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What Is Real Estate
What Is Real Estate
What Is Real Estate
Real estate is property made up of land and the buildings on it, as well as the
natural resources of the land, including uncultivated flora and fauna, farmed
crops and livestock, water and mineral deposits.
Although the media often refers to the "real estate market," real estate can be
grouped into three broad categories based on its use.
Real property is not the same thing and should not to be confused with personal
property. Personal property includes intangible assets like investments, along
with tangible assets such as furniture and fixtures like a dishwasher. Also, even
renters may claim parts of a home as personal property, provided you bought
and installed the property with the lessor's permission.
Skill Shortage.
Overvaluation of Property.
Highly Fragmented.
Lack of Transparency.
OC (OCCUPATION CERTIFICATE)
Once the project is completed, it is important for the builder to obtain an
Occupancy Certificate also known as Completion Certificate. This certifies that
the building has complied with the approved plans.
“The OC from the planning authority is essential for any construction as per the
provision of law. A buyer can move into his/her new apartment only once the
OC has been received, says Asha Nayar Basu, managing partner, S Jalan & Co.
Why is OC important?
The certificate is also required when the buyer applies for Khata. However, note
that OC is not required for registration of the property during purchase. Because
of this buyers tend to ignore or overlook the OC. A buyer will face problems
obtaining Khata without an OC. Please note that Khata is a must in case the
owner plans to sell the flat in future. The OC also plays a significant role while
applying for home loan or loan to purchase a re-sale flat.
Under-construction property
In case you are buying an under construction property, make sure you check the
Commencement Certificate (CC) before signing any agreement. “Often builders
continue to build first and second floors without getting a CC as they are
confident they will be able to get it in future. This is illegal and can create
problems in getting an OC. It is mandatory for a builder to possess this
document before beginning construction of a property. These certificates are
evidences that the commencement and completion of the building are as per the
approved plan and in compliance of locals laws,” says Basu. Also, while
applying for a bank loan, the banking authorities may demand CC instead of
OC.
How to obtain an OC
However, in case the builder has deviated a little than the allowed percentage,
say about 5 per cent from the approved plan, then as per Basu, “The authorities
may impose a penalty and regularise the building and issue the OC. The penalty
is charged based on the extent of the deviation.
If there is no OC, the Palike can also initiate action against the flat owners, as
the law says no person can move into a building without the OC. Such cases
have been seen in Mumbai and Delhi real estate markets. The classic example is
the Campa Cola case in Mumbai.
the owner does not have the OC. If the building does not have an OC, a flat
owner or buyer can approach BBMP directly.
Promotion
Perfection
Prepration
Pricing
Pre listing
FSI, FAR, GCR and VPR are related to the field of real estate. It represents the
calculation based on the ratio derived by dividing the Gross floor area with the
total size of land on which the building is made. Thus, simply FSI, FAR, GCR
or VPR = Gross floor area/ Area of the plot.
HOW REAL ESTATE COMPANIES
RECOGNISED REVENUE?
The core principle of IND AS 115 is that an entity will recognise revenue to
depict the transfer of goods or services to customers at an amount that the entity
expects to be entitled to in exchange for those goods or services.