FAQ,s

What is the full form of FAQ in real estate?

FAQ Real Estate – Real Estate (Frequently Asked Questions) in India.

What should we see before buying a property?

The home buyer should check if the property has a sanctioned building plan from the local authority. The Completion Certificate (CC) or Occupancy Certificate (OC) issued by the local authorities on the completion of the project, prove that the property had been constructed as per the approved layout and building laws.

What precautions should be taken while buying a property?

Title of property
Clear title to a property is one of the most important factors to be considered before purchase. There are various means to investigate the title such as: (i) by studying the documents of title to ensure that the owner has proper ownership to the property.

Can my father buy property on my name?

Property purchased in Minor’s name becomes the absolute property of the Minor on attaining majority. No other Legal Heirs (including legal guardian or father or property purchaser) can make a claim on the property of the Minor.

What is the basic of property law in India?

Real estate in India is governed by multiple laws that vary across States. Some vital laws impacting the country’s realty landscape include the Real Estate (Regulation and Development) Act, 2016 (RERA), the Transfer of Property Act, 1882, and the Registration Act, 1908.10-May-2023

What happens to flat after lifetime?

What happens to apartment after 50 years? Multi-story flats are typically governed by owners’ organisations. Regardless of the building’s age, whenever a majority of them decide to tear it down, each owner will own their own UDS (undivided share) of the land. A well-designed building can easily last more than 50 years.

What to check before buying a land in India?

Here are a few must-check things before making an investment in a plotted development.

Establish the identity of the seller
Conversion and land use approvals. …
Construction approvals. …
Connectivity issues. …
Physical verification. …
Maintenance issues. …
Types of Plots.

What are the 3 types of property?

To Begin With, Firstly, Remember These Major Types Of Property: Movable property and Immovable property. Tangible property and Intangible property. Private property and Public property.

What is the general rule of property?

The general rule of the Transfer of Property Act is that any property can be transferred whether movable or immovable. Section 6 states that property of any kind can be transferred, except as otherwise provided by this act or by any other act for the time being in force

What is proof of land ownership in India?

In India, land ownership is primarily established through a registered sale deed (a record of the property transaction between the buyer and seller). Other documents used to establish ownership include the record of rights (document with details of the property), property tax receipts, and survey documents.

What is Type A property?

Class A properties tend to be extremely desirable, investment-grade properties with the highest quality construction and workmanship, materials and systems. They often contain unique architectural features, utilize the highest quality finishes, and utilize first rate maintenance and management.

What is property under IPC?

Section 22 of IPC defines property as: The words “moveable property” is intended to include corporeal property of every description, except land and things attached to the earth or permanently fastened to anything, which is attached to the earth.

What is father property rule?

Under the Hindu Succession Act, the property of a Hindu father is first distributed equally among his Class I heirs, which includes his widow, children (including daughters), and mother. If the father’s mother is not alive, then the property will be distributed equally among his widow and children.

Who is the first owner of property?

The deed entitles one to the ownership of the property. The person mentioned as owners are the joint owners unless there is a specific covenant in it. And the in a deed where percentage of ownership is not mentioned. It is assumed that the persons mentioned are equal owners.

How property is divided in family law in India?

The Hindu Succession Act, 1956, establishes that a deceased person’s property will be distributed among his heirs in Class-I of the schedule, if he dies without leaving a will. If a person dies without leaving a will, his widow takes one share.

What is proof of possession of land?

Mutation of property in the owner’s name acts as a proof of ‘possession’ of the property.

What is the meaning of NOI?

Net Operating Income

Net Operating Income, or NOI for short, is a formula those in real estate use to quickly calculate profitability of a particular investment. NOI determines the revenue and profitability of invested real estate property after subtracting necessary operating expenses.

Can father remove son from property?

The answer is no. Parents can never disown a son from ancestral property. As per the Supreme Court of India, “Ancestral property means, as regards sons, property inherited from a direct male lineal ancestor, and as regards collaterals, property inherited from a common ancestor.”

Can father take back his property?

Under the Act, the revocation of gift deed can be done through the maintenance tribunal. Each state has a maintenance tribunal where a senior citizen can file an application to revoke the gift deed and take property back.

How many types of ownership of property are there?

The three types of property ownership are individual ownership, joint ownership and ownership by way of nomination.

Who is called owner of house?

A house owner is a person who owns a house.

Which property Cannot go for partition?

Self-acquired property of a member is not subject of partition as it belongs to the owner. Self-acquired property is owned by person hard earned more, gift or will.

Can a mother gives all his property to one child in India?

The answer is yes. The mother is the absolute property owner and it is her will to whom she will give it. She can distribute the property among her sons or let only one son have it.

What is the difference between possession and ownership of property?

Ownership involves the absolute rights and legitimate claim to an object. It means to own the object by the owner. Possession is more the physical control of an object. The possessor has a better claim to the title of the object than anyone, except the owner himself.

What is a second owner called?

A co-owner is an individual or group that shares ownership of an asset with another individual or group.

How many properties can I own

The number of properties you can own is not typically restricted by law. You can own as many properties as you can afford and manage responsibly. However, it’s important to consider various factors when determining how many properties you should own, including your financial capacity, investment goals, time commitment, and ability to manage multiple properties effectively.

What are capital gains from the purchase of a property

Capital gains from the purchase of a property refer to the profit or increase in value that you realize when selling the property for a higher price than what you initially paid for it. It is the difference between the property’s selling price and its adjusted cost basis.

To calculate capital gains from the sale of a property, you generally follow these steps:

Determine the Selling Price: This is the price at which you sell the property.
Determine the Adjusted Cost Basis: The adjusted cost basis is the original purchase price of the property, adjusted for certain factors. These factors may include the purchase price, transaction costs (e.g., closing costs, legal fees), and any capital improvements or renovations made to the property during ownership. Subtracting the adjusted cost basis from the selling price gives you the capital gains.
Deduct Allowable Expenses: Some jurisdictions allow you to deduct certain expenses related to the sale, such as real estate agent commissions, legal fees, and transfer taxes. These deductions can reduce your taxable capital gains.
Apply Tax Rates and Exemptions: Once you have determined the capital gains amount, the tax rates applicable to capital gains in your jurisdiction will be applied. Capital gains tax rates can vary depending on factors like your income level and the duration of property ownership. Additionally, specific exemptions or deductions may be available in your jurisdiction to reduce or eliminate the tax liability on capital gains.

It’s important to note that capital gains tax laws vary between countries and jurisdictions. The above steps provide a general overview, but it’s always recommended to consult with a tax professional or accountant who is familiar with the tax laws in your area for accurate and personalized advice regarding capital gains tax on property sales.

Do I need to pay stamp duty if the property is transferred or is a gift in India

In India, stamp duty is applicable when there is a transfer of property, whether through a sale or a gift. The payment of stamp duty is governed by the Indian Stamp Act, 1899, which varies across different states and union territories in the country. Here are some key points to consider regarding stamp duty on property transfers or gifts in India:

Property Transfers: When a property is transferred from one owner to another, whether through a sale, exchange, or conveyance, stamp duty is typically levied. The amount of stamp duty is based on the property’s value or the consideration (sale price) mentioned in the transfer deed.
Gift Transfers: In the case of a property being gifted, stamp duty is generally applicable, although some states in India offer certain exemptions or reduced rates for property transfers between specified family members, such as parents, children, spouses, or siblings. The specific exemptions and rates may vary between states, so it’s important to consult the regulations of the particular state where the property is located.
Rates and Thresholds: Stamp duty rates differ across states and union territories in India. The rates are typically a percentage of the property’s value or consideration and can vary based on factors such as property type, property location (urban or rural), gender of the transferee, and whether the transferee is a first-time buyer.
Additional Considerations: Besides stamp duty, some states in India may also impose registration fees or other charges when transferring property. These additional charges are separate from stamp duty and are payable during the registration process.

To determine the specific stamp duty rates, exemptions, and requirements applicable to property transfers or gifts in a particular state or union territory in India, it is advisable to consult with a local property lawyer, conveyancer, or a government authority responsible for stamp duty and property registration. They will be able to provide you with accurate and up-to-date information based on the regulations in your specific jurisdiction.

What is Stamp Duty? Who is liable to pay Stamp Duty? Do I get tax benefits on Stamp Duty?

In India, stamp duty is a type of tax imposed on various documents, including property transactions and agreements. It is governed by the Indian Stamp Act, 1899, which is enacted by the respective state governments. Here’s a breakdown of key points related to stamp duty in India:

Definition: Stamp duty is a tax levied on specific documents to give them legal validity and make them enforceable in a court of law. It is payable when certain types of documents are executed, such as sale deeds, lease agreements, gift deeds, mortgage deeds, and conveyance deeds.
Liability to Pay: The liability to pay stamp duty typically falls on the buyer or transferee of the property or the person executing the document. In the case of a gift deed, the donor or person making the gift is liable for paying the stamp duty.
Rates and Calculation: Stamp duty rates differ across states and union territories in India. They are generally calculated as a percentage of the transaction value or the property’s market value, whichever is higher. The rates can vary based on factors such as property type (residential, commercial, agricultural), property location (urban or rural), and gender of the transferee.
Registration: Payment of stamp duty is a prerequisite for registering property documents with the Sub-Registrar of Assurances or the concerned authority. Property documents executed without the payment of stamp duty are not considered legally valid.
Tax Benefits: While stamp duty itself does not offer direct tax benefits, it forms part of the cost of acquiring a property, which can impact the overall tax calculation. However, certain states in India allow the deduction of stamp duty and registration charges under the Income Tax Act, subject to specific conditions and limits. These deductions are applicable to individuals and can be claimed in the year of property purchase.

It’s important to note that the specific stamp duty rates, exemptions, and tax benefits vary between states and union territories in India. The stamp duty regulations of the particular state or union territory where the property is located will apply. To obtain accurate and up-to-date information regarding stamp duty rates, exemptions, and tax benefits in a specific jurisdiction, it’s advisable to consult with a local property lawyer, tax advisor, or the concerned government authority responsible for stamp duty and registration.

What are the taxes that I need to pay before buying a property in India

When buying a property in India, there are several taxes and charges that you may need to pay. The specific taxes and charges can vary depending on the location of the property and the applicable regulations of the state or union territory. Here are some common taxes and charges associated with property purchases in India:

Stamp Duty: Stamp duty is a significant tax that is levied on the transaction value or the market value of the property, whichever is higher. It is payable on property sale deeds, gift deeds, lease agreements, and other property-related documents. The rates vary across states and union territories.
Registration Fee: A registration fee is payable to register the property transaction with the Sub-Registrar of Assurances or the appropriate authority. The fee is usually a percentage of the property value and varies by state.
Goods and Services Tax (GST): GST is applicable to the purchase of under-construction properties. The rate of GST varies depending on whether the property is classified as affordable housing or non-affordable housing. GST is not applicable to the purchase of ready-to-move-in properties.
Property Tax: Property tax, also known as house tax or municipal tax, is an annual tax imposed by local authorities. It is based on the property’s value and varies between municipalities. The property tax is payable by the property owner and is used to fund local services and infrastructure.
Capital Gains Tax: Capital gains tax may be applicable if you sell the property in the future and make a profit. The tax is calculated on the capital gains realized from the sale, which is the difference between the sale price and the indexed cost of acquisition. The rates and exemptions depend on factors such as the holding period and type of property.
Home Loan-related Charges: If you are financing the property purchase with a home loan, there may be additional charges such as loan processing fees, loan insurance, and document charges imposed by the lender.

It’s important to note that the taxes and charges mentioned above are general in nature, and the specific rates, exemptions, and regulations may vary between states and union territories in India. It’s recommended to consult with a local property lawyer, tax advisor, or the concerned government authority in the particular jurisdiction where the property is located for accurate and up-to-date information on the taxes and charges applicable to your specific situation.

Can I authorize someone else to register my property by granting him Power of Attorney?

Yes, you can execute Special Power Of Attorney to get your property registered by someone else.

What is Power Of Attorney

In India, a Power of Attorney (POA) is a legal document that grants authority to an individual (known as the “principal” or “donor”) to appoint another person (known as the “agent” or “attorney-in-fact”) to act on their behalf and make decisions or perform specified tasks. The agent, under the authority granted by the POA, can act and make decisions as if they were the principal themselves.

Here are some key points to understand about the Power of Attorney in India:

Types of Power of Attorney: In India, there are two primary types of POA:
General Power of Attorney (GPA): This grants broad powers to the agent, allowing them to represent the principal in various matters, including legal, financial, and administrative affairs.
Specific Power of Attorney (SPA): This confers limited powers to the agent for specific purposes, such as property transactions, banking matters, or legal proceedings. The SPA is more specific and narrowly tailored to the tasks or decisions delegated.
Execution and Registration: A Power of Attorney document must be executed on a stamp paper as per the stamp duty regulations of the particular state or union territory where it is executed. It must be signed by the principal and attested by at least two witnesses. Some states may require the POA to be registered with the Sub-Registrar of Assurances or the concerned authority for it to be valid for certain transactions, especially those involving immovable property.
Revocation of Power of Attorney: The principal has the right to revoke the Power of Attorney at any time as long as they are of sound mind. The revocation must be communicated to the agent, and in some cases, it may need to be registered or executed in a specific manner.
Importance and Limitations: The Power of Attorney is a valuable legal tool that allows the principal to appoint a trusted person to act on their behalf. However, it is essential to choose the agent carefully, as they will have the authority to make decisions and represent the principal’s interests. It is advisable to seek legal advice and ensure that the POA is tailored to meet the specific requirements and objectives of the principal.

It’s important to note that the laws and regulations concerning Power of Attorney may vary across states and union territories in India. It’s recommended to consult with a local lawyer or legal professional to understand the specific requirements, procedures, and legal implications of executing a Power of Attorney in the particular jurisdiction relevant to your situation.

What is property registration?

It refers to the registering of documents relating to transfer, sale, lease or any other form of disposal of an immovable property. Registration is compulsory by law for all properties under Section 17 of Indian Registrations Act, 1908. Once a property is registered lawfully, it means that the person in whose favor the property is registered, is the lawful owner of the premises and is fully responsible for it in all respects.

What documents would I need at the time of possession?

- Original copies of the chain of title agreements and Building Plan approvals
- Original registration and stamp duty receipts
- Possession Letter
- Original share certificate (In case of societies)
- Proof of payment of all dues like maintenance charges, electricity bills, phone, water and property taxes up to the date of handing possession

NOC from the Society or other concerned body confirming no objection to the transfer

What documents should I check before buying a new property in India

Before buying a new property in India, it is crucial to conduct thorough due diligence and review various documents to ensure a smooth and legally sound transaction. Here are some essential documents you should check:

Title Deed: The title deed establishes ownership of the property. Verify that the seller has a clear and marketable title to the property. Check the chain of ownership to ensure there are no legal disputes, pending litigation, or encumbrances that could affect the property’s ownership.
Sale Deed: The sale deed is a legal document that transfers ownership from the seller to the buyer. Ensure that the sale deed is valid, properly executed, and registered with the appropriate authority.
Encumbrance Certificate: Obtain an encumbrance certificate from the concerned Sub-Registrar’s office. It confirms that the property is free from any legal or financial liabilities, such as mortgages, liens, or pending loans.
Approved Layout Plan and Building Plan: Verify if the property’s layout plan and building plan have been approved by the local development authority or municipality. This ensures that the property is constructed according to the sanctioned plans and complies with building regulations.
Completion Certificate and Occupancy Certificate: If the property is a constructed one, check if the builder or developer has obtained the completion certificate and occupancy certificate from the relevant authority. These certificates indicate that the construction is completed as per the approved plans, and the property is fit for occupancy.
Property Tax Receipts: Request the seller to provide property tax receipts for the past few years. This confirms that the property taxes have been paid up to date.
NOC from Relevant Authorities: Depending on the location and type of property, various No Objection Certificates (NOCs) may be required. Examples include an NOC from the local municipality, environmental authorities, water and sewage board, and electricity board.
Sale Agreement and Allotment Letter: Review the sale agreement, which outlines the terms and conditions of the property sale. Additionally, if you are purchasing a property in a housing society or development, examine the allotment letter provided by the builder or society.
Approved Loan Documents (if applicable): If you are availing a home loan, carefully review the loan agreement and other associated documents provided by the lending institution.
Other Documents: Depending on the type and location of the property, there may be additional documents to consider, such as the Power of Attorney, development agreement, possession letter, and society bye-laws.

It is advisable to engage a qualified lawyer or property expert to assist you in the due diligence process and document verification. They can guide you through the legal requirements, ensure the documents are in order, and help protect your interests throughout the property purchase transaction

Can a single woman get a home loan in India

Yes, single women in India are eligible to obtain home loans for purchasing residential properties. Banks, financial institutions, and housing finance companies in India provide home loan facilities to individuals, including single women, who meet the required eligibility criteria. Here are some key points to consider:

Eligibility Criteria: The eligibility criteria for home loans can vary between lenders, but generally, they consider factors such as income, employment stability, credit history, age, and property value. Single women who meet these criteria are eligible to apply for a home loan.
Income and Repayment Capacity: Lenders typically assess the income and repayment capacity of the borrower to determine the loan amount and interest rate. They consider factors such as the individual’s salary, employment type (salaried or self-employed), and existing financial obligations.
Documentation: Single women applying for a home loan will need to provide the necessary documentation, such as identity proof, address proof, income proof, bank statements, and property documents.
Co-applicant Option: Some lenders may require a co-applicant for the home loan, such as a family member or spouse, depending on their internal policies. However, many lenders also allow single women to apply for a home loan without a co-applicant.
Interest Rates and Loan Terms: The interest rates, loan terms, and repayment options offered by lenders may vary. It is advisable to compare the rates and terms from different lenders to find the most suitable option.
Tax Benefits: Single women who avail a home loan can also claim tax benefits on the principal repayment and interest paid under the Income Tax Act, subject to certain conditions and limits.

It’s important to note that the specific eligibility criteria and loan terms can differ between lenders. Therefore, it is recommended to research and approach multiple lenders to understand their specific requirements and offerings. Consulting with a financial advisor or home loan specialist can also help you navigate the process and find the best home loan option suited to your needs as a single woman.

What is a down payment in realestate in India

In real estate, a down payment refers to the initial amount of money paid by the buyer to the seller or the developer at the time of purchasing a property. The down payment is a percentage of the total purchase price of the property and represents the buyer’s own contribution towards the purchase.