Q: What should a buyer keep in mind while purchasing a residential flat?
A: Some important points to keep in mind while buying the flat:
- Location of project
- Electricity and water supply
- Quality of construction
- Reputation of the developer
- Features and amenities
- Total cost of ownership
Q: What is meant by carpet area, built-up area & super built-up area?
A: Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual used area of an apartment/office unit/showroom
Built-up Area is the carpet area plus the thickness of outer walls and the balcony.
Super Built-up Area is the built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. The plinth area along with a share of all common areas proportionately divided amongst all unit owners makes up the super built-up area. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.
Q: Should one inspect a property before buying it?
A: Yes. It is important to inspect the property; probably this is the largest single investment you will ever make. You should know all the details of the property and need for any major repairs / modifications before you buy. You can crosscheck the commitment made by builder and actual implementation. A close inspection points out the positive aspects of the property, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.
Few important points to check while inspecting…
- Plumbing systems, drainage, water faucets and sanitary fittings.
- Electrical systems, circuit breakers, wires, capacity of the electric meter, functioning of light fittings
- Roof, walls, ceilings, floors, paint work.
- Foundation, basement and visible structures.
- Doors and windows, latches, locks.
- Structural stability of the building.
Q: What things should be kept in mind while buying residential or commercial property?
A: Here is a small checklist for buying residential or commercial property:
- Crosscheck current market rates of property in the vicinity and last known transactions, current market trends.
- Distinguish between negotiable and fixed terms and conditions of the contract, eg. price, payment schedule, time of completion, etc.
- Check for clear titles of the property. Ask for photocopies of the all deeds of title related to the property to be purchased. Examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any on the property must be cleared before completion of purchase of the property.
- Finalize commercial terms of purchase of the property. Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property.
- Ascertain outgoings to be for the property i.e. property tax, water and electricity charges, society charges, maintenance charges.
- Request Vendor to obtain, if applicable, consent, permission, sanction, no objection certificate of various authorities such as the (a) society (b) the income tax authority (c) Municipal Corporation (d) the competent authority under the Urban Land Ceiling and Regulation Act (e) any other authority.
- If you are looking for loan for property purchase, contact financial institutions and ask for a pre approval letter, many options are available for loans.
- Permanent Account Number of Vendor and Purchaser under Income Tax laws Payment of stamp duty on the formal agreement or document for transfer of the property, signing by both the Vendor and Purchaser and registration. After payment of the entire sale price, take over legal possession of the property and check the receipt of original documents from the Vendor of the property.
- Make sure that property holder’s name is changed in all related records, e.g. society, electricity company, municipal corporation, builder’s office etc.
Q: What is a Sale Deed?
A: Sale Deed also known as conveyance deed is a document by which the seller transfers his right to the purchaser, who, in turn, acquires an absolute ownership of the property. This document is executed subsequent to the execution of the sale agreement and after compliance of various terms and conditions detailed in the sale agreement.
Q: What is a Draft Sale Deed?
A: A draft Sale Deed, containing full details of the parties, advance amount paid, mode of balance amount payable, receipt of the balance amount by the seller, handing over the original documents of the property, handing over the possession of the property, handing over the authorization letter to transfer power and water meters, signing of the application for transfer of khatha, title of the seller of the property, indemnifying the purchaser in case of defect in the title, easement rights, will be prepared by the purchaser's advocate. Such draft Sale Deed should be captioned as draft Sale Deed and shall be signed by the purchaser's advocate.
Q: What as a Leasehold Property?
A: Leasehold Property is property leased to a lessee for a stipulated period. The Lessee pays lease premium and annual lease amount as fixed and mutually agreed by the Lesser and lessee. The land ownership rights remain with the Lesser and a prior sale-permission is normally required if you plan to transfer the property.