Frequently Asked Questions

Q1). What are the important documents to be checked before buying a home/property?
Once you have zeroed in on the home of your choice it is necessary to check up some important documents closely before proceeding further. Carry out a thorough search and check out the approved layout plan, the building plan, ownership documents, etc. It is advisable to get professional legal help to help you verify the validity of the documents.

Q2). What precautions need to be taken while buying an under construction flat?
Opting to buy an under construction flat has its advantages as you obviously pay less than for a ready possession one. But be vigilant and ask the builder to furnish all the relevant papers and permissions to ascertain the genuineness of the project. Approved plan of the building along with the number of floors; make sure that the floor where you have booked your flat has been approved. Check if the land on which the builder is building is his or he has undertaken an agreement with a landlord. If so, check that the title of land ownership is free and clear. Check the building byelaws as applicable in the area to make sure that there are no violations of front setback, side setbacks, height, etc. Check specifications given in the agreement to sell to ascertain whether the builder is providing the same as promised. Conduct a thorough background check of the builder and his reputation. Ensure that NOCs for Ensure that urban land ceiling NOC (if applicable) as well as NOCs from the electricity, water and lift authorities has been obtained. Now this is a crucial point to be covered before deciding to buy the flat. Often only the super built up area is mentioned so that the flat area seems larger than it actually is. It is prudent to know the exact carpet area to get the true size of your flat.

Q3). What is Carpet Area?
As per Real Estate (Regulation and Development) Act, 2016, “Carpet Area” means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under service shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

Q4). Where is the Project located?
In case of new and ongoing projects, whether the project has obtained RERA registration.

Q5). How is floor space measured?
Commercial premises throughout India are measured on three different bases as follows :
 Carpet Area
This is a total internal area of a premises measured from the internal walls. This would broadly equate to a standard BOMA net let table area calculation.

 Built Up Area
This is the total area of the premises measured from the external perimeter wall surfaces and incorporates an allocation of common areas on the same floor excluding lift, core and fire stairs .

 Super Built Up
This incorporates built up area but also includes a proportional allocation of all common areas including stairs, lift cores, ground floor lobby, and caretakers office/flat etc. throughout the entire building and therefore usually represents an increase of 35% to 40%(as in Pune, Maharashtra) over and above carpet area. The convention is for all premises to be leased relative to their Built up area. However, as values have risen, some developers are now equating lettable area in Super Built up terms to reduce the effective rate per ft2. As such, prospective tenants need to carefully verify which measurement standard is being utilized.

Q6). What is meant by valuation of property?
The valuation process evaluates the market value of the property. Demand and supply forces operating in the market, as well as other factors like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken into consideration before the market value is decided.

Q7). 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 the property as ascertained by the stamp duty authorities on the basis of a ''Ready Reckoner'' which gives the per sq. mtr. value of each village, zone and sub-zone. The ready reckoner is normally published on 1st January of every year. The Stamp Duty is payable on the agreement value of the property or the market value whichever is higher. Usually different rates for stamp duty are applicable for residential and nonresidential property. In Maharashtra, the rate of stamp duty is 5%-6% for both residential and commercial property. However, for residential property there is a slab wise concession.

Q8). Where can you find the true prevailing market value of the property?
The Sub-Registrar of the area, in whose jurisdiction the property is located, is the person most apt to for finding the market value of the property.

Q9). On what legal documents is a stamp duty levied?
Significant legal documents required in property transactions such as Agreement to Sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty calculated as per the market value of the property.

Q10). How much is the registration fees on sale of immovable property?
The registration fee in case of sale of immovable property is 1% (in Maharashtra) of the market value or Rs 30,000, whichever is lower. There could be some additional charges for scanning of documents was the office of the Sub Registrar has been computerized.

Q11). Do I have to go personally for the registration?
It is advisable to go personally but in case it is not possible, a registered power of attorney can be issued to some other person. This Power of Attorney should mention all the relevant clauses and must be registered before the Sub Registrar.

Q12). Will someone escort us for the registration?
Yes, the POA holder of the developer is present at the member escorts our customers for registration.

Q13). When and where should a document be registered?
Every document which is required to be registered under the Registration Act, except a Will, should be presented at the office of the Sub Registrar of Assurances for the registration within the prescribed time of four months from the date of its execution. A document is registered with a sub-registrar appointed by the State Government, under the Indian Registration Act, 1908. It is advisable to register documents after the booking amount.

Q14). What are consequences of non-registration of a document?
An instrument, which is not registered, is inadmissible as evidence.

Q15). What is stamp duty and who is liable to pay the stamp duty, the purchaser or the developer?
Stamp Duty is a tax, similar to sales tax and income tax collected by the government, and must be paid in full and on time. A stamp duty paid instrument/document is considered a proper and legal instrument/document. The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary. Section 30, of Bombay Stamp Act, 1958 states the liability for payment of stamp duty. The document can be stamped online as well.

Q16). Which are the instruments that attract the payment of stamp duty?
The instruments like Agreement to Sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty on market value of the property.

Q17). Can I make site visits to the house during construction?
Once construction on your house has begun, site visits without a builder representative are not allowed. Many dangerous conditions exist on a construction site and to comply with insurance requirements we request that you refrain from visiting the site unaccompanied. After the house is framed, under roof and the trades have roughedin their components, a pre-drywall walk-through is scheduled. At this time, you will be able to see the status of the home and to make sure all your options have been added.

Q18). What are all the important documents one should check before buying any property?
If you want to purchase a property, you have to look at the sanctioned plan, approved layout plan, ownership documents, partnership deed, carryout search, etc. You can use the services of an advocate before you purchase a property for advice.

Q19). What documents would I need at the time of possession?
 Original copies of the chain of title agreements and Building Plan approvals
 Original registration and stamp duty receipts
 Possession Letter
 Original share certificate (In case of societies)
 Proof of payment of all dues like maintenance charges, electricity bills, phone, water and property taxes up to the date of handing possession
 NOC from the Society or other concerned body confirming no objection to the transfer.

Q20). Which Important Legal Documents necessary for property transactions?
Owning your own house is more than just a financial decision, it's also an emotional one. So, don't rush your decisions, be careful, vigilant and get yourself updated on the various technicalities while conducting your property search, while identifying your choice of a home and even while finalizing the deal. Importantly make sure that the legal status of the home is clear and without conflict. This cautiousness will help you avoid a lot of unnecessary legal hassles in the future. Let us find out more about all the various legal documents necessary for home buying transactions.

Q21). Are there any income tax benefits for property purchase?
If you are getting your house purchase financed via a bank or a financial institution then as per Section 88 of the income tax you can claim benefit for the principle repayment, interest on loan is deductible u/s 24 from income from House Property. But these benefits are available only for residential properties and not for commercial properties.

Q22). How much tax rebate is available on a home loan?
As per Section 80C of the Income Tax Act, you are allowed separate deductions on principal and interest amount of home loan amount, along with other entities like ULIP, PF, PPF, ELSS and NSC's. In case of principal, you can claim deduction up to Rs 1.5 lakhs while in case of interest, it is Rs 2 lakhs. The amount of stamp duty and registration is also eligible for tax deduction. It is important to note that the tax break can only be claimed for the year in which the construction is completed.

Q23). How can I register my property?
Registration of a property includes necessary stamping and paying of registration charges for a sale deed and getting it recorded at the sub-registrar's office of the concerned jurisdictional area. If a property is purchased from a developer directly, getting it registered amounts to act of legal conveyance. In case the purchased property is a second or third transaction, it involves a duly stamped and registered transfer deed. Nowadays, property registration process is computerized in most states.

Q24). What is property registration?
It refers to the registering of documents relating to transfer, sale, lease or any other form of disposal of an immovable property. Registration is compulsory by law for all properties under Section 17 of Indian Registrations Act, 1908. Once a property is registered lawfully, it means that the person in whose favor the property is registered is the lawful owner of the premises and is fully responsible for it in all respects.

Q25). What documents do I need to check if I am buying a resale property?
Clear and marketable Title, Sale Deed, Encumbrance Certificate, latest tax receipts, Occupancy Certificate, Building Plan Approvals and Possession Certificate.

Q26). What documents are required for registration of a new apartment/plot?
Sale Deed, No Objection Certificate (NOC) from builder, NOC from banks, Building Plan approvals, Completion Certificate, PAN Card and Photographs.

Q27). How do banks valuate the property for insurance?
Property valuation is done by multiplying the built up area of the property with the cost of construction per square feet. This is the usual method followed by most banks.

Q28). What does a home insurance policy cover?
Home insurance policies cover the house structure as well as its contents or possessions. Many insurance policies also combine various personal insurance features too.

Q29). If I have money, is it still necessary to avail of a bank loan for buying a home?
It is generally advantageous to go for a home loan as it helps you in availing tax benefits. However, please consult your CA or tax advisor to discuss the advantages and disadvantages in your case.

Q30). What is the time required for home loan disbursement?
On an average, loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of required procedures.

Q31). Can I sell the property, even when the home loan is outstanding?
Yes, you can sell the property with the consent of the banking institution. If the buyer wants to take a loan to buy the property, the process is much easier if he approaches the same bank. In these cases, the bank does not need to release the property papers to another bank before getting the payment. If the buyer wants to make a payment outright, he can make it to the bank directly. The property papers will be released only after the bank has recovered the entire loan amount.

Q32). How much out of pocket money is needed to buy a new home?
The amount of money needed depends on many things, such as the cost of the house, the type of mortgage you are applying for and your credit history. Funds will need to be available to cover three things:  Earnest Money: the deposit you submit at the time your contract is written. This money is held in an escrow account once your contract has been accepted and is credited to you at closing as part of your down payment and closing costs.  Down Payment: a percentage of the sales price that is paid at settlement.  Closing Costs: one-time fees associated with obtaining a loan and transferring title to property.

Q33). What’s the difference between remodeling and renovating a home?
Renovation of a home or property means changes and updates were made to the property, but major structural changes did not take place. For example, painting the interior of a kitchen, replacing the faucet and appliances, and redoing the flooring would all fall under a renovation. However, if walls were moved and the space was expanded or changed, this would be called a remodel.