Congratulations To Our Wonder Box Lucky Winner Mrs. Aradhna Jain (Plot no. 34, Size: 50 sqyards). Now We Will Pay Her Remaining EMI.

Q.1 What is Stamp Duty and who bears the liability to pay the Stamp Duty – the buyer or the seller?

Ans 1. Stamp Duty is a tax similar to the sales tax or income tax and has to be paid in full amount and on time. Buyer has the sole liability of paying the stamp duty unless there is an agreement to the contrary.

Q.2 What does the Market Value of a property mean and is the Stamp Duty payable on Market Value of a property?

Ans 2. Market Value of a property is the price at which it could be bought in open market as on the date of valuation. Stamp Duty is payable on the agreement value of property or its market value, whichever is higher.

Q.3 Who is the most suitable authority for inquiring the market value of a property?

Ans 3. Sub-Registrar of the area, in whose jurisdiction the property is located; is the most suitable authority for knowing market value of a property.

Q.4 What all should anybody keep in mind while buying a commercial or residential property?

Ans 4. When buying a commercial or residential property, following points must be kept in mind:

(a) Market Trends about prevalent rates of property in the vicinity and last known transactions.
(b) Properly identify the property you wish to purchase.
(c) 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.
(d) List your requirements with a reputed real estate consultant and ask for photocopies of all deeds of title related to the property
to be purchased.
(e) Examine the deeds to establish the ownership of property by seller, preferably through an advocate.
(f) Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale.
(g) Previous encumbrances and loans, if any, on the property must be cleared before completion of purchase of the property.
(h) The title of the Vendor to the property must be clear and marketable.
(i) Finalize commercial terms of purchase of the property.
(j) Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property.
(k) Ascertain outgoings to be paid for the property i.e. property tax, water and electricity charges, society charges, maintenance charges etc.
(l) Request Vendor to obtain, if applicable, consent, permission, sanction, no objection certificate of various authorities such as the (a) society (b) income
tax authority (c) Municipal Corporation (d) competent authority under the Urban Land Ceiling and Regulation Act (e) any other authority.
(m) Ask for a pre-approval letter from the lending institution.

Q.5 What are the various permissions and papers that should be checked by anybody with the builder when buying flat in a building which is under construction?

Ans 5. If you are buying a flat from a builder in an under construction building, you should check out the following points:

(a) Approved plan of the building along with number of floors, just to make sure that the floor on which you are buying flat is authority approved.
(b) Whether the land on which the builder is constructing the building is his own or he has undertaken an agreement with a landlord.
(c) If he has undertaken an agreement with a landlord, check the title of the land ownership with help of an advocate.
(d) The building bylaws as applicable in that area.
(e) Examine the deeds to establish the ownership of property by seller, preferably through an advocate.
(f) Ensure that the builder is constructing the building without any violation of front setback, side setbacks, height, etc.
(g) Check if the specifications given in agreement to sell or the sale brochure match – on the ground facts or not?

Q.6 What forms the completion of a sale?

Ans 6. Transfer of a property is concluded when you have a sale deed / agreement for sale with actual possession. Generally, in all cases the entire amount is paid simultaneously with the handing over of physical possession and signing of the transfer documents.

Q.7 Within how much time should an agreement/deed be registered?

Ans 7. The property agreement should be registered with the Sub-Registrar of Assurances, under the provisions of Indian Registration Act within 4 months of the date of its execution.