Understanding Real Estate Terminologies

1. Carpet Area Carpet area, as defined by the Real Estate (Regulation and Development) Act, 2016 (RERA), refers to the net usable floor area of an apartment, excluding external walls, areas under service shafts, exclusive balcony or verandah area, and exclusive open terrace area. It does, however, include the area covered by internal partition walls within the apartment.

2. Super Built-up Area Super Built-up Area encompasses the built-up area along with the proportionate area of common spaces such as lobbies, lift shafts, and stairs within a residential or commercial complex.

3. Built-up Area Built-up Area represents the actual utilized space within an apartment, comprising the carpet area plus the thickness of outer walls and balcony space.

4. Total Consideration Total Consideration denotes the amount payable for a specific unit and its associated properties, excluding additional charges such as stamp duty, registration fees, municipality tax, and other levies imposed by relevant authorities.

5. Common Parts and Portion Common parts and portions encompass areas, segments, and amenities of a building designated for the shared use and enjoyment of all flat owners and/or occupants.

6. Completion Date The Completion Date specified in this Agreement represents the maximum duration allowed, barring prevention due to Force Majeure Events, for the construction to conclude and the Offer of Possession Letter to be issued to the Purchasers.

7. Completion Certificate A Completion Certificate (CC) is a document obtained by a builder from municipal authorities upon finishing construction of a building. It confirms that the building adheres to all safety regulations and standards.

8. Possession Letter The Possession Letter, issued by the developer to the buyer, specifies the date when the buyer can take possession of the property.

9. Agreement for Sale An Agreement for Sale delineates the terms and conditions of property sale mutually agreed upon by involved parties. It serves as the foundational document upon which a conveyance deed is based.

10. Deed of Conveyance A Deed of Conveyance is a document through which a seller transfers ownership of the property to the buyer, typically executed after construction completion, receipt of the completion certificate, and fulfilment of all terms and conditions in the sale agreements.

11. Market Value & Stamp Duty Market value denotes the fair price determined by the government at which a property can be bought in the open market on the date of executing the instrument. Stamp Duty is payable based on the higher of the agreement value or the market value of the property.

12. House Rules, Club Rules & Restrictions These encompass the norms, regulations, and guidelines that all buyers must adhere to for maintaining common areas, including any club facilities, within the project.

13. Fit-out Rules and Guidelines Fit-out rules and guidelines outline the procedures for conducting interior work or fit-out work in various units within the project.

14. Guarding Charge If the Purchasers fail to take possession of the Unit within the stipulated time and make required payments as per the Offer of Possession Letter, the Developer reserves the right to levy guarding charges as defined in the sale agreement.

15. Legal/Documentation and Professional Charges Legal/Documentation and professional charges cover expenses related to the preparation of the Agreement for Sale, Deed of Conveyance, and/or Transfer Deed for the specified Flat/Unit, including all requisite deeds, documents, and instruments.

16. Maintenance Charge Maintenance charges encompass the proportional share of expenses incurred in upkeeping all facilities and amenities, including general common elements, irrespective of their use or availability.

17. Nomination/Transfer Charge Nomination/Transfer charge is the fee levied on any transfer, assignment, or nomination by the Purchasers of the specified unit before the execution of the Deed of Conveyance by the Developer.

18. Association Formation Fee Association Formation Fee refers to the costs and charges associated with the establishment of an association within the community or complex.

19. Sinking Fund The Sinking Fund is a reserved fund designated for the periodic upgrade of services and associated costs, including capital expenses necessary for repairs and/or replacement of equipment and installations.

Understanding Legal Procedures

1. Registration Process  Registration occurs upon completion of each phase and payment of the entire sale consideration, including deposits. The developer facilitates registration through a legal consultant appointed for the purpose.

2. Transfer Process & Charges  The Applicant/Intending Allottee is restricted from transferring the registration, application, or allotment to a third party during the lock-in period specified in the project's application form. Subsequently, if the buyer seeks to transfer the apartment prior to possession, approval from the Company is required. The Company reserves the right to permit such transfers at its discretion, subject to payment of transfer/nomination charges as outlined in the application.

3. Procedures for Selling the Apartment Before Registration  In the event of intending to sell the apartment before registration, the applicant may transfer ownership to a purchaser through a nomination agreement. This process necessitates the submission of a request letter and payment of nomination charges. During registration and incorporation of the conveyance deed, presence of all previous buyers for the unit is mandatory.

4. Cancellation Policy  If you choose to cancel your application post-agreement, the seller retains the right to forfeit the Booking Money Deposit. The balance amount shall be refunded according to the timeline specified in the sale agreement. Accrued interest due to payment delays will be deducted from the refund amount.

5. Power of Attorney  You have the option to execute a Special Power of Attorney to authorize another individual to register your property on your behalf.

6. Required Agreements  A mandatory Agreement for Sale is required upon purchasing the apartment. Upon completion of project construction, offer of possession, and settlement of all dues, we will do the Registration and enter into Deed of Conveyance.

7. Joint Ownership  Property can be jointly owned by multiple individuals, with legal and financial considerations to be addressed to prevent disputes. Joint ownership is often utilized to leverage combined financial resources, such as in the case of couples pooling funds for property acquisition. Moreover, property can be purchased under a combination of personal and company names, offering flexibility in ownership structures.

Understanding Home Loans

1. Loan Amount  Typically, you can get a Home Loan of 80% of the purchase price, subject to the eligibility.

2. Co-Applicant Eligibility  Your spouse can serve as a co-applicant for the home loan, leveraging their income to augment the loan amount. Additionally, any other co-owners must also be co-applicants.

3. Loan Security  Security for the loan comprises the property itself and/or additional collateral security as mutually agreed upon.

4. Loan Sanction Process  To get a home loan you need to furnish proof of income, employment, balance sheet, and other relevant documents for swift loan sanctioning.

5. Tax Benefits  Tax benefits are applicable to both the principal and interest components of the loan under the Income Tax Act, 1961. It's advisable to stay updated on the current tax benefits available, as they may vary from year to year.

Understanding Taxation

1. GST & Input Credit  GST is payable additionally at the applicable rate on the total unit consideration as notified by the government. Input credit has already been applied for all buyers in the base price. Variable charges attract GST at the notified rates, currently set at 18%, subject to change according to government directives.

2. TDS on Property  The Finance Bill 2013 mandates that purchasers of immovable property (excluding rural agricultural land) worth ₹50 lakh or more must pay withholding tax at a rate of 1% from the consideration payable to a resident transferor.

3. TDS Responsibility  According to TDS rules, the buyer of the property is responsible for deducting TDS and depositing it in the Government treasury.

4. Due Date of TDS Payment  As per CBDT notification no. 30/2016 dated April 29, 2016, the due date for payment of TDS on the transfer of immovable property has been extended to thirty days (from the existing seven days) from the end of the month in which the deduction is made.

5. PAN Requirement for Sellers  PAN of the seller is mandatory and should be acquired from the seller before completing the transaction.

6. TAN Requirement  Buyers or purchasers of the property do not need to obtain Tax Deduction Account Number (TAN). They are required to quote their PAN and the seller's PAN.

7. Form 26QB  Form 26QB is the online form available on the TIN website for furnishing information regarding TDS on property.

8. Form 16B  Form 16B is the TDS certificate issued by the deductor (buyer of property) to the deductee (seller of property) regarding the taxes deducted and deposited into the Government Account.

Call Call Whatsapp Whatsapp Enquire Enquire