Q. What is carpet area?
A. As per Real Estate (Regulation and Development) Act, 2016, “Carpet Area” means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under service shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.
Q. What kind of charges/taxes is mandatory at time of purchasing property?
A. In addition to the price of the property, the buyer needs to pay the registration cost, stamp duty on registration, service tax, Value Added Tax while buying a property.
Q. What documents and formalities are required while buying property?
A. The documentation required while purchasing a property includes a blue print of the building plan/layout, certificate of commencement, certificate of completion, permission of non-agricultural use of land in case the land is originally an agricultural land. A 7/12 extract in case of land property [specific to states like Maharashtra] and a NOC from the builder are also needed. In case of resale, previous sale deeds are a must. All these documents should be thoroughly verified by a competent advocate.
Q. Things you should check at the time of signing the agreement?
A. Before signing the purchase agreement, the buyer should check the details like base price mentioned, additional charges like PLC, club membership, carpet area along with facilities, taxes applicable, payment mode, occupation certificate, building insurance, schedule of possession and penalty clause in case of project delay.
Q. What should a consumer keep in mind while purchasing a house?
A. There are many factors to be considered at the time of property purchase like the locality or the area of the home, whether all the basic and civic utilities are available, transport facilities, construction quality, the carpet, built-up and super built-up area of the flat, provisions of basic features like water and power supply, and most importantly, reputation of the developer.
Q. What is stamp duty?
A. Stamp duty refers to the tax paid to the government just like sales tax or income tax and should be paid on time and in full. A stamp duty paid document is an important and legal instrument to be taken care of.
Q. How can a buyer be protected if the project is delayed?
A. As per a ruling by the National Commission, the buyer is entitled to get a refund of the amount along with the interest and compensation in case of project delay. He can also lodge a customer complaint and take legal help.
Q. What is the difference between power of attorney and registry?
A. Registry is the database which stores all the important documents etc. Whereas, Power of Attorney refers to the right/authorization given by the owner to someone whom he trusts and to whom he assigns the power and rights to deal with the property under inevitable conditions.
Q. What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any?
A. A Freehold Flat is the one which has a whole sole owner of the property with the ownership being complete and unconditional as per the regulations of the law of land and does not have any kind of involvement of any lessor/lessee.
Q. Is commercial property worth buying?
A. Commercial property is an attractive choice for investors because it potentially offers healthy capital growth, a regular monthly income, and greater security than investing in stocks and shares.
Q. What is commercial real estate investing?
A. Commercial real estate is a property that is typically leased out for business and retail purposes. Investing in commercial real estate involves the purchase or development of properties that have been designed with the intent of housing commercial tenants
Q. What is a good return on commercial property?
A. A good yield usually stands between 5% to 10% for commercial properties, which is higher than the yield generated from a residential property, which lies between 1% and 3 %.
A. Basic sale price is the basic price of the property. This cost does not include other charges like EDC/IDC/IFMS/EEC/PLC/Club membership and car parking.
A. Per Square Feet/Foot
Q. Development Charges
A. Developers have to pay these charges to the government for civic amenities such as roads, water/electricity supply, sewerage and drainage. The development charges are fixed by the local authorities and are passed on to buyers in proportion to the built-up area of their properties.
Q. PLC or Preferential Location Charge
A. Is the extra charge paid to a unit which has a better location within a particular layout or complex.
Q. IFMS (Interest Free Maintenance Security)
A. One time charge levied by developer to maintain the society. This is a common pool of funds which works as a maintenance charge.
Q. EEC and FFC
A. EEC is external electrification charge and FFC is fire fighting charge and these are levied for obvious reasons.
A. Common Area Maintenance which includes hallways, pathways and utilities. CAM fees is accumulated by the landlord from tenants to cover maintenance.
Q. FAR or Floor Area Ratio
A. The maximum amount of construction allowed on a given plot of land. This is purely dependent on the plot area and would vary from one locality to another based on different factors.
Q. Sale Deed
A. Sale Deed provides the buyer an absolute and undisputed ownership of the property.
Q. Built Up Area
A. Built-up area denotes to the entire area of the floor including carpet area, walls, lobbies/corridors, atrium areas and basement.
Q. Carpet Area
A. The actual usable area within the walls of the unit is Carpet area.
Q. Super Built Up Area
A. Super built-up area includes common amenities, such as the area of lift shafts, lobby, and corridor, proportionately divided among all flats. The common usable areas, such as a swimming pool, garden and clubhouse may also be included in it.