FAQ

Q.  Which documents are to be verified before purchase of a Flat?
A.  Before you purchase a flat, you have to have a title and document search conducted by a competent advocate. 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

Q.  What is the difference between built up areas, super built up area, and carpet area?
A.  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.

Q.  What are all the important documents one should check before buying any property?
A.  If you buy 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.

Q.  Who is liable to pay Stamp Duty-the buyer or the seller?
A.  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.

Q.  In whose name are the stamps required to be purchased?
A.  The stamps are required to be purchased in the name of any one of the executors to the Instrument.

Q. 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?
A.  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 Stamp Duty is payable on the agreement value of the property or the market value which ever is higher.

Q.  Who is the appropriate authority for knowing the market value of the property?
A. 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.

Q. What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any?
A.  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.

Q. 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?
A. When you are buying a flat from a builder in a building under construction, you have to check the following:

• Approved plan of the building along with the number of floors.
• Ensure that the floor that you are buying is 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 the title of the land ownership with the help of an advocate.
  
• 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.
  
• Check specifications given in the agreement to sell of the sale brochure. Is he providing the same actually on the ground or not?
  
• Check the reputation of the builder.
  
• Ensure that urban land ceiling NOC (if applicable) has been obtained or not.
  
• NOC from water and electricity authorities also have to be obtained.
  
• NOC from lift authorities.

Q. How does one determine the market rent?
A. 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.

Q. How many months rent can the landlord take as deposit?
A. Three months. In case a tenant is not protected by the Rent Act.

Q. What are the procedure to ask him to vacate and what is the notice period required to be given?
A. Normal procedure is to send a notice to the tenant, failing which a court case may be filed which usually takes 10 to 20 years to reach a verdict.

Q. 70% of the tenants are ready to form a society. Is there any new provision in the new rent act for forming a society?
A. There is no new provision in the new Rent Act regarding the prescribed percentage of tenants willing to form a society.

Q.  How much housing loan can one get?
A.  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.

Q.  What are the tax benefits that are available if one avails of housing loan?
A.  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.