Legal documents to be checked before buying property

Today, we will discuss the 12 legal documents we must check before purchasing a property. What are those legal documents, let’s have a look. We have often heard cases of people buying a property that is owned by somebody else or has been mortgaged to the bank. Eventually leading to money getting stuck on the buyer and leading to unwanted court cases. So, to save your time, and money and have peace of mind, always check the below legal documents before buying a property. 

TITLE DOCUMENT: The first document is the title document. The meaning of the title document is from whom you are buying this property. In short, it refers to ownership of the property. Insist on seeing the original, and not a copy of the title deed because it will also tell you whether the seller owns the property legally or not. A buyer should check the original documents either the sale deed (it means the person who sells the property to you from where he gets that property, you have to look into that sale deed), gift deed (sometimes in such cases there is no sale deed of the property, the seller has got it from someone as a gift, so check the gift deed of that property), or conveyance deed ( conveyance deed, means the seller has bought it from any UID or corporate instruments). Although, the conclusion of all these deeds is to check and verify the property. 

CHANNEL DOCUMENT:  The second document is channel documents also called hawala documents. It means when the property is sold from ‘A’ person to ‘B’ and then from ‘B’ to ‘C’. so, whenever the property is sold out and a registered deed is built or any trail is built on, then you have to check everything in it. That’s why it is also known as a hawala, where the property is transferred from one person to another person. So, in this document, you have to check all channels.

ENCUMBRANCE CERTIFICATE: The next and most important one is the encumbrance certificate. This certificate tells you whether the property has any tax or is mortgaged, or has any penalty on it. Generally, we don’t look at this certificate but for safety purposes, you should go to the sub-registrar office, and fill out form number 22, it is almost in every state but it can vary in every state. So, you have to pay those nominal fees and you will get every information about that particular property. Like; who has bought this property, who sold it, taxes on the property, or any pending penalty or not. Therefore, if there is nothing pending then through form number 15, you will get it back and otherwise they answer back every pending detail of the property. But, there is also one limitation, if the registry department has no information available then they are also not able to provide any information to you. So, you must not depend completely on this as well. 

OCCUPANCY CERTIFICATE: The fourth one is OC. Normally, if anyone buys a property from a developer, then in that case they get the OC from a particular UID or the local government. Also, look at the other sanctioned plans from the builder. 

POSSESSION LETTER: The fifth one is the possession letter or it is also called the allotment letter. If you are buying any flat or property then you must check whether the builder has the possession letter of that particular property or not. This letter is given by the government when all the rules and regulations are followed.

 MORTGAGE: Next one is the mortgage, in which you have to check whether the property you are buying has any type of mortgage/loan or not. Although, if the property is mortgaged then the property should not be bought by the buyer.

TAX RECEIPTS: It is on every land purchase. The municipality takes land taxes. The only thing you have to check is to see whether the previous owner of the property has completely paid the taxes or not because it helps you to save your liabilities and you also get to know who owns the land. 

UTILITY BILLS: The next one is utility bills. You have to check whether the previous owner has paid all the utility bills or not. For example, electricity or water bills.

CAR ALLOTMENT LETTER: The ninth one is the Car Allotment Bill which means if you are buying any flat or property in the metropolitan area, there is a letter for a car parking area. So, you must check whether you get the car allotment letter or not from the owner. If the owner has no car allotment letter then you have to face some problems regarding it in the future.

RESIDENTS WELFARE ASSOCIATION (RWA): This point is for those people who take any property or flat or used to live in a building where the residential welfare association is already made. So, you have to look for NOC whether the previous owner has NOC or not because usually, people don’t pay the maintenance charges of the society and then the next owner will have to pay those liabilities.

MUTATION: The next document is mutation also called JAMA BANDI. It is additional evidence. In this document, you have to check whether the government documents have the previous owner’s name registered or not, and the day when you buy a property then you must register it in your name.

Conversion Certificate: The last and most important document is the conversion certificate. Mainly, there are two types of land- one is agricultural land and the other is non-agricultural, Therefore, you must not buy residential/commercial property built on agricultural land, and you must verify if the seller has converted the property to non-agricultural from agricultural if it can be done. Therefore, it is important to look for the conversion certificate.

How to save tax on property – For sellers

When selling a property, sellers want to know how much tax they’ll pay and whether there is any way to reduce or avoid the tax. The article below focuses on capital gains tax for sellers who are selling a property.

A self-occupied house gives you two avenues of saving taxes which are the payment of interest and repayment of principal. You can get Rs 2 lakh deduction under section 24b of the Income-tax Act, 1961 on interest payment and Rs 1.5 lakh on principal repayment under section 80C.

What is a Capital asset?

Capital assets include land, buildings, jewelry, vehicles, trademarks, machinery, patents, and licenses. When a capital asset is sold and any profit is received, it is known as capital gains. Agricultural land is not a capital asset.


Capital gains tax on residential property for sellers:

To understand capital gains, let’s consider an example. Regarding residential property, there are two types of capital gains tax: long-term capital gain and short-term capital gain. We will now discuss these two taxes.

  1. LTCG (LONG-TERM CAPITAL GAINS)- If you hold a property for more than 24 months, you pay a flat rate of 20% tax on any capital gains. Exemptions are available in this.
  2. STCG (SHORT-TERM CAPITAL GAINS)- If you hold the property for less than 24 months, you will be charged short-term capital gains tax. The government taxes the individual at their slab rate of income tax. If you are in the 30% bracket, then STCG will be 30%. You do not receive any benefits for indexation (i.e., inflation). The amount for which you purchased the property and sold it, the difference will be taxed.

The following chart illustrates and differentiates between long-term capital gains and short-term capital gains.

CAPITAL GAINS ON RESIDENTIAL PROPERTY                STCG                         LTCG
TIMELess than 24 months(2 years)        More than 24 months (2 years)
TAX@Slab       Flat rate 20%
EXEMPTIONNo    Yes
INDEXATIONNo       Yes

Capital gain tax exemption:

Furthermore, we will discuss three ways in which you can save on long-term capital gains tax when selling residential property and other assets.

  1. SECTION 54- Under section 54, individuals and Hindu undivided families (HUF) can claim tax benefits on residential property they own. The minimum holding period is two years. It is important to note that only residential properties qualify for this section; commercial properties do not qualify. Next, the residential property must be a constructed property that you are selling. If you are selling the residential plot, then you will not get any benefit from it. If you invest the profits received from the proceeds in the purchase of 1 or 2 residential properties or the construction of another property, you will get a complete exemption from long-term capital gains tax.
    1. The capital gains from selling the property must be put in a new property which can be purchased within 1 year of the sale or within 2 years of the sale, in order to claim tax exemption. Similarly, if you are constructing a property, then for the forthcoming 3 years, if construction is completed, tax exemption will be available for you. Here, you only need to invest the number of capital gains i.e. profits; you do not have to invest the entire amount.
    2. FOR EXAMPLE: Twenty years ago you purchased a residential property for Rs 60 lakhs. And now sold it for Rs 90 lakhs. So 30 lakhs is a long-term capital gain (LTCG). Invest this 30 lakhs in 1 or 2 properties or some construction work; you don’t need to invest the entire 90 lakhs. The maximum capital gain which you can claim is up to Rs 2 crores. This exemption can be claimed once in a lifetime and will be reversed if you sell this new property within 3 years from its purchase date. If you invest this amount into bank fixed deposits or a savings account, this cannot be claimed as an income tax exemption. Banks offer a capital gains account scheme if you wish to claim the tax exemption.
  2. SECTION 54EC- Any individual can open a capital gains account. Any asset like; stocks, mutual funds, bonds, and house property may be used as collateral for this type of account. A 3-year holding period is required, with the ability to invest within 6 months. The maximum amount that can be supported is 50 lakhs, but all must be invested in specified bonds with a 5-year lock-in period. These bonds offer good returns on investment and are available only through this type of account.
  3. SECTION 54F- Now, finally, we come to Section 54F. In this section, any individual or Hindu Undivided Family (HUF) can claim tax exemption on capital assets other than a house property. Such assets include bonds, stocks, commercial property, and plots. The person taking the exemption shall not hold more than one house property. To acquire the asset’s value, you must buy residential property or construct it. This section does not cover any plots. The time limit for claiming tax exemption is 1 year back or 2 years forward if you purchase a property; construction is forward 3 years.

There are some other conditions under SECTION 54F and i.e.;

  1. The entire sale proceeds must be invested. Invest the entire 90 lakhs and not a partial amount or capital gains on which you can claim full exemption. You can only claim a partial exemption if part of the money is invested.
  2. If you sell this new property within three years of its purchase, the exemption will be reversed.
  3. If you want to claim the capital gains tax exemption, invest in a capital gains account. You cannot claim this exemption on a savings account.

Things you should know about GST in Real Estate

Centre's FY22 GST compensation amount should be higher than projected Rs  1.58 lakh crore: Opp-ruled states - The Economic Times

OVERVIEW OF GST: 

In 2000, the late Atal Bihari Vajpayee, the then prime minister of India, initiate a committee to draft new indirect tax law and i.e. GST which stands for Goods and Services Tax. It was launched to replace multiple indirect taxes in India. Such as excise duty, value-added tax (VAT), services tax, purchase tax, octroi, entry tax, luxury tax, and so on. Here, propertywala brings every fact and figure that you should know about GST in real estate.

DEFINITION:

The Goods and Service Tax Act was driven in Parliament on 29th March 2017 but it came into effect on 1st July 2017. It is the only tax that applies all over India and imposes on the supply of certain goods and services. However, GST does not replace customs duty, which is still required on imported goods and services. Different categories of products and services attract different tax rates under GST.

Now, we will go ahead with the GST regime which is given by our Honorable Prime Minister Shri Narendra Modi, In his words, the Goods and Services Tax (GST) is “a path-breaking legislation for New India”. Then, GST is not just a tax reform but a milestone in realizing Sardar Vallabhbhai Patel’s dream of building ‘Ek Bharat – Shrestha Bharat’.


GST APPLICABILITY IN REAL ESTATE:

APPLICABLE
1. It is applicable to under-constructed flats only.
2. It is because the GST does not cover the real estate sector under its range. Therefore, the tax rate applicable on a property is charged under ‘work contracts.

 
NOT APPLICABLE
1. GST does not apply to ready-to-move-in flats, plots, and lands.
2. Upon completion and receiving the occupancy certificate i.e.(OC), the property is categorized as ready to move in. That is why a developer cannot charge GST on selling ready-to-move-in homes.

GST RATE ON REAL ESTATE 2022:

Everyone has a dream of a house. Well! It is fine if you are planning to buy a property. Because buying the right property is one of the biggest achievements in life. So, home buyers in India have to pay GST on the purchase of under-construction properties such as flats, apartments, and bungalows. Before hurrying on to the process, the foremost thing you must ask yourself is, “what is the GST rate on real estate?

PROPERTY  TYPEGST RATE FROM APRIL 2019
Affordable housing1% without ITC (Input Tax Credit)
Non-affordable housing5% without ITC
According to the table, if the property is affordable,  the GST rate from April  2019 is only 1% without ITC. Also, for non-affordable housing, the GST rate is 5% without ITC.

WHAT IS ITC?

Input Tax Credit refers to the tax already paid by a person on any purchase of goods and/or services that are used or may use for business. Therefore, it is available as a deduction from tax payable.

AFFORDABLE HOUSING AS PER GST:

According to government norms, housing units worth up to Rs 45 lakhs are referred to as affordable housing in metro cities in which carpet area measures up to 60 sq. meters. The Delhi-National Capital Region, Bengaluru, Chennai, Hyderabad, the Mumbai-Kolkata are categorized as metropolitan regions. A housing unit in non-metro cities barring to be an affordable house, if it costs up to Rs 45 lakhs and has a carpet area of up to 90 square meters as mentioned in the given table.

CITIESPRICECarpet AREA (SQ/M)
METROSup to  Rs. 45 lakhs60 sq./m
NON- METROSbelow Rs.4590 sq./m

SOME FACTS TO BE NOTED WHEN CONSIDERING GST IN REAL ESTATE:

  1. It does not subsume the stamp duty and registration charges, which you still have to pay.
  2. Seller increases the cost of ready-to-move-in properties to factor in the GST cost. So, overall the under-constructed properties are still cheaper than ready-to-move-in properties. 

That’s all you need to know about GST when it comes to real estate.

All you need to know about the sale deed

What are the steps in the process of buying a property?

Let’s first discuss the steps in buying a property. When purchasing a property, the first step is negotiating the price with the seller. To confirm the booking, you must pay an advance to the seller. A builder must first pay a 10% deposit and sign a booking form before purchasing a property. After the buyer and seller agree on terms, they sign a contract that includes a time period for payment (generally two to three months). But this is not a sale deed. It’s important to note the information, facts and details in a sale deed and here’s everything you need to know.

A sale is completed when the seller transfers ownership rights to the buyer. The deed of sale is drawn up and registered with a specific state authority, making it valid.

How is a Sale Deed Executed? – RoofandFloor Blog

What is Sale deed?

The deed of sale is a legal and final document transferring ownership of a property. It describes the terms of the sale and is signed by both the buyer and the seller. Depending on its purpose, a contract of sale may also be called a contract of sale or a contract of sale mortgage. A bill of sale is governed by the common law, the Contracts Act, the Transfer of Property Act, etc. It uses certain terms that are standard across all jurisdictions, but certain details relate more specifically to the Indian context such as consideration (usually the same as the amount paid).

Benefits of Sale deed:

  1. Protects Parties – A well drafted deed protects both the buyer and the seller by preventing ambiguity and minimizing legal risks.
  2. Defines The Area – Buyers find it helpful to specify the square footage and locations of properties on paper.
  3. A sale deed is a legal document that concludes a sale. It is enforceable by law.

Clauses / Elements in the Sale deed you should know:

The sale deed includes the following details:

  1. Details of the party – The details of the party include the names, ages, and addresses for both buyers and sellers.
  2. Details of the property The location of the property, a description of the property, and construction details.
  3. Payment details – Payment details will show you the price of your property. It also lists the payment mode like a credit card (Visa, MasterCard, Discover) or direct transfer from a bank account.
  4. Handing over the original papers of the property and the possession details.
  5. No dues on the property – On the property, no dues, such as loans, tax, liability, and other dues.
  6. Indemnity clause –  An indemnity clause in a sale deed provides protection for the buyer’s interests. It is important to draft the document with care to avoid future disputes. Indemnity clauses under the sale deed seek compensation if there are any losses or expenses in the future.

What is the process for executing a Sale deed?

  1. Draft sale deed – To execute a sale deed, you need to first draft a sale deed. This document records all of the property owner’s rights, duties, and interests in the property. This includes encumbrances, liens, loans, taxes, mortgages and deeds for neighboring properties if they do not belong to the same legal entity.
  2. Pay Stamp Duty – Stamp duty is a tax paid to the Indian government on the sale of real estate. It is usually paid by the buyer and varies from state to state. For more details see our detailed video on stamp duty.
  3. Signed – Both buyer and seller must sign the sales deed. This document ensures that they have both agreed to the terms of the sale transaction. The deed must be registered within four months of the date it was signed in order to be valid.
  4. Registered – A sale deed serves as both proof of ownership and an essential legal document required for taxation purposes. It is an affidavit signed by both the seller and buyer. This is submitted to the revenue department when registering property under several tax laws. It must be registered within 4 months of signing the document. If this deadline is exceeded, you risk losing your right to purchase the property.
  5. The seller gives the original documents – The seller delivers the original documents and the buyer pays to execute the sale deed.

The following are the important, procedural, and legal terms you should know about sale deed if you are planning to sell your house.

Best tips to hire a broker in India

Real estate is one of the largest industries in India. There are several companies of real estate agents who work as intermediaries between buyers and sellers of property. Finding an agent for real estate can be a difficult task. There are so many qualities and attributes to look for that finding someone who has them all is impossible. However, there are some basic qualities and tips to hire a broker in India.

Designated Agency Duties & 4 Good Reasons for an Exclusive Buyer Brokerage  Agreement - Illinois REALTORS

Here’s what you should know before hiring a broker in India:

  1. Whenever we hire a broker for our real estate transaction, we must list our requirements clearly. For example, what type of property you want, locality, etc. As brokers don’t specialize in the entire area. So, they might show options that they’re selling. So, make it your job to be clear about what you want to purchase.
  2. If you are looking for a best real estate broker, choose a registered one. This will provide you with another level of trust and credibility. The Real Estate (Regulation and Development) Act, 2016 (RERA) requires real estate brokers to be registered with the state RERA authority.
  3. You should always ask about the latest pricing and gauge the broker’s market knowledge. Excelled brokers always know about their localities’ future developments and capital rates. They should have good interpersonal skills and find out how good they are at conversing with clients.
  4. You need to find out how many years they have been in the real estate business, their record on selling the property, the number of deals they cracked, what their credentials and qualifications are if they have experience, etc. Ask all brokers you are communicating with for details on previous clients and speak to the clients so that they can also give their reviews on that particular broker.
  5. Find an agent who will spend enough time with you until you find a property that suits your desires. A broker should understand the nuances and will advise you accordingly.
  6. Buyers need to find a broker who has good intentions and should be thinking about your benefit. 

Now you know how to choose a good broker, and this is the end of the best tips to hire a broker in India.

How to search brokers in India:

  1. You can also search online on platforms like propertywala.com.
  2. Try to talk to at least two to four brokers before finalizing, and try to discuss all talked-about matters with expectations.
  3. Try to connect on call, see his office, and have a meeting with him for your trust.

Stamp duty and registration charges in India?

Suppose a buyer and seller get into a sale and purchase of the property. For the sale deed, they must register it in India and pay stamp duty and registration charges.

What is Stamp Duty Refund Process when the Sales Deed is canceled? - Kotak  Bank

Who collects Stamp duty and registration charges in India?  

  1. As per the Indian Stamp Act 1899 the state government collects Stamp Duty and not the central government. It is different in different states. The state government uses it for building the state’s infrastructure.
  2. Stamp Duty varies with the type of housing and the state in which it is located, and it also varies with the gender of the buyer, and senior citizens get a rebate on registration charges.

Benefits of Stamp duty

  1. Registering a stamp duty makes the sale deed a proper legal document and makes it possible to submit the deed to the court as evidence. In case the document is lost, a duplicate copy can be produced. The buyer has to pay stamp duty at the time of registration.
  2. The buyer generally pays Stamp Duty

Stamp duty in Real Estate?  

Stamp duty in Real estate is on Sale deed, Partition Deed, and Lease Deed. If a lease deed is more than 12 months, it must be registered and pay stamp duty, otherwise, generally, lease deeds are for 11 months. Therefore, which means the document of the property is verified by a notary declaring the authenticity of both parties signing the documents.

Delhi Stamp duty

  1. Delhi Stamp Duty charge has been going on since the year 1908, which is a retardation charge.
  2. Like in Delhi, stamp duty is 6% if a property is registered in a Male’s name, 4% if in a female’s name, and 5% if in joint name. This is in case the property value is less than 10 lakh rupees. But if it is more than 10 lakhs rupees, both males and females pay equal stamp duty.
  3. The Registration charge is 1% of the property value.
OwnerStamp Duty
Male6%
Female4%
Joint (Male& Female)5%

How to pay Stamp duty?

The 3 methods to pay a stamp duty are as follows:

Method 1

Non-Judicial stamp paper. If stamp duty is 1 lakh, buy papers worth Rs 1 lakh. You will print the sale deed on stamp paper.

Method 2

Franking method – Print the sale deed on plain paper. Pay stamp duty in a cheque, cash, online, or dd draft. Then bank attests to the sale deed.

Method 3 –

E-Stamping – it will mention all details – generated online – Go to Stock holding corporation of India – www.shcilestamp.com. This will be paid at authorized centers. Collect e-stamp then.

Carpet, built-up, and Super built-up areas

When you go to buy a property, you may hear the term carpet area, built-up area, super built-up areas, and so on. This can be confusing for many buyers. Propertywala has put together this handy guide with definitions of these terms.

Towers At Greenville Apartments - Tower Block, HD Png Download -  1169x775(#5840675) - PngFind

CARPET AREA

A carpet area in simple words is the area where we can lay our carpet. It is an area in between external walls; it includes rooms, a kitchen, a toilet, a bathroom, and a staircase within the unit. The carpet area excludes balconies, service shafts and common areas. There have been some changes in the carpet area after RERA (REAL ESTATE REGULATIONS AND DEVELOPMENT ACT) came into effect in 2016. The internal walls of a building were not included under the carpet area in earlier versions of RERA, but they are now.

Next, it is important for buyers to determine the carpet area in an approved layout before making a purchase. This can help you understand how much carpeting will be included in your new home. So, before buying a property, ask your builder about the approved layout. And next is to compare two properties based on carpet area only for a clear understanding of the rate.

FORMULA TO CALCULATE THE CARPET AREA

The total area of the inner wall and floor is the carpet area.

BUILD-UP AREA

The built-up area refers to the entire area covered by carpet plus inside weight-bearing walls and outside walls if any. The term included areas that refer to external walls, attached balconies, verandahs, a service shaft area, and a servant room. Excluded areas are terraces, and common areas like lifts and stairs, etc. The walls of adjoining apartments will be factored into the building of your apartment at 50% of its build-up area. Built up area generally is approx. 10% higher than the carpet area.

FORMULA TO CALCULATE THE BUILD-UP AREA

The built-up area of a building is the total floor space, including carpeting, walls and balconies.

SUPER BUILD-UP AREA

When you purchase a property, you will hear about the term “super built-up area”. It means the build-up area of a flat and pro rata common area. For example, the total common space is 8000 sq feet among 8 flats in a complex, so the pro rata common area of a single apartment will be 1000 sq feet. Therefore, the common area includes built-up space like a lobby, lift shafts, staircases, pipe ducts, air ducts, and other covered common facilities. And the area which is not included in the common area is the roof terrace and open areas like parks and play areas as well as driveways. The approximately super built-up area is 25% higher as compared to the carpet area. Generally, it varies from 20% to 40% of the carpet area.

FORMULA TO CALCULATE THE SUPER BUILD-UP AREA

To convert the super built-up area into carpet area, calculate the loading factor, and subtract that from the Super built-up area.

LOADING FACTOR

The difference between the super built-up area and the carpeted area is referred to as the loading factor.

Therefore; Carpet area * (1- loading factor) = Super Built-up area

CALCULATION EXAMPLE OF SUPER BUILD-UP AREA

Let’s assume, the super built-up area of an apartment is 1,200 sq. ft. and the carpet area is 1,000 sq. ft.

1,000 X (1-loading factor) = 1,200

1- loading factor = 1,200/1,000

1- loading factor = 1.2

Loading factor = 1.2 – 1

So, the answer is 0.2 or 20%. As a standard, It is always in percentage.

IMPORTANT FACT TO KNOW BEFORE PURCHASING A PROPERTY

For your information, section 61 of the Real Estate Regulatory Authority Act (RERA) stipulates that promoters can be fined up to 5% of the total cost of the real estate project for giving false information or selling on the super area. It should be sold in the carpet area.

Process of Property Registration

We’ll discuss some of the main points on the entire process of registration of a property in India. Although this process is quite complex, it may require a lot of time and effort by the registry office to complete. So let’s start the process of registering a property in India with propertywala.

Karnataka Property Registration - Procedure and Charges - IndiaFilings

STEPS OF PROPERTY REGISTRATION IN INDIA:

  1. The first step is to choose the property and look for all the details in the property. Negotiate with the seller. Pay 10% booking amount. Then we have an agreement to sell.
  2. Buyers should check that there are no liens or other encumbrances on the property before they make an offer.
  3. Calculate Stamp Duty. Stamp Duty is the tax levied on the transfer of real property in the state. Stamp duty rates vary from state to state. It’s calculated either on the circle rate or on the market rate, whichever is higher. It’s generally 3-10% of the property value and 1% is the registration charge.
  4. There are three methods for paying stamp duty, as follows:
    1. Method 1 – Non-Judicial stamp paper (picture). If stamp duty is Rs. 1 lakh, buy papers worth Rs 1 lakh, where sale deed will be printed on an official stamp paper.
    2. Method 2 – Franking method – Print the sale deed on plain paper. Pay stamp duty in the cheque, cash, online, or DD draft. Then the bank attests to the sale deed.
    3. Method 3 – E-Stamping (picture) – it will mention all details – generated online – Go to Stock holding corporation of India – www.shcilestamp.com. Payment will be made only at authorized centers. Collect e-stamp then.

HOW TO CALCULATE STAMP DUTY:

Now, buyers should also be aware of the Stamp duty calculation. They should also know that this tax is payable when they register their property.

For example, if the actual value is Rs. 40 lakhs and the circle rate is Rs. 50 lakhs, then you have to pay stamp duty at the highest rate out of the two. Hence, in this example, because the circle rate is greater than the actual rate then you have to pay a stamp duty of Rs. 50 lakhs.

And in another case, let’s assume that you bought a property in India with a market value of Rs 90 lakhs and the circle rate was Rs 80 lakhs. In this case, you would have to pay a stamp duty of Rs 90 lakhs. Therefore, you can calculate your stamp duty. In addition, you can also estimate stamp duty online because it varies differently and is higher in large cities and towns than in small towns or cities.

5. The next thing is a draft and print sale deed or conveyance deed, or gift deed. It mentions all details like name, address, age of both the buyer and seller, etc. It provides details about payment, including through cheque, cash, or any other method. After that, you have to print the sale deed on stamp paper and then sign each page of the sale deed. Two witnesses also have to sign the last page of the sale deed.

6. After drafting and printing the sale deed, you must register it at the sub-registrar office. The office should be located in a fixed zone of your property’s locality. To schedule an appointment online or to obtain a token number, contact the sub-registrar office by phone or in writing. Both buyer and seller should attend the registration; witnesses should be present as well. If either of them cannot attend, they must appoint someone to act on their behalf with power of attorney. All parties should bring documents such as an Aadhaar card and an identity document. Three photographs will be attached to the sale deed, and both buyers and sellers will be asked to sign their names in the presence of a sub-registrar. Fingerprints will also be taken for security purposes.

7. After that, you have to collect the registered sale deed. The deed can be collected within 15-20 days. If you took a bank loan, the bank will collect the original deed.

8. Now that the registration process is over and the property transfer is complete, you need to change the name in the land records. This process is called a mutation. If your property is located in a rural area or outside municipal limits, you will have to change the name in land records. The mutation has different names in different states. For example Jamabandi in Haryana, Punjab, and Rajasthan; Khatauni in Uttar Pradesh; 7/12 in Gujarat and Maharashtra; and Khatian in Orissa, West Bengal, and Bihar. After you register your property, the whole process of registration of your property is completed.

Why Attapur deserves your Investment

In the city of Hyderabad, Attapur is now developing as a new suburb which is an ideal location for the residential complexes now. The main reason behind this is the presence of several different colleges which makes it an ideal location for the students to live in. It is also really close to Jawahar Nagar, the educational hub of Hyderabad. Not only the students but the people who work in the IT Hub of Hitec City also prefer this place as it is in close proximity given the excellent transportation and the development of roads. The fact that Attapur provides people with a lot of housing options that too in affordably large sizes, make the residents travel 10km each day to and fro for their work.
Many people say that Attapur is the centre of their work and other public infrastructure needed by them. The location is in close proximity to their offices, their children’s schools, Airport, Koti and Secundrabad. The main purpose of each and every resident is solved because of this and people find no problem in travelling a few kms for every work present in equal distances.
When it comes to water and transport, the PVNR Expressway connected to the outer ring road makes it really easy for the people to commute.

Rates to take a step down alongside Noida expressway

In the NCR region, that is subtly attached to the capital region of India, Delhi there extends two expressways that are built to let the residents enjoy the great community and work from far off places while travelling through these roads. The eastern region has been accurately acquired by the 22km long through Noida and Greater Noida. The other one runs for 18km in the regions of Dwarka.

All these expressways are developed to join the regions of Delhi NCR in a better way providing the areas extending adjacent to them to the real estate developers to create more and more property in Noida and in Dwarka.

These lands were also supposed to be given to the developers who want to build commercial spaces and give away office for rent in Noida, Greater Noida, Dwarka, and Gurugram. This, however, made both the regions a large hub for the working class people who migrated here from all over the country. This gave a major boost to all the realty developers to build more and more residential complexes.

As soon as the areas were changing into residential complexes, the southern areas started to experience water and sewage problems. Developers were unable to provide their residents with the daily needs. However, the eastern region thoroughly enjoyed the regular facilities of water and sewage but could not gather proper funds. These developers tracked the funds from the farmers and this became a major reason to manage all the funds and thus fulfil the increasing demands of people. Also, after the demonetization process, those launched flats which were left in the middle of the construction period were unable to be delivered on the expected date of delivery. One Unitech project called Grande, located in Greater Noida was launched in 2007 and even after 10 years, it could not be completed due to inappropriate funds. Now as the government orders all the realty developers to increase the supply, these well-built flats would be sold at much lesser prices given its history of in accomplishment. These flats are built along with the Yamuna Expressway and were targeted towards those who wanted to have the luxury as they were built across an 18 hole golf course.

Due to these reasons and the post demonetisation effect where people just stopped thinking of following their dreams and the wish to buy a house vanished all of a sudden, lowering the rates seemed to be the only option. These low rates would fill the empty flats and would decrease the number of new flats that were to be constructed to meet the demands after the Union Budget of 2017.

Pune to set out new rules

The district consumer court has set out a new rule that an occupancy certificate will be issued by the municipal corporation in favour of an interested flat buyer, which will be sufficient to say that construction activity is successfully completed as per the sanctioned plan.
The court also ruled that a flat resident cannot seek his case to be treated as a “representative complaint” without first complying with the necessary requirements of such a plaint. Section 12 (1) (c) of the Consumer Protection Act needs a complete publication of a notice at the time of filing of the respective complaint about the complaint to be treated as a representative case.
A bench of O G Patil , V P Utpat, and Kshitija Kulkarni on Wednesday rejected the complaint by Kondhwa Khurd resident Anand Ranjalkar, who alleged that the builder of their housing scheme delivered him a 1bhk flat in Pune, which was of lesser area than it was originally agreed for, He also claimed that the builder had failed to secure a completion certificate. He also referred to common reliefs relating to the developer’s “failure” to form a society and execute a proper conveyance programme.
In July 2007, Ranjalkar had openly purchased a property in Pune under ‘Kumar Prithvi’ scheme, developed by Sukumar Township Development Private Limited in Bhavani Peth, Pune for Rs 28.7 lakh. The construction firm, as said and confirmed, delivered property to him on March 3, 2009.
In July 2011, after two years of getting possession, Ranjalkar filed a consumer complaint alleging the super built area of the flat was 39.87 sqft lesser than the area that was committed to him in the agreement. He said that he made the measurements done by an architect.
Lawyer Sunita Kinkar, representing the firm that supplied the possession, argued that Ranjalkar was bound by the agreement, to refer any further dispute to an arbitrator and that he did not comply with the norms for converting his complaint into a representative case for seeking common reliefs.
The bench, therefore, rejected Ranjalkar’s application, filed counter-arguments, for publishing a notice of a representative complaint first and held that the matter will then be treated as an individual complaint. “The complainant, in his individual capacity, cannot seek his justice as regards formation of society and execution of conveyance deed, etc. The after effects of the complainant will remain only as regards shortfall in area and completion certificate,” it held.

5 reason you should buy a property in Noida

After the utterly clumsy place of the capital region of India, Delhi and the densely overcrowded place for offices, Gurugram people are quite as well left with a choice of Noida. This is the reason that the residential sector of Noida Real estate is highly increasing since the past two decades. Noida is considered as a cheap and easy city to live in provided its easy connectivity to Delhi, Faridabad, Agra, and Haryana.
Noida has been considered as the most affordable place to live in given the high number of affordable flats here. There are many reasons that add to the fact but if we want to name a few we can easily do so by guiding the basic points.
The first one can be the extremely well maintained and thoughtfully built infrastructure. The infrastructure that has built the city is the basic reason for more and more citizens coming here. The excellent infrastructure makes it capable of being the next best thing in the world. The availability of lands for residential, commercial as well as infrastructural facilities is something that makes it top the list leaving Delhi and Mumbai behind.
Second reason is the reputed faces of developers who are eyeing in this place to make their new launches. Builders like Supertech, Unitech, Ansal, Emaar, MGF and now Godrej has made their new launches in Noida and Greater Noida. These flats suffice all the segments of the society and promise to be affordable with the availability of luxury.
Third and the most important reason that helps people to relax and invest in these lands is new rules against Forgery. New and quick rules have now been applied to the forgery cases of land. Earlier, the land disrupts were handled by the court’s jurisdiction which always tends to stretch such cases to a number of years, but now a sigh of relief has approached when all these cases are being handed over to the stamps jurisdiction.
The fourth best reason would be the easy connectivity of Noida to other regions like Delhi, Ghaziabad, Gurgaon, Agra. The major plus point Noida has is the rapid availability of Metro from Delhi to Noida. Also, the ongoing construction of Metro from Delhi till Greater Noida via Noida will add a golden point to all these and make it more convenient for those who travel till Greater Noida and will also decrease the traffic on roads.
The fifth point is for those who have a property in Noida or are living on rent flats in Noida. The major availability of marketplaces throughout Noida makes it very easy and accessible to live here.

Kolkata real estate take a hike after Price protect scheme

With Kolkata residential market still trying to rise from the after effects of demonetisation, developers have started applying their tricks to attract more and more customers by offering them innovative schemes.
The price protect schemes that were launched recently with the budget, in which the interested consumers would enjoy the benefit in case there will be any decrease in property rates, have helped in increasing the demands by 15% after the two months that followed the demonetisation.
Jitendra Khaitan, CMD of pioneer Property Management Ltd. Have stated that the Market is facing a positive growth and that approximately 50% hike in queries is expected along with a hike of 10-15% in actual sales. However, the price protect scheme is temporary, it will still effect the market majorly and increase the real estate market to a great extent in profit.
Khaitan also put out the word that these schemes are highly helping the market recover from the downfall after demonetisation. After the demonetization struck the nation there was almost up to 40% drop in queries and sales of homes in and around Kolkata as buyers waited for a fall in real estate prices.

Property Exhibition To Be Held In Kuwait On Jan 11 & 12

Builders from across India will display their new launches in Property Exhibition which will be held in Kuwait on January 11 and 12. The builders hope to find some NRI customers.

Property Exhibition The platform to gain firsthand information

Property Exhibition: The platform for NRIs to gain firsthand information.

Indian Property Exhibition will be held at Ramada Hotel in Al Rigga, Kuwait. The exhibition will be opened for the visitors from morning 10.45 am to evening 8.30 pm. This is the 23rd Indian Property Exhibition  held in Kuwait.

Mantri Group and North Town will sponsor the property exhibition, a meeting point for the home buyers and builders. Nearly 100 projects will be displayed. Properties from tier I and tier II cities are also expected to be displayed. Continue reading

Real Estate Firm Sued By SWB For Property Damage

AP State Wakf Board (SWB) plans to sue a real estate firm for damaging its property. Wakf Board officials told that a real estate firm has encroached upon some of Wakf properties in Lakdi-ka-pul.

wakf board sues real estate firm

Real estate firm faces sue from the Wakf board.

The base of the case begins with GHMC (Greater Hyderabad Municipal Corporation) sanctioning a real estate firm to construct a commercial structure near Mumtaz Mansion in Lakdi-ka-pul. The GHMC sanction of a G+4 commercial building was granted to an extent of 2125 sq. m.

The real estate builder soon started foundation works at the site. Later it came to light that some graves were damaged while foundation works were going on. This was reported to the chief minister as well. Continue reading

Troubled Air India to Monetize its Real Estate Assets

Air India plans to monetize its real estate properties to overcome its present financial crises. Air India hopes to raise sufficient fund by monetizing its properties or real estate assets.

Air India is all set to raise the fund required for overcoming the current financial crises. The National Carriers have already instructed DTZ International Property Advisers Private Limited, the real estate consultant of Delhi. Continue reading

How to Invest/ Purchase Wisely on Resale Property?

How can you make a successful purchase of resale property? Do you purchase resale property as an option of investment? These tips will help you invest/ purchase wisely on resale property.

Useful Tips for Resale Property Purchase

Useful Tips for Resale Property Purchase

Your decision to purchase resale property must be supported by your purpose of purchase. Your purchasing purpose is of greater priority and importance.

Probably when you consider purchasing a property to settle down, then you have to consider the proximity to office site, close educational institutions needed for your children’s education, and so on. The area’s growth is not as mattered highly as your convenience is. Continue reading

Budget 2012: 1 per cent TDS imposed on property sales.

The government has proposed one per cent TDS (tax deduction at source) on transfer of immovable property if the sale value exceeds Rs 50 lakh in urban centres and Rs 20 lakh in other areas.

Finance Minister Pranab Mukherjee said in his Budget speech that the measure is proposed in the Budget and is being taken to “deter the generation and use of unaccounted money.” Immovable properties, other than agricultural land would be covered under the new provision.

The application of TDS would be effective from October 1 this year. It has been provided that transfer of property would not be registered unless the buyer furnishes proof of deduction and payment of TDS.

At present, tax is required to be deducted at source by the transferee on transfer of immovable property by a non- resident. But, there is no such requirement on transfer of such property by a resident except in few cases, it added.

Reacting to the proposal, the apex realty body CREDAI said that this would lead to increase in property prices.

“It looks like that the proposal of TDS would apply on transactions in the secondary market and not on sale of builder’s flat,” Confederation of Real Estate Developers’ Association of India (CREDAI) Chairman Pradeep Jain said.

The new proposal intends to collect tax at the earliest point of time and have a reporting mechanism of transactions in the realty sector.

The provision would apply if the consideration exceeds Rs 50 lakh if property is situated in “specified urban agglomeration” and Rs 20 lakh if property is situated in any other area.

Income Tax Department to Probe Suspected Real Estate Deals.

The Income Tax department is looking into all the alleged deals of real estate to check the contribution of black money and tax dodging of such dealings in the last few years. The process starts in New Delhi and eventually would move to other metros.
“Analysis of the Property deals will start with New Delhi and appropriate actions would be taken as required”, Sudhir Chandra, Chairman CBDT said. In the past few years after IT department had received complaints about the black money involvment, IT department has raided many real estate developers, including the major ones.
IT officials says that they had uncovered lot of black money from most of the builders. A new process is being levied which would keep an eye on sources of funding for developers projects which includes individuals as well as property dealers.
Approx 40-60 percent of the cash componenet is unaccounted on papers. This helps builders to avaoid tax on cash  incomes. The deaprtment is focusing very closely more on dealers rather than small ones. The amount of assets detained by the IT department had been more than doubled in the last four years, while the number of raids had came down. IT department searched 529 groups in 2006-07. The number of searches dropped to 454 in 2007-08, 429 in 2008-09 and 409 in 2009-10.

Realty Now Attracting Textile Firms

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Since the land rate are rising and realty seems to be the most profitable market, many of the top textile firms are also attracted to this business and are thus generating additional revenue streams by developing or selling precious real estate.

Some of such firms are Provogue India, Century Textiles & Industries, Bombay Dyeing & Manufacturing and Alok Industries. These all aim at boosting the cash flow and reducing debts.

In the last year, the cities like Mumbai and Delhi have gone through a big hike in property prices. Across the whole world, Mumbai is rated as the most expensive office location.

The chairman of brokerage CNI Research, Kishor P Ostwal said that a lot of companies own huge land banks but the valuations in the market are given only to those who aim to develop these land banks and not just own them.

Thus, Century and Bombay Dyeing are both rated as a ‘buy’ by Ostwal since they have premium large tracts in central Mumbai.

Real estate is always an asset

Improvement in the overall economic sentiment coupled with liquidity due to a recent upswing in the equity markets has renewed consumer faith in real estate.
Developer Vijay Wadhwa advises parents to go for real estate investment for their child’s future. He further said, “Real estate is the best long-term investment. It remains in your child’s name, and the appreciation in value over the years makes it a safe and secure option. Or even while planning for your old age, real estate is always an asset”.

Looking at the current market scenario, Wadhwa points out that market sentiments are improving, and real estate is among the biggest beneficiaries. He said, “After witnessing slow movement over the past few months, Mumbai is seeing an increase in demand in the residential sector. Additionally, increasing focus on affordable housing for low and middle income groups has resulted in the launch of several low cost projects, most of which are concentrated in the peripheries of Mumbai. This has also opened up new investment options for those who did not have bigger investment units or major amounts that could be invested”.

Further he says, “Softening of home loan interest rates and correction in capital values by some developers has resulted in the anticipation of increased demand during the festive season,” says Narpat Mehta, director, Kanakia Group. “We are expecting an increase in demand from both end users as well as investors”.

Real Estate Looking Forward

The reactions to real estate market are mixed. The looking up of this market in the US economy has raised some hopes in the Indian markets too. Various real estate companies have expressed that the market is looking up, and is likely to improve in the coming days, but some companies are skeptical and want to see actual results flowing in before commenting.
There has been some increased activity on the real estate market front in the recent weeks and this has raised some hopes. The media also reported that the prices of houses would not drop down further indicating that there is stability in the market.
The following weeks would be crucial and they could decide which way the market would go in the coming weeks.

Loans set to get costlier

The Reserve Bank of India may step up its efforts to pre-empt another bubble in the local property market by increasing the cost of funds for the commercial real estate sector by up to 200 basis points.
According to an RBI official, “We are looking at a hike in the risk weight to the commercial real estate segment to 125% as a measure to ward off another bubble in the real estate segment and to ensure high credit quality”.
These days interest rates on most of the loans are between 7.5% and 12.5%, depending on the credit rating of the borrowing company. The current move will make loans to this segment costlier by 75-200 basis points.
Bank finance for land development is classified as CRE if the source of repayment would be lease rentals. The segment has started showing signs of revival after an earlier-than-expected recovery of the country’s economy from a demand slump.
The measure could affect the financial health of some of the largest real estate firms of the country, which were forced to sell land banks and projects to meet their cash requirements. A similar move by the RBI in 2007 had resulted in a crash in property prices. Though the central bank was criticised for the measure, the global financial crisis in 2008 proved that it was a step in the right direction.
Till mid-November last year, the risk weight to loans secured by commercial real estate was 150%, which was brought down to 100% by the banking regulator to facilitate credit flow to the sector that was reeling under a demand slump.
High exposure of some banks in the segment may have prompted RBI to consider such a measure, said the chairman of a government-run bank. “A major chunk of the non-food credit off-take in the recent months went to the real estate segment,” he said, requesting anonymity. However, an increase in risk weight by 25% points will have only limited impact, he added.

PDL looking torward tier-II cities

Parsvnath Developers Limited is looking toward tier-II cities and following the strategy, PDL announced Parsvnath City at Saharanpur.  It will offer plotted development, independent Floors and expandable villas at affordable prices.  Spread over more than hundred acres, Parsvnath City, Saharanpur is strategically located on Delhi road. First of its kind project will offer independent floors in affordable range starting from Rs 9.50 lakh. The project will comprise of plots in various sizes of 201, 300, 402 and 502 square yards. The independent floors will have the options of 2 bedroom, 3 bedroom and 3 bedroom with study room units and option of expandable villas are also available.
Parsvnath City will have fully fledged infrastructure wide well lit metaled roads and solid waste management.  The township will also have Group Housing, School, Community Center and Mall. The realization from the project will be about three hundred fifty crore rupees spread over 2 years. The development of the township is planned to be completed in 2 years.