FAQ (Frequently Asked Questions)
Buying / Selling Property FAQs
|
Does any document require to be examined before buying a property? |
| Before you buy a
property, you must get a title and document search properly conducted
by hiring a competent advocate. You cannot examine the documents on
your own, and thus, professional assistance needs to be taken. |
| What is meant by Carpet
Area, Built-up Area and Super Built-up Area? |
Carpet Area:
It refers to the area of the apartment, excluding the area of the
walls.
Built-up Area: It comprises the apartment area as well as the area
of the walls.
Super Built-up Area: This term is used only when referring to multi-dwelling
units. It includes the apartment area, the area of the walls and the
area under common spaces like lobby, staircase, elevators, etc. |
| What documents need to
be verified before making any purchase of a property? |
The
following documents must be properly verified by an advocate before
buying a property:
• Approved Layout Plan
• Approved Building Plan
• Title Ownership Documents
• Complete Search |
| What is meant by Stamp
Duty? |
| Stamp Duty refers
to charges in the form of taxes levied by the State Government. |
| Is it the buyer or the
seller liable to pay Stamp Duty? |
| Under Section 30
of Bombay Stamp Act, 1958, the buyer is liable to pay Stamp Duty,
unless there is a specific agreement to the contrary. |
| Under whose name, are
the stamps to be purchased? |
| The stamps can be
purchased in the name of either of the executors to the instrument. |
| How do you define Market
Value of a property? Is Stamp Duty payable on this value or on the
basis of the clause mentioned in the agreement? |
The Market Value
of a property refers to the price at which the property can be purchased
in the open market on the execution date of such instrument.
The Stamp Duty has to be paid either on the property value stated
in the agreement, or the market value, whichever is higher. |
| Which instruments influence
the payment of Stamp Duty on the market value of the property? |
The
following instruments have a great influence on the payment of Stamp
Duty on the market value of the property:
• Agreement to Sell
• Conveyance Deed
• Exchange of Property
• Gift Deed
• Partition Deed
• Power of Attorney
• Lease Transfer |
| Who can determine the
market value of the property? |
| The Area Sub-Registrar,
under whose jurisdiction the property is located, has fixed property
values for different locales. Thus, only he should be contacted to
get the market value of the property. |
| What risks are involved
in buying a flat on a General Power Of Attorney (GPA) basis? |
| Under the land laws,
buying a flat on a GPA basis is not permitted. |
| Is a GPA revocable? |
| Yes, a GPA can be
either revocable or irrevocable, on the basis of the GPA created by
one. |
| What is meant by a Freehold
Property? |
| A Freehold Property
refers to any plot or flat, where there is a sole proprietary ownership
with no conditions under the land laws, and there is no lessor or
lessee involved. |
| Can a GPA flat be converted
into a Freehold flat? |
| No, GPA is a non-convertible document. |
| How can I verify if the documents submitted
by the seller are authentic? |
| You might be required to hire an advocate
to render his professional services for the proper examination of
the authentication of the documents submitted by the seller |
