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1) List the things to look for when zeroing in on a house.

The most important things to look before buying a property is Location, Budget, and type of property. These are the determining factors for the purchase of property from an end user's perspective. Demand and supply govern Real estate beliefs. This may vary on a project basis.

2) What is carpet area, built-up area, & super built-up area?
  • Carpet area – The actual area within the walls. If you put out a wall-to-wall carpet in your entire home, the area covered would be the carpet area.
  • Built-up area – It is inclusive of the area being occupied by the walls of your home along with the carpet area.
  • Super built-up area – It takes into account all the area under the common spaces which is the apartment's proportionate share of the staircase, lobby, elevator and the corridor outside the apartment.
3) What are the documents required for selling a property?
  • Depending on the kind of property, some crucial documents, like a No-Objection Certificate from the housing society and a document of consent in the case of jointly owned property, may be required.
  • Along with these, registered house and copies of Stamp Duty documents will be needed as well. If the property is being mortgaged, then bank will have hold of these papers and you will be allowed to use a photocopy of these required documents to initiate a deal.
  • If the property has been sold and bought multiple times, a copy of the previous deeds may be required to prove the credibility of the deal.
  • The housing society share certificate and the sale/purchase deed of the property are the main documents required to sell a residential property.
4) What is the registration fees on the sale of immovable property?
  • These rates are the caution rates of a particular area set by the government on which the registration rates on the value of the property are calculated.
  • When the property is been transferred from one to another, the stamp paper and registration fee i.e. 7 to 8 percent of the value of the property or those of circle rates has to be paid.
  • Rates can be recognized on government registration and stamp department websites of each city.
5) Top questions you should always keep in mind while buying a house.
  • What to Buy?
  • Where to Buy?
  • How to Buy?
  • How much to pay for it?
  • Which locality to buy in?
  • When to Buy?
  • Type of property to be bought
  • Ways to extract maximum ROI?
6) Ways to choose the right type of property?
  • Depending on the budget, you can decide the type of property.
  • The determining factor while choosing the type of house you need is the size of your family, along with the budget if you are an end-user.
  • There are varieties of housing formats on the market to choose from. For example 1, 2, 3 and 4 BHK apartments, studios, villas and row houses.
  • Projects and townships with lifestyle amenities are what most end-users are looking at today.
7) What papers and permissions are required to check the genuineness of the builder?

Before buying a property, you should look at the sanctioned layout plan, building plan, ownership documents, etc. As all these procedures are very hectic and require a lot of legal probings, it is prudent to contact an advocate for further advice.

  • You should check the approved plan of the building along with the number of floors.
  • Make sure that the floor you are purchasing is authorized.
  • You should check that either the builder owns the land on which he is building, or he has initiated an agreement with a landlord.
  • Check if the builder is constructing without any violation of front setbacks, side setbacks, height, etc.
  • Verify that all the features given in the agreement to sell are followed by the constructor or not.
  • Check the influence of the builder in the market.
  • Ensure that urban land ceiling NOC, NOC from water and electricity authorities, lift authorities has been obtained or not.
8) Why you should own a home rather that renting?
  • Appreciation: Real estate has long-term, exponential growth in value.
  • Tax Saving: Property tax benefits and other incentives
  • Equity: Money paid for rent is money that you will never get back, but loan payments let you build your house
  • .
  • Savings: Building integrity in your home is a convenient savings plan. Unlike rent, your fixed-loan payments do not increase over the time, so your housing costs may decrease as you own the home longer.
9) Here are some Loan guides you should go through before buying a house.
  • Select what features you most desire in a home, what localities you desire, and how much you are prepared to shell out each month for housing.
  • Are you considering an initial ‘nest' flat/home with plans to shift in a few years, or do you plan to live in this home for a longer period? This opinion may decide the kind of house you buy as well as the type of loan terms that will best suit you.
  • When is your rent up? Are you allowed to lease? These factors together will help you determine when you should move.
  • Review your credit position and ensure you have enough funds to cover your down payment and completion costs. Then, consult a bank and get pre-qualified for a loan or looking at your loan eligibility and compensation scheme that is offered by the bank.
  • Insist on a property/flat inspection.
10) State the essential aspects to be considered before buying a property that are registered in the name of a company.
Before purchasing any property, you should authenticate that the property is neither mortgaged nor possess collateral security against any loan. This can be done from the Registrar of Companies.
11) What is meant by the valuation of property?
  • Valuation of property means - arriving at the actual prevailing cost of the property.
  • You need to inspect other parameters such as the age of the property, projects available, and the sizes available in that project.
  • Valuation could depend upon a number of parameters, the location of the property being the most important one.
  • The current transaction price of a similar property needs to be considered to arrive at the closest value of the property.
12) Define stamp duty. Who has to pay the stamp duty? Developer or purchaser?

Pre-EMI is the interest applicable on the disbursed loan for an under-construction property till possession, Once possession given it can be converted into EMI (interest +Principle amount repayment)

13) What is Pre-EMI?

Stamp duty is estimated on the basis of the total value of your property. It is supposed to be paid every time there is a transfer of ownership The amount to be paid varies city wise.

14) What are other charges apart from Stamp-duty?

Apart from Stamp-duty buyer has to pay Service Tax, Registration and VAT

15) Is Service Tax Applicable for Ready Possession property?

No, Service Tax is not applicable for Ready Possession property. It is applicable only for the property under construction

1. Who can purchase immovable property in India?

The following categories are allowed to purchase immovable property in India:

  • NRI (Non-Resident Indian)
  • PIO (Person of Indian Origin)

However, this applies only to the purchase of residential and commercial properties and does not apply for purchase of agricultural land/ plantation property/ farmhouse in India.

2. Can NRI/PIO purchase agricultural land/ plantation property / farm house in India?
No
3. Is there need to file any document with the Reserve Bank after the purchase?
No
4. Are there any restrictions on the number of purchase of residential/commercial properties for NRI/PIO?
No
5. Can a foreign national of non-Indian origin be a second holder of the immovable residential/commercial property owned by NRI/PIO?
No
6. Can a foreign national of non-Indian origin resident outside India buy an immovable property in India?

A foreign national of non-Indian origin, resident outside India is not allowed to buy an immovable property in India unless the property is acquired by way of inheritance from a person who was resident in India. However, the person is allowed to acquire or transfer immovable property in India, on lease, not more than five years. In such cases, it is not compulsory to take any permission or report to the Reserve Bank of India.

7. Can a foreign national who is a person resident in India purchase immovable property in India?

Yes. However, the concerned person would have to obtain the approvals & fulfill the requirements, if any prescribed by other authorities like the State Government concerned, etc. The onus to prove his/her residential status is on the person as per the extant FEMA provisions, if needed by any authority. However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Iran, Bhutan, Nepal, Sri Lanka, Afghanistan and China will need prior permission of the Reserve Bank.

8, Can the branch / liaison office of a foreign company purchase immovable property in India?

A foreign company that has established a Branch Office of business in India, in accordance with the Foreign Exchange Management Regulations, 2000 may acquire any immovable property in India, which is necessary for or incidental to carrying on such activity. The payment for acquiring such a property should be made by way of foreign inward remittance through the proper banking channels. A declaration in form IPI should be filed with the Reserve Bank within ninety days from the date of acquiring the property. Such a property can also be mortgaged with an Authorised Dealer as a security for the purpose of borrowings. On winding up of the business, the sale proceeds of such property can be repatriated only with the prior approval of the Reserve Bank. Further, acquisition of immovable property by entities incorporated in Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan and who have set up Branch Offices in India and would require prior approval of the Reserve Bank.

However, if the foreign company has established a Liaison Office in India, it cannot acquire immovable property. In such cases, Liaison Offices can acquire property by way of lease not exceeding 5 years.

9. Can the branch / liaison office of a foreign company purchase immovable property in India?

Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from

  • A person resident in India; or
  • An NRI; or
  • A PIO.

However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift. A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India by way of gift..

10. Can a NRI/PIO acquire immovable property in India by way of gift? Can a foreign national acquire immovable property in India by way of gift?

Yes, NRIs and PIOs can freely acquire immovable property by way of gift either from

  • A person resident in India; or
  • An NRI; or
  • A PIO.

However, the property can only be commercial or residential in nature. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift. A foreign national of non-Indian origin resident outside India cannot acquire any immovable property in India by way of gift..

11. Can a non-resident inherit immovable property in India?

Yes, a person resident outside India i.e.

  • i) an NRI;
  • ii) a PIO; and
  • iii) a foreign national of non-Indian origin can inherit and hold immovable property in India from a person who was resident in India. However, a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan should seek prior approval of the Reserve Bank for inheriting immovable property in India.
12. From whom can a non-resident person inherit immovable property?

A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from :

  • A person resident in India
  • A person resident outside India

However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange law in force or FEMA regulations, applicable at the time of acquisition of the property.


Transfer of Immovable Property in India
Transfer by way of Sale

1. Can an NRI/ PIO/foreign national sell his residential / commercial property?
a) NRI can sell property in India to
A person resident in India; or
An NRI; or
A PIO.
(b) PIO can sell property in India to
A person resident in India; or
An NRI; or
A PIO. - with the prior approval of the Reserve Bank
(c) Foreign national of non-Indian origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of the Reserve Bank to
A person resident in India; or An NRI; or A PIO.
2. Can a non-resident owning / holding an agricultural land / a plantation property / a farm house in India sell the said property?

a) NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.

(b) Foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank to sell agricultural land/plantation property/ farm house in India.

1. Can an NRI/ PIO/foreign national sell his residential / commercial property?
(a) NRI can sell property in India to
A person resident in India; or
An NRI; or
A PIO.
(b) PIO can sell property in India to
A person resident in India; or
An NRI; or
A PIO. - with the prior approval of the Reserve Bank
(c) Foreign national of non-Indian origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of the Reserve Bank to
A person resident in India; or An NRI; or A PIO.
2. Can a non-resident owning / holding an agricultural land / a plantation property / a farm house in India sell the said property?

(a) NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.

(b) Foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank to sell agricultural land/plantation property/ farm house in India.


Transfer by way of Gift

1. Can an NRI/ PIO/foreign national sell his residential / commercial property?
Yes.
(a) NRI / PIO may gift residential / commercial property to:
Person resident in India or
An NRI or
PIO
(b) A foreign national of non-Indian origin requires the prior approval of the Reserve Bank for gifting the residential / commercial property.
2. Can an NRI / PIO / foreign national holding an agricultural land / a plantation property / a farm house in India, gift the same?

(a) NRI / PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.

(b) Foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank to sell agricultural land/plantation property/ farm house in India.


Transfer through Mortgage

Can residential / commercial property be mortgaged by NRI/ PIO?
NRI / PIO can mortgage a residential / commercial property to :
(a) an Authorised Dealer / the housing finance institution in India without the approval of Reserve Bank
(b) a bank abroad, with the prior approval of the Reserve Bank.
A foreign national of non-Indian origin can mortgage a residential / commercial property only with prior approval of the Reserve Bank.
A foreign company which has established a Branch Office or other place of business in accordance with FERA/FEMA regulations has general permission to mortgage the property with an Authorised Dealer in India.

Mode of Payment for Purchase of Immovable Property in India.

How can an NRI / PIO make payment for purchase of residential / commercial property in India?
Payment can be made by NRI / PIO out of :

funds remitted to India through normal banking channels or funds held in NRE / FCNR (B) / NRO account maintained in India

No payment can be made either by travellers cheque or by foreign currency notes or by other mode except those specifically mentioned above.