Frequently Asked Questions
Questions about Buying
In addition to the price of the property, the buyer needs to pay the registration cost, stamp duty on registration, service tax, Value Added Tax while buying a property.
Before signing the purchase agreement, the buyer should check the details like base price mentioned, additional charges like PLC, club membership, carpet area along with facilities, taxes applicable, payment mode, occupation certificate, building insurance, schedule of possession and penalty clause in case of project delay.
There are many factors to be considered at the time of property purchase like the locality or the area of the home, whether all the basic and civic utilities are available, transport facilities, construction quality, the carpet, built-up and super built-up area of the flat, provisions of basic features like water and power supply, and most importantly, reputation of the developer.
Stamp duty refers to the tax paid to the government just like sales tax or income tax and should be paid on time and in full. A stamp duty paid document is an important and legal instrument to be taken care of.
As per RERA (Real Estate Regulations Authority), the buyer is entitled to get a refund of the amount along with the interest and compensation in case of project delays. He can lodge his customer complaint under RERA court and take legal help.
A Freehold Flat is the one which has a whole sole owner of the property with the ownership being complete and unconditional as per the regulations of the law of land and does not have any kind of involvement of any lessor/lessee.
A buyer can choose a good developer by getting references from people, finding out how happy they are with their homes, construction quality and builder’s conduct. They can get quotations from shortlisted builders in writing, mentioning all the details of the project like site maintenance, necessary approvals and permissions, required clearance, material supplies, charges, etc. It is very important to check the reputation of the builder.
In case of a multi-storey apartment, the apartment owners and tenants have to pay many other charges for the services and amenities enjoyed like the Preferential Location Charge, External electrification charges, Firefighting equipment charges, Infrastructure development charges, External development charges, Car parking space, Club membership etc.
Questions about NRI services
While purchasing property in India, the NRI needs to be aware of the market trends of property rates in that area, check all documents related to the property, check for approved layout plan, all clearances from municipality & electricity etc, check the building bye-laws in that area to find out violations if any and confirm whether all the charges and taxes have been duly paid or not.
As per RBI, for housing loans being given to NRIs, the loan amount should not exceed 80% of the property value. Their own contribution in the loan amount as well as repayment of the loan is to be done via foreign remittances through normal banking channels.
No, there are no limits on the number of residential properties that can be purchased by an NRI but repatriation is allowed only for two such properties.