most flexible phase and may vary based on the deal structure.
  

5. Final Payment and Sale Deed Execution (7 to 15 Days)

• Once all preconditions are met, both parties agree on a registration date.
  
• Buyer arranges for:
  
  • Balance payment (typically 70%–90%)
    
  • TDS compliance (Form 26QB if >₹50 lakh)
    
• The sale deed is signed and registered at the Sub-Registrar’s Office.
  

6. Post-Closure Activities (7 to 30 Days)

• Includes:
  
  • Handover of original documents
    
  • Physical possession
    
  • Application for mutation in municipal/revenue records
    
  • Transfer of property tax, electricity, and utility accounts
    

Influencing Factors on Timeline Duration

• Legal complications or co-ownership issues
  
• Bank loan processing or escrow setup
  
• Delays in receiving government NOCs
  
• Negotiations on commercial terms or documentation finalization
  
• Specific clauses requiring time-bound fulfillment (e.g., land use conversion, clearance from statutory bodies)