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 approved layout plan, approved building plan, ownership documents, carryout search, etc
In whose name are the stamps required to be purchased?
The stamps are required to be purchased in the name of any one of the executors to the Instrument.
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.
Who is the appropriate authority for knowing the market value of the property?
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.
What are the risks associated in buying a flat on Power Of attorney (POa) basis?
Purchasing a flat on a POa basis is not permitted under the law of the land.
Is a POa revocable?
Yes, a POa can be either revocable or irrevocable, depending on what sort of a POa one has made.
What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any?
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 lesser / lessee involved.
What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any?
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 lesser / lessee involved.
How to 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 ?
Regarding authenticity of documents, again, you have to take the help of an advocate to verify.The documents can also be verified from the registrar/sub registrar office of that area.
A flat in a Co-op Housing Society is to be gifted. What are the legal formalities? What about stamp duty?
Gift of an immovable property is considered as a 'transfer' under the provisions of the TOP act and you have to 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.
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 genuinity of the builder?
When you are buying a flat from a builder in a building under construction, you have to check the following:
1. approved plan of the building along with the number of floors.
2. Ensure that the floor that you are buying is approved.
3. 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.
4. Check the building byelaws as applicable in that area and ensure that the builder is building without any violation of front setback, side setbacks, height, etc.
5. Check specifications given in the agreement to sell of the sale brochure. Is he providing the same actually on the ground or not?
6. Check the reputation of the builder.
7. Ensure that urban land ceiling NOC (if applicable) has been obtained or not.
8. NOC from water and electricity authorities also have to be obtained.
9. NOC from lift authorities.
What is the difference between built up areas, super built up area, and carpet area?
Carept 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/Super 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.
How does one determine the market rent?
There is no prescribed manner but it can be easily found out by approaching such people as the brokers, registration authority, and appropriate authorities etc.
How many months rent can the landlord take as deposit?
Three months.
How much housing loan can one get?
Housing loan will be sanctioned depending upon your repayment capacity and according to your income. Your spouse's income can be included, if you want to increase the amount of your loan. The maximum loan that can be sanctioned varies with housing finance companies and ranges from Rs.10 lakh to Rs.1 crore.
What are the tax benefits that are available if one avails of housing loan?
Tax benefits are available on both the principal and interest components of the loan as per the income tax act. The upper limit of the amount of deduction of interest repayment allowed from your gross total income is now Rs. 75,000 p.a.. Besides, Sec. 88 offers you tax benefits for principal repayments. The principal repayment amount included in the overall limit of Rs 60,000 offered by this section is Rs 10,000.
What is a fixed rate home loan?
Fixed rate home loan, is a loan where the interest rate is constant over the entire tenure of the loan tenure
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What is a floating interest rate?
Floating interest rate loan is a loan where the interest rate payable is linked to the market rate like the bank lending rate. as the bank rate varies, the interest rate payable by you will also rise and fall. Hence you will have to bear the risk of interest rate fluctuations; the floating interest rates offered are slightly lower than the fixed interest rates.
Tax
Is it necessary to obtain any permission, from the Income Tax authorities if I want to purchase any immovable property?
There is restriction on transfer of immovable property under Section 269UC of the Income Tax act.
Does the Indian Income Tax act offers any special incentive for purchase of residential property by obtaining finance either from banks or other financial institutions?
Under 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.
Whether the benefits attached to a residential property are also available to a commercial property?
No such benefits are not available for commercial Properties.
What are the formalities specified under the Indian Income Tax Law, if any, that one has to complete before or after selling any house property, commercial or residential ?
You have to obtain Permission u/s 230a of the Income Tax act if the value of the property to be sold is more than 50 lakh.
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