Real Estate FAQs
As you buy a new home, these questions will answer all common queries about buying and owing a property in India. Use this guide to acquaint yourself with rules, laws and important information.
Q1 What is the difference between Built-up Area,Super Built-Up Area,Carpet Area?
Carpet Area: This is the area of the apartment that does not include the area of the walls i.e. the area of the apartment that a carpet can cover. Built-Up Area: This is the area of the apartment that includes the area covered by the walls. Super Built-Up Area: This includes the built-up areas such as the lobby, lifts, stairs etc. This term is therefore only applicable for multi-dwelling units, such as flat complexes.
Q2 What is the difference between the Lease and the Leave and the License agreement?
A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement. License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration. A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.
Q3 What are the implications of entering into a lease agreement?
There are various implications of entering into a lease agreement such as you have to pay the stamp duty, the lease agreement has to be registered etc.
Q4 Does a foreing citizen of non-indian origin require permission from from the Reserve Bank Of India(RBI) for acquisition of immovable property?
Yes. The RBI may grant permission to a foreign citizen of non-Indian origin/foreign companies if the property is purchased for residential use and the consideration is paid by way of foreign exchange.
Q5 What is the definition of Non Resident Indian(NRI)?
NRIs can be defined as:
- Indian citizens who stay in a foreign country for employment
- Indian citizens carrying on their businesses or vocations
- Indian citizens abroad for any other purpose in the circumstances indicating a definite intention to stay outside India for an indefinite period NRIs can also be:
- Indian citizens working abroad on assignment with foreign governments or international agencies
- Officials of central and state government and public sector undertakings deputed abroad on temporary assignments or posted to their offices abroad
- Indians who have settled abroad permanently or gone abroad on immigration Non-resident Indians become residents of India once they come back to India to engage in employment, for carrying on any business or vocation, or for any other purpose indicating a definite intention to stay in India for an indefinite period.
Q6 Why is it considered necessary to register a property?What is the purpose of registration?
By registering the transaction of an immovable property, it becomes permanent public record. Title or interest can be acquired only if the deed is registered.
Q7 I have a flat which i want to sell and buy a new flat bigger in area.what are my tax implications with regard to capital gains?
If you purchase a new flat within two years of the date of sale of the original flat and invest the entire amount of capital gained into the new flat, you will not have to pay any capital gains tax.
Q8 With refernce to Bombay Rent Act,is there a prescribed percentage of tenants willing to form a society?
For instance, 70 per cent tenants out of a total of 32 tenants are ready to form a co-operative housing society.
Q9 Are there any new provisions?
There is no new provision in the new Rent Act regarding the prescribed percentage of tenants willing to form a society.
Q10 Who does a group of tenants of an old building approch to be able to form a society without the concerned landlord's permission?
Approach the Registrar of Co-Operative Societies and file the various relevant documents.
Q11 Incase a tenant is not protected by the Rent Act,what is the procedure to ask him to vacate and what is the notice period that is required to be given?
A notice is sent to the tenant, failing which a court case may be filed. It usually takes 10 to 20 years to reach a verdict.
Q12 With refernce to the Bombay Rent Act,can tenant of an old building that was repaired by all the year 1995-96 form a co-operative Housing Society without the landlord's permission?
Yes, tenants of an old, repaired building can form a co-operative housing society without the landlord's permission. Assume there is a lease agreement for 6 years for a shop with a built-in escalation clause at the rate of 20 per cent after 3 years. The lease expires on a specified date say, March 31, 2000 and the concerned landlord has sent a written letter. It is always advisable to make a new agreement with the landlord.
Q13 How is the market rent determined?
There is no prescribed norm for determining the market rent rate though it can be easily found out by approaching individuals such as brokers, registration authority, etc.
The first step towards buying a property starts from being able to identify the one that suits your needs and fits your budget. With best rates and best quality homes, Godrej Properties offers you a perfect home. However, it is important to select the property depending on following criteria:
|Parameter||Question to be asked|
|Location of the site||While choosing the location, you need to keep the following parameters in mind like proximity to the main roads, bus stops, railway lines, transportation services, civic amenities like educational institutions, park, police station, temples, community hall, hospitals, and auditorium within reach.|
|Affordability||Does the location fit your budget?|
|Place of work||How far is the office from the desired location?|
|Market place||Where is the nearest market?|
|School||Where is the nearest school?|
|Public transport||Are buses/trains easily available from the location?|
|Builder||Does the builder have a good reputation in the market?|
|Availability of water and electricity||Is there a steady supply of both?|
|Residential/ commercial||Commercial areas face traffic jams during working hours and level of noise is rather high|
|Hospital/ Medical services||Are they available easily?|
|Society expenses||Is the monthly outgo on the society and maintenance a strain on your budget?|
|Security||Are the security systems in place, like a professional guard or electronic systems?|
|Parking||If you own a vehicle, you will need space to park it|
|Type of ownership||In some areas, property is available only on a power of attorney or "pugree" basis. Getting funding for such properties is a problem.|
|Self constructed property(SCP)||SCP is a situation where you buy a plot of land and construct a house there. All banks may not fund such projects.|
|Under construction property at an
|Many banks may not prefer to fund such projects. But if the builder is well reputed then it should not be a problem.|
In case of a ready / resale property, you need to bear the following additional points in mind while selecting a property
|Parameter||Questions to be asked|
|Chain of title||It is important to have all the proper registered documents from the proposed seller that declares his ownership. These documents are important for you to garner a loan from the bank.|
|Maintenance||Check the internal as well as the external condition of the building|
|Water leakages||A flat with water leakages should be strict no as it adversely impacts the overall condition of the building.|
|Condition of the flat||Is the paint peeling off or concrete crumbling?|
|Neighbours||Grumpy neighbours can make life very unpleasant.|
|Society transfer charges||If they are too high then you need to factor that in your budget.|