While Buying Property

What should a purchaser keep in mind while purchasing a

residential flat?

Some important points to keep in mind while buying the flat:

•Locality – Proximity to workplace, educational institutions, hospitals, shopping areas,

entertainment centres, transportation, pollution levels.

•Quoted area of the flat i.e. Carpet, Built Up Area and super Built Up Area

•Car parking space

•Quality of construction

•Reputation of the builder or seller

•Sufficient water and electric supply, other utilities

•Cost components: price, stamp duty, registration charges, transfer fees, maintenance
charges, any other payments

• Appreciation of the property for resale and rental.

•Any other distinguishing features or advantages of the property

 While Buying Property

What is meant by Carpet Area, Built-Up Area & Super Built-Up

Area?

•Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This
area does not include the thickness of the inner walls. It is the actual used area of an
apartment/office unit/showroom etc.

•Built up Area is the carpet area plus the thickness of outer walls and the balcony.

•Super Built Up Area is the built up area plus proportionate area of common areas such
as the lobby, lifts shaft, stairs, etc. The plinth area along with a share of all common areas
proportionately divided amongst all unit owners makes up the Super Built-up area.
Sometimes it may also include the common areas such, swimming pool, garden,
clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.
 While Buying Property

How can knowing the Carpet Area, Built-Up Area & Super
Built-Up Area of a flat help me in purchasing a flat?

This break up is extremely essential as builders can place anywhere from 65% to 85%
per cent of the super built area as carpet area. That means, if the price is quoted as 1,000
sq ft super built up area, the carpet area could be anywhere from just 650 sq ft to 850 sq
ft. If this break up is not mentioned in the agreement, demand that the vendor/ builder
mention it in the sale deed.
 While Buying Property
Should I inspect a property before buying it?

Yes. It is important to inspect the property, probably this is the largest single investment
you will ever make. You should know all the details of the property and need for any
major repairs / modifications before you buy. You can crosscheck the commitment made
by builder and actual implementation. A close inspection points out the positive aspects of
the property, as well as the maintenance that will be necessary to keep it in good shape.
After the inspection, you will have a much clearer understanding of the property you are
about to purchase.

Few important points to check while inspecting…

•Plumbing systems, drainage, water faucets and sanitary fittings.

•Electrical systems, circuit breakers, wires, capacity of the electric meter, functioning of
light fittings

•Roof, walls, ceilings, floors, paint work.

•Foundation, basement and visible structures.

•Doors and windows, latches, locks.

•Structural stability of the building.

 While Buying Propertyc
Checklist for buying residential or commercial property.

·Identify the property you wish to purchase

·Crosscheck of current market rates of property in the vicinity and last known
transactions, current market trends.

·Formulate commercial terms.

·Distinguish between negotiable and fixed terms and conditions of the contract, eg. Price,
payment schedule, time of completion etc.

·Avail of services of Propmart for legal opinion, valuation or property related matters.

·Check for clear titles of the property. Ask for photocopies of the all deeds of title related
to the property to be purchased. Examine the deeds to establish the ownership of the
property by seller, preferably through an advocate. Ascertain the survey number, village
and registration district of the property as these details are required for registration of the
sale. Previous encumbrances and loans, if any on the property must be cleared before
completion of purchase of the property.

·Finalise commercial terms of purchase of the property. Ascertain transfer fees, stamp
duty and registration charges to be paid on purchase of the property.
c
 While Buying Propertyc
Checklist for buying residential or commercial property.

·Ascertain outgoings to be 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 (a) society (b) the income tax authority (c)
Municipal Corporation (d) the competent authority under the Urban Land Ceiling and
Regulation Act (e) any other authority.

·If you are looking for loan for property purchase, contact financial institutions and ask for
a pre approval letter, many options are available for loans. Propmart can also assist you
for loan requirement.

·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 and
check the receipt of original documents from the Vendor of the property.

·Make sure that property holder’s name is changed in all related records, e.g. society,
Electricity Company, municipal corporation, Index II etc.
 While Buying Property

What is a Sale Deed?

Sale Deed also known as conveyance deed, is a document by which the seller transfers
his right to the purchaser, who, in turn, acquires an absolute ownership of the property.
This document is executed subsequent to the execution of the sale agreement and after
compliance of various terms and conditions detailed in the sale agreement.
 While Buying Propertyc

What is a Draft Sale Deed?

A draft Sale Deed, containing full details of the parties, advance amount paid, mode of
balance amount payable, receipt of the balance amount by the seller, handing over the
original documents of the property, handing over the possession of the property, handing
over the authorization letter to transfer power and water meters, signing of the application
for transfer of khatha, title of the seller of the property, indemnifying the purchaser in case
of defect in the title, easement rights, will be prepared by the purchaser's advocate. Such
draft Sale Deed should be captioned as draft Sale Deed and shall be signed by the
purchaser's advocate.
 While Buying Property

What is Khata?

A Khata is an account of assessment of a property, recording details about the property

such as size, location, built up area and so on for the purpose of payment of property tax.
It is also a kind of identification of the person who is primarily liable for payment of
property tax. It is one of the required documents in case you require a building licence,
trade licence or loan from banks or any other financial institutions.
 While Buying Property

What is the difference between a Khata and a Title Deed?

A khata is an account of assessment of a property for the payment of tax. The khata does
not confer ownership. However, the title deed is the document through which a person
derives a title or ownership of the said property.
 While Buying Property

What Is Leasehold Property?

Leasehold Property is property leased to a lessee for a stipulated period. The Lessee
pays lease premium and annual lease amount as fixed and mutually agreed by the
Lessor and lessee. The land ownership rights remain with the Lessor and a prior sale-
permission is normally required if you plan to transfer the property.
 While Selling Property

When is a sale of immovable property concluded?

The sale of immovable property is concluded on payment of the entire consideration

amount, registration of the document of sale and handing actual possession of the
property to the purchaser.
 While Selling Property

Is it compulsory to register documents for the sale of

property?

Yes. Documents for sale/transfer of any immovable property of the value exceeding INR
100/- are to be compulsorily registered in the jurisdictional office of the Registrar of Sub
Assurances.

c
 While Selling Property

Does one have to pay any amount for registration of the

sale/transfer documents?

Yes. Registration of sale/transfer documents will involve payment of registration fee, as

prescribed in the Registration Rules and as applicable in the States in India, where the
Property is situated.
 While Selling Property

Are there any formalities to be completed or forms to be filed

on execution of the Sale Deed or document of transfer?

Yes. The formalities and forms may vary from State to State depending on where the
property is situated.

Every State has its set forms under the Registration Rules that are required to be filled
and filed along with and at the time of Registration of Sale Deed/Transfer Deed.

Under the provisions of the Income Tax Act and Rules for a transaction of sale, it is now
compulsory for the Purchaser and Seller to give their Permanent Account Number and in
the event of either the Seller and/ or the Purchaser would be required to fill Form 60 of the
Income-Tax Rules.

In case of either the Purchaser or the Seller being a Non-Resident Indian, not assessed
to tax in India, such a Party would be required to file Form 60 of the Income-Tax Rules.
 While Selling Property
Checklist for selling property, whether residential or
commercial.

·List out all deeds of title related to the property under sale. You may be required to give
photocopies of the deeds to the potential purchaser. Ascertain the survey number, village
and registration district of the property as these details are required for registration of the
sale.

·Prevailing market rates in the vicinity, current market trends and last known transactions.

·Formulate commercial terms i.e. price, payment schedule, transfer fees, statutory
charges eg. stamp duty. Distinguish between negotiable and fixed terms and conditions of
the contract eg. Price, payment schedule, time of completion etc.

·Avail of services of Propmart.com. Get assistance from Propmart to get best value of
your property and hassle free transaction.

·Finalise commercial terms of sale.

·Obtain, if applicable, consent, permission, sanction no objection certificate of various

authorities such as the.

(a)Society (b)the income tax authority (c)Municipal Corporation (d)the competent authority
under the Urban Land Ceiling and Regulation Act (e)any other authority.
 While Selling Property

Checklist for selling property, whether residential or

commercial.

·Check if the purchaser will be taking a loan for payment of the consideration amount. Ask
for a pre approval letter from the lending institution.

·Permanent Account Number of Purchaser under Income Tax law.

·Payment of stamp duty on the formal agreement or document for transfer of the property,
signing of document by both parties and registration.

·After receiving the entire sale price hand over legal possession of the property alongwith
documents of title in original.

·Change name of the holder of the property to the purchaser in the records of the society,
electricity company, municipal corporation, Index II etc.
 While Selling Property

I want to sell my property, which are the documents a

prospective buyer need from me?

·A buyer may ask for photocopies of original sale deed, tax paid receipts, encumbrance
certificate.