Q. Which documents are required while buying commercial or residential property?
Ans. Before you buy either commercial or residential property, there are a few things you should always consider to stay informed, secured. Know the market trends about property rates in your vicinity, formulate commercial terms. Distinguish between terms and conditions of the contract which are negotiable and those which are fixed e.g. price, payment schedule, time of completion etc. List your requirements with a reputed broker. Ask for photocopies of the all deeds of title. Examine the deeds to establish the ownership of the property by seller, preferably through an advocate.
Know the survey number, village and registration district of the property. Any loan entitled on the property must be cleared beforehand. The title of the Vendor to the property must be clear and marketable. 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 paid 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
(b)the income tax authority
(c) Municipal Corporation
(d) the competent authority under the Urban Land Ceiling and Regulation Act
(e) any other authority.
Will you require a loan for making payment of the consideration amount. Ask for a pre-approval letter from the lending institution. 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 along with documents of title in original from the Vendor of the property. Change name of the holder of the property to the purchaser in the records of the society, electricity company, municipal corporation, Index II etc
Q. What is market value of the property? Does stamp duty is payable on market value of the property or on consideration as stated in the agreement?
Ans. By Market value, it means the price at which the property can be availed in the market on the date of execution of instrument. The stamp duty is payable on the agreement value of the property or the value of market, whichever is higher.
Q. What is stamp duty? Who pays stamp duty – buyer or seller?
Ans. Stamp duty is a tax, similar to sales or income tax collected by the government. It should be paid on time and in full. A stamp duty paid instrument/document is considered a proper and legal instrument/document. 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.
Q. Which are the key checklists one should consider before investing on a flat?
Ans. Proximity of your flat with all highlights – including medical, health, school and entrainment facilities are vital. Basic amenities, hygienic environment and a an ideal neighborhood are needed to be considered.It is ideal that you visit the site in person to know if yours is an ideal flat
Q. Should I read the documents in detail?
Ans. These are some of the important documents that you must read very carefully - Builder buyer agreement, especially escalation clauses, penalty clauses and most importantly, Terms of penalty payout etc. Loan documents, especially clauses related to interest rate resets and early termination, penalty etc are very important and often taken casually by the buyers. It is very important to look into these documents with detail.
Q. Which are additional costs not included in the price of the flat?
Ans. Parking, clubhouse, firefighting charge, sub-lease or registry costs, Service Tax are some additional charges that would vary depending on the type of flat. Cost of fitting, interior etc. can be charged.