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What
are the documents
to be verified
before purchasing
a Flat ?
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Before
you purchase
a flat, you
must have
a title and
document search
conducted
by a competent
advocate.
This is not
a simple process
therefore
you cannot
do it yourself.
You have to
use the services
of a competent
advocate.
It is a professional
job to be
done with
professional
assistance
and equipment. |
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What are all
the important
documents one
should check
before buying
any property? |
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Before
purchasing a
property, you
have to look
at the approved
layout plan,
approved building
plan, ownership
documents, carryout
search, etc.
Contact an advocate
before you purchase
a property so
that he can
advise you. |
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How
can you verify
the authenticity
of the various
documents submitted
by the seller
of the house,
particularly
with regard
to the possibility
that the house
has not been
sold earlier
to a third party?
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Regarding
authenticity
of documents,
again, you
have to take
the help of
an advocate
to verify
whether the
documents
are true or
not. |
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What
is the difference
between built
up area, super
built up area,
and carpet area?
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Carpet
Area:
This is the
area of the
apartment/building,
which does not
include the
area of the
walls.
Built
up Area:
This includes
the area of
the walls also
Super
Built up Area:
This includes
the built up
area along with
the area under
common spaces
such as the
lobby, lifts,
stairs, etc.
This term is
therefore only
applicable in
the case of
multi-dwelling
units. |
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What
is Market Value
and who is the
appropriate
Authority to
approach in
order to find
out the market
value of the
property? |
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Market
value means
the price
at which a
property could
be bought
in the open
market on
the date of
execution
of such instrument.
The Sub-Registrar
of the area
in whose jurisdiction
the property
is located
is the appropriate
authority
for knowing
the market
value of the
property.
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Who
is liable to
pay Stamp Duty,
the buyer or
the seller?
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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. |
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On
whose name are
the stamps required
to be purchased? |
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The
stamps need
to be purchased
in the name
of any one
of the executors
to the Instrument. |
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Is
Stamp Duty payable
on the market
value of the
property or
on consideration
as stated in
the agreement?
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The
Stamp Duty
is payable
on the agreement
value of the
property or
the market
value whichever
is higher. |
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Which
instruments
attract payment
of Stamp Duty? |
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The
instruments
such as: Agreement
to Sell, Conveyance
Deed, Exchange
of Property,
Gift Deed, Partition
Deed, Power
of Attorney,
Settlement Deed
and Transfer
of Lease, attract
Stamp Duty on
market value
of the property. |
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Are
incidental charges
like brokerage,
registration
fees, stamp
duty and other
charges arising
out of sale
of house property
deductible from
profits arising
on the sale?
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Yes,
these expenses
are allowable
expenses from
the full value
of consideration
of the sale
of house property. |
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What
are the risks
associated in
buying a flat
on Power Of
Attorney (POA)
basis? |
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Purchasing
a flat on a
POA basis is
not permitted
under the law
of the land. |
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Is
a POA revocable? |
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Yes,
a POA can be
either revocable
or irrevocable,
depending on
the type of
POA one has
made. |
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What
do we mean by
a Free Hold
flat? What are
the advantages
and disadvantages,
if any? |
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A
freehold property
(plot or a flat)
is one where
there is a whole
and sole owner(s),
ownership is
full and unconditional
(within the
provisions of
the laws of
the land) and
there is no
lessor / lessee
involved. |
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How
to convert a
POA flat into
a Free Hold
one? |
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We
cannot convert
POA converted
into anything.
Leasehold properties
of DDA in Delhi
can be converted
to freehold,
as per provisions. |
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If a flat in
a Co-op Housing
Society is to
be gifted, what
are the legal
formalities
and what about
stamp duty?
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A
Gift of an immovable
property is
considered as
a 'transfer'
under the provisions
of the TOP Act
and you must
have the transaction
registered through
a Gift Deed
and pay stamp
duty as per
provisions of
the relevant
stamp act depending
in which state
the property
is situated. |
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Upon
buying a flat
from a builder
in a building
under construction,
what are the
permissions
and papers that
one should check
with the builder,
so as to ascertain
the genunity
of the builder? |
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When
you are buying
a flat from
a builder in
a building under
construction,
you must check
the following: |
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Approved plan
of the building
along with the
number of floors. |
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Ensure that
the floor that
you are buying
is approved. |
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Check
if the land
on which the
builder is building
is his or he
has undertaken
an agreement
with a landlord.
If so, check
the title of
the land ownership
with the help
of an advocate. |
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Check
the building
bylaws as applicable
in that area
and ensure that
the builder
is building
without any
violation of
front setback,
side setbacks,
height, etc. |
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Check
specifications
given in the
agreement to
sell of the
sale brochure.
Is he providing
the same actually
on the ground
or not? |
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Check the
reputation of
the builder. |
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Ensure
that urban land
ceiling NOC
(if applicable)
has been obtained
or not. |
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NOC from water
and electricity
authorities
also have to
be obtained. |
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NOC from lift
authorities |
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Buyers
/ Sellers 
