What are the documents that I need to check before buying a property?
Check for proper conveyance of Title in favour of the builder. Check the license/development right/approvals of the builder. Check clear and marketable title of the project. Ensure execution of proper Allotment Letter/Sale Agreements on your payments. Ensure whether reputed financial companies approve the project. This will help you in getting financial loans. Check the tentative layout/building plan and verify the plinth area of the apartment. It is advisable to check the carpet area of the apartment and find out if the difference between plinth area and carpet area is reasonable. Ask for Occupation/Completion Certificate. Ensure the Conveyance Deed is registered after the entire payment has been made. For buying a property you need to check Deed of Conveyance, Mutation Certificate (for complete property), Land Registration Status, Sanction Plan, Search Report and Payment Schedule (for under construction). It is a must that you go through all the documents relating to the origin of the property, chain of Title, Occupancy Certificate, sanctions from various authorities dealing with building plans, fire safety and Completion Certificate. For re-sale property, check demand notice relating to renovation, tax dues and latest receipts of payments made towards various out-goings such as water, electricity and ground rent.
What is the difference between Built ?up Area, Super Built ?Up area and Carpet Area?
Carpet Area 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. While Built-Up Area is the area of the apartment that includes the area covered by the walls. Super Built-Up Area 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.
What is the difference between the Lease , 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 lesser (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.
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 etcWho does a group of tenants of a old building approach to be able to form a society without the concerned landlords permission.You can approach the Registrar of Co-Operative Societies and file the various relevant documents.
What exactly do we mean by free hold?
A freehold property flat is one where there is a whole and sole owner/s, ownership is full and unconditional and there is no lessor. A freehold property flat is one where there is a whole and sole owner/s, ownership is full and unconditional and there is no lessor / lessee involved lessee involved.
Who is liable to pay Stamp Duty-the buyer or the seller?
The buyer is liable to pay the stamp duty.
What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?
Market value of property is the price at which there is a willing buyer and a seller agreeing to the transfer the property at an arms length transaction. Stamp duty is levied on the ready reckoner rate or the agreement price, whichever is higher.
Who is the appropriate authority for knowing the market value of the property?
It is ideal to get the valuation done by a certified valuer for the house as per the ongoing rates. The property valuation reports can be obtained from the architects or a certified valuation expert.
What action can I take against a builder who is delaying possession?
The first course of action should always be to issue a letter in writing to the builder stating your grievance. Ensure that all assurances by the builder of giving you possession on such and such date are given to you in writing on the letterhead and under the seal of the builder. If it appears that the builder will not be giving you possession in an acceptable time period then you may approach CREDIA for mediation.
What is CREDAI?
The Confederation of Real Estate Developers' Association of India (CREDAI) is an association formed by developers and builders in India for self-regulating the business of real estate development. CREDAI has more than 8500 member developers and builders through 112 member associations with representation in all the major cities and states of the country. CREDAI has its office at #703, Ansal Bhawan, Street 16, Kasturba Gandhi Marg, New Delhi, Delhi 110001.
What is your recourse in case of a delayed project?
First and foremost, buyers should scrutinize the project and the background of the developer. If possible, they must hire a real estate consultancy firm who has market expertise and is known for unbiased consulting. In addition, an investor has the right to ask for the copies of approvals of the project, if not buying during a soft launch stage. You must ask for detailed construction schedules and negotiate for penalty clause in case of delay of project. Refunds can be claimed if a project is delayed beyond the period stipulated in the Builder Buyer Agreement by filing a case in the consumer court.
What is Real Estate Regulation Act?
The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry.
In which area RERA is applicable?
The Real Estate Act makes it applicable for all commercial and residential real estate projects where the land is over 500 square metres.,
DO, s & Don?ts
? Do extensive survey about the market rates and negotiate. ? Check for proper conveyance of Title in favour of the builder. ? Find out whether the property is free from any encroachment. ? If the property is to be transferred by means of Power of Attorney verify whether the attorney holder has the authority to sell the property. ? Check the license/development right/approvals of the builder. ? Always insist for complete original documents and check the owner ship of the Property to be purchased. ? If original documents are not available, make counter check of the ownership from the available photocopies. Verify the ownership from developing authority /Municipal Corporation or Tehsildar /Sub Registrar office. ? Ask for Certificate of non encumbrance i.e. free from any dispute all dues including municipal taxes electricity, water and sewage etc paid. ? Find out whether the property is mortgaged /hypothecated with a bank or under civil/criminal dispute. ? Ensure execution of proper Allotment Letter/Sale Agreements on your payments.Ascertain and confirm the target completion date. ? Ascertain the date of possession when the property will be handed over to the buyer. ? Ensure whether reputed financial companies approve the project. This will help you in getting financial loans . ? There should be clarity about provision of Gardens, Public utilities, Electricity, Roads, Water and Sewage etc ,which should be defined elaborately in the plan. ? Check whether the buyer will have to pay extra charges for the above mentioned facilities ? When buying property from the developer check carpet area, built-up area and super built up area, payment terms , study complete technical specifications of the design and material etc . ? Check the tentative layout/building plan and verify the built up area of the apartment. It is advisable to check the carpet area of the apartment and find out if the difference between built-up area and carpet area is reasonable. ? Ask for Occupation/Completion Certificate. ? No sale is complete without signatures of both the parties. ? Ensure that payments are made through cheques / DDs in the name of vendor against a proper receipt likes sale deed, Agreement to sell etc. ? Ensure the Conveyance Deed is registered after the entire payment has been made. ? It is advisable to check and go through all the documents relating to the origin of the property, chain of Title, Occupancy Certificate, sanctions from various authorities dealing with building plans, fire safety and Completion Certificate. ? For re-sale property, check demand notice relating to renovation, tax dues and latest receipts of payments made towards various out-goings such as water, electricity and ground rent. ? Ensure that the design offered is earthquake resistant.