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Buying / Selling Property FAQs
NRI' s FAQ
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| Buying / Selling Property FAQs |
Q: 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. |
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Q: 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. |
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Q: 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:
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| Approved Layout Plan
Approved Building Plan
Title Ownership Documents
Complete Search |
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Q: What is meant by Stamp Duty?
Stamp Duty refers to charges in the form of taxes levied by the State Government. |
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Q: 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. |
Q: 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. |
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Q: 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. |
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Q: 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:
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Q: 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. |
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Q: 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. |
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Q: Is a GPA revocable?
Yes, a GPA can be either revocable or irrevocable, on the basis of the GPA created by one. |
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Q: 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. |
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Q: Can a GPA flat be converted into a Freehold flat?
No, GPA is a non-convertible document. |
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Q: 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. |
