Buyer’s FAQ’s

TROUBLE FINDING HOME ? HERE IS A GUIDE :–

Identify your needs and preferences before you decide to go house hunting.

Here are few important points to regard:

1. What kind of house to buy- condo, apartment, row house or bungalow? Figure out what suits you and your family the most.

2. Is it an investment based decision or emotional step? Check resale values in advance if it is a possibility in future.

3. What kind of area woud you prefer— completely residential, proximity to workplace or commercial neighborhood?

4. What do you prefer- hustle bustle or a quieter neighborhood?

5. If you have senior family members, give due importance to their lifestyle needs.

6. If buying an apartment, choose the floor carefully. If you have pets, ground floor is recommended

 

  • How Much Do I Have to Save to Buy a Home?

If you have a steady job and a decent credit history, there is a good chance that you can find a bank/home lender who will lend you most of the purchase price of your new house. Loan amount generally depends upon your repayment capability and can be a maximum of 80% to 90% of the cost of the property, depending upon the bank.

– property values

– traffic

– safety measures in the building/society and crime rate in the area

– future construction/future growth of the area

– proximity to market, railway stations, schools, employment, hospitals, restaurants and cultural activities such as cinemas and malls.

– quality of schools, if you have kids

 

  • How to get a home loan?

There are several banks and money lending companies who will lend you a home loan at competitive rates. Check carefully all the available options before choosing your bank or money ender.

 

  • What is the difference between built up area, super built up area, and carpet area?

Carpet Area: The term Carpet Area’ refers to the total usable area within the four walls of an apartment or a commercial space, as the case may be. It is the actual usable area which the user gets to use. In other words, it refers to the area for which a carpet can be laid if required by the owners.

Built up Area: Over and above the carpet area, BUA would include the space covered by the thickness of the inner and outer walls of the flat.

Super Built up Area: This includes the built up area along with the area under common spaces such as the lobby, lifts, stairs, etc. This term is therefore only applicable in the case of multi-dwelling units.

 

  • 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. Section 30, of Bombay Stamp Act, 1958 states the liability for payment of stamp duty.

 

  • Which are the instruments that attract the payment of Stamp Duty? 

The instruments like Agreement to sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty on market value of the property.

 

  • What is FAR or FSI?

Floor Area Ratio (FAR) or floor Space Index (FSl) means the quotient of the ratio of the combined gross floor area of all floors excepting areas specifically exempted under these Regulations to the total area of the plot.

As a formula:

FAR / FSl=( Total covered area on all floors on a certain plot) / (Area of the plot)

What are the Tax implications on sale of any Residential ‘Commercial property?

You will be liable to pay tax on the profit arising out of the sale of a Residential / Commercial property, which comes under capital gains.

 

  • What is meant by the market value of the property and is Stamp Duty  payable on the market value other 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 prices are Determined & Published by the Government. The Stamp Duty is payable on the agreement value of the property or the market value whichever is higher.

 

  • What is TDR ?

Transfer of Developmental Rights (TDR) means making available[e of certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of the land, so that be can use the extra built up area either himself or transfer it to another in need of extra built up area for an agreed sum of money

 

  • What permissions and papers should one check with the builder to verify the builder, on buying a flat from a builder in a building under construction?

when you are buying a flat from a builder in a building under construction, you have to check the following:

– Approved plan of the building along with the number of floors

– Ensure that the floor that you are buying is approved

– Check if the land on which the builder s 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.

– 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.

– Check the building byelaws as applicable in that area and ensure that the builder is building without any violation of front setback, side setbacks, height, etc.

– Check specifications given in the agreement to sell of the sale brochure, Is be providing the same actually on the ground or not?

– Check the reputation of the builder

– Ensure that urban land ceiling NOC (if applicable) has been obtained or

– 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.

– Check the building byelaws as applicable in that area and ensure that the builder is building without any violation of front setback, side setbacks, height, etc.

– Check specifications given in the agreement to sell of the sale brochure, Is be providing the same actually on the ground or not?

– Check the reputation of the builder

– Ensure that urban land ceiling NOC (if applicable) has been obtained or not.

-NOC from water or electricity authorities have to be obtained.

-NOC from lift authorities.