When a piece of property is given or ‘rented’ to an individual (known as the ‘Lessee’) for a stipulated period of time, by the owner of the property (known as the ‘Lessor’), the property is referred to as Renthold Property. A certain amount is fixed by the Lessor to be paid as rent premium and annual rent. The land ownership rights remain with the Lessor. Transfer of property requires prior permission.
Typically, if a real estate agent is asked to judge the value of a piece of property, he would do so based on information of recent sales or purchases of similar properties in that area. Though this may give a fair idea of the property’s market value, an official property valuation would carry more weight. E.g. if you need to use this piece of property as a security against a loan, the bank’s loan approval process would be faster and smoother if the property is certified by an official valuator. Many banks now insist on valuation certificates before issuing loans using properties as security. The value thus certified may also have chances of getting a higher amount of loan sanctioned. Another benefit of official valuation is that it is a useful negotiating tool when selling the property. Such certification also becomes essential in situations where the correct value of the property has a legal bearing such as, a will statement, insurance papers, business balance sheets etc.
The valuation process evaluates the market value of the property. Demand and supply forces operating in the market, as well as other factors like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken into consideration before the market value is decided.
The home that they buy is the security with the bank mortgaged till repayment of loan.
DOCUMENTS REQUIRED FOR REGISTRATION:
THINGS TO BE INCORPORATE IN NEW SALE DEED:
Property under mortgage can be gifted with prior permission of the mortgage banker. But the absolute title to the property would be obtained only after release of the mortgage by the mortgagee. Yes you have to pay stamp duty and registration fees.
When you are planning to buy any property, first and foremost thing is to check down the title deed of that property. The property title deed is the legal document which proves the ownership of property. You should make sure through the title deed that the property is in the name of solely a seller and no one else and he has all rights to sell it. The best practice is to get legal opinion just to make sure that there are no loop holes. Many property owners take bank loan by pledging their property. So check they have paid the entire amount due when you are going to buy that property. If they have paid the entire amount due then the bank would have issued them a Release certificate. For ownership to pass validly, a registered sale deed duly stamped will need to be executed. In the absence of that, you will not get valid title to the property.
Before buying the property a complete title search of the property must be done. Check all the chain deeds to the property and plan sanction approvals. You can engage us for legal opinion. erty.
You need to apply for all the certified copies of the documents. Also file an FIR for the missing documents. Broadly the documents include Sale deed, Sale agreement, Sanction plan, Encumbrance certificate and allotment certificate in addition to details of land ownership to name a few important documents required for sale.
NO, any such development with partially approved structure and partially without approval comes under the category of illegal construction. In case you are considering buying a flat in such property buy on the floors approved. Also do thorough legal due diligence of the approvals and ownership of such property before buying.
The top 5 things that you must keep in mind before buying a resale property . a. Get in touch with real estate service providers like us – Before buying a resale property, you must get in touch with real estate agents in the vicinity as they are in a position to tell you details about the seller. They can help you with registration, stamp duty payment and other paper work. b. Documentation – One needs to be extra careful about documentation while buying a resale property. Check that the documents regarding original purchase and any transfer of title are properly stamped and registered. c. Clear title – You must establish the title of the seller to verify the ownership. All the documents regarding the property need to be clear of any conflict. d. Clear of any loans – Make sure that the property is clear of any loan liability. Check if the documents are not mortgaged in the bank's custody against a loan by the seller. This also needs to be clarified in case you plan to take a loan against the property in future. e. Market valuation of the property – Make sure you do a market capital valuation of the property. In case you are buying the property from investment viewpoint, get technical experts to find out the returns from the property. .
While buying one has to see the same thing that a seller has all the documents showing his ownership n also see whether there are any other liabilities on the said property. Public notice helps in establishing this fact. So the buyer has to see the proper registered sale deed of the owner and tax receipts etc. Case to case some more papers may be required.
It is the estimated rent that you could get if the property was rented out. There are some factors that are key to consider while calculating annual value: 1. Market rent value: It is the rent/amount for which a similar property in the locality is leased out 2. Rent Control Act: Under the Rent Control Act, there is a standard rent fixed. It is expected that an owner should not receive rent higher than specified in the Rent Control Act 3. Municipal value of property: The municipal authorities take into account several factors in order to reach the municipal value. On this amount, the municipal taxes are charged. 4. Rent Received: The actual Rent received from the tenant also is an important factor considered while calculating the annual value of a property.
Relinquishment deed is a legal document/instrument where a person legally or formally gives up or releases his legal rights of the said property being relinquished in the name of some other person. This is one of the modes of transferring rights of an immovable property. As a relinquishment deed is a legal document by which a person formally gives up his claim to another person, the said deed must be systematically executed and registered as per law depending upon the needed compliances as per the statutory governance. Kindly note that one needs a good property lawyer for systematic legal compliances and needed documentations for drafting/making relinquishment.
Mostly bank decide your loan elligibility based on your net monthly income minus any obligation if exists . Also cibil score is a important parameter if the score is less on cibil or if any outstanding of credit card or personal loan is seen then bank decline the loan.
The Urban Land Ceiling and Regulation Act, 1976 was imposed on the possession and holding of vacant land by individuals in the urban areas. Under this Act, the vacant land was categorized under several heads depending upon the location, utility, nature & character of the vacant land and for every category of land a maximum permissible limit was imposed up to which an individual could possess and own vacant land. Any land held and possessed in excess of the permissible maximum limit, by an individual person, was prone to be acquired by the respective state governments after paying compensation for the same.
The legal possession of the Flat by the Owner is valid only with the Occupancy Certificate. Many builders and developers sell the property without this document leaving flat and house owners in the lurch. Although the certificate is withheld to penalise the builder/developer for not fulfilling the desired norms, it ultimately affects flat owners. In many cases, builders/developers disappear once the flat is sold and the owners face the music because it is difficult for them to resell or mortgage the property without the document.
To find out if a property has a clear title one must instruct a lawyer to do a due diligence search. Upon completion of Construction, the Builder receives a Completion Certificate from the Municipal Authorities. The Certificate documents the location and land identification of the Building, certifies if the Building is in accordance with Building Standards, e.g., Distance from Road, Distance from Adjacent Buildings, Height of the Building, and other approved norms of the Municipal authority as well as the Building Plan. While an OCCUPANCY CERTIFICATE, is the Permission to Occupy a Building, given by the Municipal Authorities, after verification of all supporting Documents, adherence to Building standards, Fire Safety standards for HighRises, Elevator and other Electrical Safety, provision for Water Supply and Disposal, etc. The legal possession of the Flat by the Owner is valid only with the Occupancy Certificate.
An occupancy certificate also known as an OC is issued by a development authority or municipal corporation to a newly constructed building. This is issued after inspecting the building with regards to adherence to the approved plans. It is essentially a kind of 'fitness certificate' and allows the residents to move in and stay. Without an OC, a building may be considered illegal and impact the availability of official utility connections like gas, water, power etc. If there is any installment remaining to be paid to a builder, make sure that such a final instalment is paid only on receipt of an OC. Ask your developer a copy of the OC and cross check it with the relevant authority to be doubly sure, especially in case of smaller builders in the unorganized sectors. The authorities who can give OCs are municipal corporations and development bodies like BDA.
Please go to www.findhomes.co.in and you can post your requirements. Our executive will contact you .
It is always good to settle for a villa rather than an apartment. : Please visit www.findhomes.co.in and look for better option available. We can help you to make better decisions and invest in this regard. One investment and resale (within next 11 months , with minimum tax impact) can help you invest your money in a villa/apartment at Whitefield. Please contact us for further clarification.
Charges for stamp duty is 6.67% and registration is 1%. It is calculated on the basis on value of property shown on paper by the property owner or value of property assesed by the Govt. which ever is higher.Stamp duty in Bangalore is 6 per cent of the total cost of the property. The final amount is calculated on the basis of the agreement value, or the ready reckoner rates decided by the state government.. The ready reckoner rates are revised periodically these depend upon the location, size, type of floor etc.
A leave and license agreement is an instrument/agreement wherein the licensor allows the licensee to temporarily occupy and use one portion of immovable property for carrying on his business for residential purposes. The licensor grants the leave and license to the licensee for a minimum period of 11 months and for this, the licensee shall pay to the licensor a fixed amount of license fee/rent money.
Service tax is included in the total costs incurred on a house that is paid to the developer. The developer, in turn pays this to the state government before completion certificate is given to the buyer. A builder or developer is liable to pay service tax if any payments are made by buyers, before the completion certificate is given. Hence, if a property is under construction, then as a buyer when you pay the booking amount, it will be considered as a payment towards sale before completion certificate is given. Therefore, you will be liable to pay service tax.
VAT is 5% and Service Tax is 4% of the value of the property, excluding land value.
When you are planning to buy any property, the first and foremost thing is to check down the title deed of that property. The property title deed is the legal document which proves the ownership of property. You should make sure through the title deed that the property is in the name of solely the seller and no one else, and he has all rights to sell it. The best practice is to get reviewed the property deed by an expert lawyer just to make sure that there are no loop holes.