Why SpaceCentric?
We are experts in real estate to guide you throughout the property buying process. We are on your side and choose the best for you keeping in mind your requirements, budget and future scope of investments.
What is the difference between built up area, super built up area, and carpet area?
Carpet Area: Area between the walls. Carpet area must have permanent roof (slab) over it, at normal height. Carpet area is calculated by multiplying dimension of room, i.e. length x width. Total carpet area is calculated by adding carpet areas of all rooms and passages inside the house.
Built up Area: This includes the area of the walls also
Super Built up Area/Saleable area: This includes the area that is not exclusively meant for the buyer. It includes the shared area like staircase area, elevator, clubhouse, etc.
What is difference between the lease, the leave and licence agreement?
A lease is the contract that one party conveys a property to another for a specific period of time. A license agreement is a legally binding contract between the owner and an individual or organization to enable use of property for a fee. During this licensed time period, this individual or organization has the right to use anything found within the entire property, such as cable lines or appliances left in the dwelling.
A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.
Leave &License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee’s part. It merely gives the licensee the right to use and occupy the premises for a limited duration. Such agreements can be signed for up to five years, but a time period of 11 months (or more) is common.
What is the freehold property?
The property that is free from hold of any entity except the owner is Freehold property.
Freehold property can be defined as any estate which is “free from hold” of any entity besides the owner. Hence, the owner of such an estate enjoys free ownership for perpetuity and can use the land for any purposes however in accordance with the local regulations. In a free hold property, there is no encumbrance to the absolute title of the property. A freehold property can be transferred by registration of sale deed.
On Selling a flat and buying a new one bigger in size, what are the taxes on capital gains and how do I save it?
If you purchase a new flat within two years of the date of sale of the original flat and invest the entire amount of capital gained into the new flat, you will not have to pay any capital gains tax.
Who is liable to pay Stamp Duty-the buyer or the seller?
The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary.
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 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 whichever is higher.
What are the important documents and permissions that I should check with the builder for a building under construction to make sure the genuinity of the project?
You have to check the following:
- Whether the Project is approved by RERA
- Title deed:This document will tell you whether the builder owns the property being sold and has the right to sell the property.
- Intimation of disapproval (IOD):This is a set of permissions which must be obtained by a developer at various stages of construction. ‘This would involve acquiring approvals and a No Objection Certificate (NOC) from various departments such as the Storm Water and Drain Department, Sewage Departments, Forest Department, Environment Department, Traffic and Coordination Department, Chief Fire Officer, Airport Authority and Pollution Board, among others.
- Commencement certificate (CC):This is a document which must be issued by the local authorities and legally allows a builder to start the actual construction work. Shveta explains that this is important as any construction without procuring a CC is illegal.
- Encumbrance certificate:This can be obtained from the office of the registration authority (the sub registrar’s office) and tells you whether the property carries any legal or monetary liabilities or has any litigations pending. It can go as far back as 30 years.
- Approved layout plans:The layout plans must be approved by the appropriate planning authorities. Home buyers need exercise caution as there have been cases where developers deviated from the approved layouts, by adding extra floors or reducing open areas.
- Purchase agreement:You should go through this document carefully to make sure it includes everything you were promised. You can only hold a builder or promoter legally accountable for what is in the purchase agreement, not what has been verbally promised to you. The agreement should contain all major details of the construction project such as the project specification, apartments, payment terms, completion deadlines and the type and amount of penalty, should any party default. The agreement should also contain a clause to transfer the common areas to the society. This ensures the plot remains with the original owners and that the developer cannot engage in further construction on this land.
- Occupancy certificate (OC):Issued by local authorities, this certificate states that the property has been constructed in compliance with the provided permissions. At this stage the developer would have completed all necessary water, sewage and electrical connections.
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 by laws 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 a sale deed?
A sale deed also referred to as conveyance deed is the main document in a transaction of sale and purchase of a property. It acts as a main legal document that evidences the sale and transfer of the ownership of property in favour of buyer from the seller.
The sale deed is the main document by which a seller transfers his right on the property to the purchaser, who then acquires absolute ownership of the property. It is also referred to as the conveyance deed. The buyer should ensure the title of the seller before the execution of the sale deed.
What is an agreement to sell?
An agreement of sale constitutes the terms and conditions of sale of a property by the seller to the buyer.
An agreement to sell is an important document in the process of sale and purchase of property. This agreement contains the terms and conditions agreed upon between the parties and binds them. An agreement to sell is the basic document on which a conveyance deed is drafted.
