DEFINATIONS

  1. What is Carpet Area?
    • According to the Real Estate (Regulation and Development) Act, 2016 (RERA), carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’.
  2. What is Built-up Area?
    • Built up Area is the actual used area of an apartment, It comprises of carpet area plus the thickness of outer walls and the balcony.
  3. What is Super Built-up area?
    • Super Built-up Area is the built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs etc. plus chargeable area of the open terrace attached to the apartment etc.
  4. What is Agreement for Sale?
    • Agreement for sale contains the terms and conditions of sale of a apartment/flat and/or unit agreed upon by the parties, and binds them. An agreement to sell is the basic document which governs obligations and rights of the parties thereto.
  5. What is Total Consideration?
    • Total Consideration means the amount amongst others payable for the unit/flat and/or apartment and the properties appurtenant thereto but does not include other amounts, charges, security deposits, stamp duty, registration fees, municipality tax and any other charges/tax/cess/levies etc levied by any authority that may be payable by purchasers.
  6. What is Earnest money?
    • A certain percentage of Total Consideration amount as mentioned in the sale agreement shall be treated by the seller as Earnest Money, which shall be liable to be forfeited by the seller in the event of breach of any of the terms and conditions herein contained by the Purchasers.
  7. What is Facility Management Company?
    • Facility Management Company means the person(s)/agency/body/ appointed by the Developer or the Association as the case may be who shall carry out the maintenance and upkeep of the said Building and who shall be responsible for providing the maintenance services within the said building.
  8. What comes under common parts and portion?
    • Common parts and portion shall mean such area, parts and portions and facilities of the building available for use and enjoyment of all the Flat Owners and/or occupiers.
  9. What is Force Majeure?
    • Force Majeure means any event or combination of events or circumstances beyond the control of the Developer which cannot (a) by the exercise of reasonable diligence, or (b) despite the adoption of reasonable precaution and/or alternative measures, be prevented or cause to be prevented and which adversely affects the Developer’s ability to perform obligations.

POSSESSION & REGISTRATION

  1. What is Completion date?
    • It is clarified that the Completion Date as specified in this Agreement is the time which may be taken, subject to prevention on account of Force Majeure Events, for the completion of construction and the issuance of Offer of Possession Letter to the Purchasers.
  2. What is Completion certificate?
    • A completion certification (CC) is document that a builder obtains from the municipal authorities after the completion of a building. The CC attests to the fact that the new building is constructed and completed in accordance with all the safety norms and regulations.
  3. What is Possession letter?
    • The possession letter is issued by the developer in favour of the buyer stating the date of possession of the property.
  4. When will the maintenance charges start?
    • The maintenance period will start from the date the builder offers possession to the customer.
  5. What is Holding charge?
    • In the event that the Purchasers fail to take over possession of the Unit by making requisite payments as stipulated in the Offer of Possession Letter within a period, the Developer shall be entitled to levy upon the Purchasers, holding charges as defined in the sale agreement.
  6. What is House Rules, Club Rules & Restrictions?
    • The norms, rules and regulations which has to be adhered by the all the buyers for maintenance and use of their Flat/Unit and the Common areas including the club, if any in the Project
  7. What is Fit-out rules and guidelines?
    • The Rules and regulations which shall state the manner in which the interior work or the fit-out work in various units is to be conducted.
  8. What is Deed of conveyance?
    • Deed of conveyance is a document that a seller executes with the buyer, thereby transferring the ownership of the property. The execution of the document takes places after construction is complete, completion certificate is received and all the terms and conditions present in the sale agreements are fulfilled.
  9. What is the process of registration and when does registration takes place?
    • Registration of the Conveyance deed will be done only on completion of project and on payment of the entire sale consideration including the deposits. Registration will be facilitated through a legal consultant appointed by the developer and on payment of the registration fees by the Buyer which is presently 1% on the market value of the property.
  10. What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?
    • Market value means the fair price declared by government at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty which presently is 7% is payable on the agreement value of the property or the market value whichever is higher.

EXTRA CHARGES

  1. What is Transformer & Cabling charge?
    • Charges and expenses for procuring transformer, sub-station, electricity connection HT/LT and laying of cables for the building complex.
  2. What is Generator connection charge?
    • Generator connection charge is taken to provide power backup in the individual units.
  3. What is Sinking Fund?
    • Sinking Fund is a fund created for up gradation of services from time to time and in connection therewith various costs which are to be incurred including capital costs which may have to be incurred for the purpose of repairs and/or replacement of the various equipments and/or installations.
  4. What is Municipality Deposit?
    • This is a refundable deposit obtained from the buyers to ensure mutation of flats are caused by buyers. In the event the mutation is caused by the buyer immediately on notice of possession, the entire deposit is refunded to the buyer. In the event the mutation is not done then municipal taxes accrued in respect of the flat is paid out of the deposit money.
  5. What is Legal / Documentation and professional charge?
    • Legal / Documentation and professional charge incurred for preparation of Agreement for sale and the Deed of conveyance and/or transfer deed in respect of the said Flat/Unit including all other deeds, documents and instruments as may be necessary and/or required.
  6. What is Maintenance charge?
    • Maintenance charge shall include the proportionate share of charges/expenses in maintaining all the facilities and amenities comprising the general common elements irrespective of use/availability.
  7. What is Nomination/Transfer charge?
    • Nomination / Transfer charge means the charge that is levied on any transfer /assignment /nomination by the Purchasers of the said unit before the Deed of Conveyance is executed by the Developer.
  8. What is Association formation fee?
    • Costs and charges for formation of association.
  9. What is Club maintenance deposit?
    • Deposit provided by the buyers for maintenance and upkeep of the Club, if any in the Project.

TAXATION

  1. What is GST and its impact in real estate?
    • Goods and Services Tax (GST) is an indirect tax which was introduced in India on 1 July 2017 and was applicable throughout India which replaced multiple cascading taxes levied by the central and state governments. Under GST, goods and services are taxed at the following rates, 0%, 5%, 12%, 18% and 28%. The effective GST rate on under- construction real estate projects will be 12% after one third abatement for land cost on 18%. However, GST would not be applicable on the units sold after availing completion certificate.
  2. What is TDS on property?
    • The Finance Bill 2013 has proposed that purchaser of an immovable property (other than rural agricultural land) worth ₹ 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor.
  3. Who is responsible to deduct the TDS on sale of Property?
    • According to rules in respect of tax deducted at source, buyer of the property would have to deduct the TDS and deposit the same in Government treasury.
  4. I am Buyer, do I required to procure TAN to report the TDS on Property?
    • Buyer or Purchaser of the property is not required to procure Tax Deduction Account Number (TAN). The Buyer is required quote his or her PAN and sellers PAN.
  5. What if I don’t have the PAN of the seller, is it Mandatory?
    • PAN of the seller is mandatory. The same may be acquired from the Seller before effecting the transaction.
  6. What is the due date of payment of TDS on sale of property?
    • As per the CBDT notification no. 30/2016 dated April 29, 2016, the due date of payment of TDS on transfer of immovable property has been extended to thirty days (from existing seven days) from the end of the month in which the deduction is made.
  7. What is Form 26QB?
    • The online form available on the TIN website for furnishing information regarding TDS on property is termed as Form 26QB
  8. What is Form 16B?
    • Form 16B is the TDS certificate to be issued by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account.
  9. I have filled Form 26QB and made the payment online, but I forgot to save the Acknowledgment Number generated at TIN website. From where can I get the Acknowledgment Number?
    • Acknowledgment number for the Form 26QB furnished is available in the Form 26AS (Annual Tax Statement) of the Deductor (i.e. Purchaser/ Buyer of property). The same can be viewed from the TRACES website (www.tdscpc.gov.in) or Taxpayer can also click the option ‘View Acknowledgment’ hosted on the TIN website. Taxpayer needs to enter PAN of the Buyer and Seller, Total Payment and Assessment Year (as mentioned at the time of filing the Form 26QB) to retrieve the Acknowledgment Number.
  10. What are Capital Gains on property purchase?
    • Property is considered a capital asset and Capital Gains Tax is levied on the gains arising from the sale of property. Such gains are calculated after adjusting the cost by applying indexation inflation rate, transfer and renovation charges.
  11. What is the difference between long-term Capital Gains and short-term Capital Gains?
    • If the house is held for less than two years prior to its sale, it is termed as a short-term capital asset and any gain arising from the sale is treated as a short-term Capital Gain. There are no tax exemptions for short-term Capital Gains and one needs to pay it according to the applicable tax slab. However, if the property is sold after holding it for more than two years, it is treated as a long-term capital asset and the gain arising from it is called the long-term Capital Gain. Such gains attract a flat exemption rate of 20%.
  12. How can one qualify for exemptions on the Capital Gains Tax?
    • There are a few exemptions available for long term Capital Gains, if you: Buy or construct a new house: If you build a new house or buy one from the money you receive from selling a property, you are exempted from paying the tax on Capital Gains. However, the new purchase should be done either one year before or within two years of sale and the construction should be completed within three years from the date of transfer. The new property bought or constructed should not be sold within three years from the date of its purchase or date of completion of construction. Capital Gain Account Scheme: Through the Capital Gain Account Scheme (CGAS), you can save the received money in designated banks. CGAS helps you in buying time to look for suitable investments as it serves to inform the Income Tax department that you plan to invest the money received; but at a later date. Invest in Bonds: You can also invest in financial assets or bonds to save tax. Such bonds are issued by the Rural Electrification Corporation and the National Highway Authority of India and should be bought within six months of transferring the property. You can invest a maximum of Rs 50 lakhs through these bonds.

HOME LOAN

  1. I intend to take home loan. What is the procedure? Which banks can I approach?
    • Our projects are approved by various nationalized and private sector banks / financial institutions. You may wish to approach any of the banks which you are comfortable with. We will be providing you the project approval letter received from that particular bank or any other details are required by you to approach respective bank for home loan application.
  2. What are the documents needed to apply for a home loan?
    • Proof of Identity: PAN, Driving license, Voter ID, Aadhar Card Proof of Income: Salaried Applicants: Latest 3 Months salary slip showing all deductions and Form 16 for the last three years. Self Employed Applicants: IT returns for the past 2 years and computation of income for the last 2 years as certified by a CA Bank Statement: Past 6 months

NRI

  1. Who is a non-resident Indian (NRI)?
    • A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily immigrated to another country for six months or more for employment, residence, education or any other purpose.
  2. Who is a person of Indian Origin (PIO)?
    • A Person of Indian Origin (PIO) is a person of Indian origin or ancestry who is not a citizen of India, but is a citizen of another country. A PIO might have been a citizen of India and subsequently taken the citizenship of another country, or have ancestors born in India or other states.
  3. Can an NRI/PIO purchase immovable residential / commercial property in India?
    • Yes, under general permission granted by the RBI an NRI/PIO can purchase a residential / commercial property in India. However, NRIs cannot purchase any agricultural land or plantation property.
  4. What documents are required by an NRI/PIO to buy an immovable residential/commercial property in India?
    • PAN card, OCI/PIO card (In case of OCI/PIO), Passport (In case of NRI), Passport size photographs, Address proof
  5. What mode of payment can an NRI/PIO make to purchase a residential property in India?
    • Under the general permission, an NRI/PIO may purchase a residential property in India by funds remitted to India through normal banking channel or funds held in his NRE/FCNR (B)NRO account. No consideration shall be paid outside India or from domestic resident accounts if held by such NRIs.

LEGAL & ARCHITECTURE

  1. What are the documents that one needs to check for, while buying commercial or residential property?
    • While buying a property you always need to check on the approved building plan including the layout plan and ownership related documents, . You may also like to do a title and document search through the professional services of a competent advocate.
  2. What is the procedure for booking?
    • After you have finalized the apartment of your choice, you have to provide a signed and filled up booking form along with KYC documents and cheque.
  3. What kind of agreements do I need to enter into while buying the apartment?
    • You will have to enter into an Agreement for sale and upon the completion of project construction & offer of possession and subsequent clearance of dues we shall execute the conveyance deed. It is pertinent to mention that Agreement for sale can also be registered on payment of stamp duty by the buyer.
  4. Can I authorize someone else to register my property by granting him Power of Attorney?
    • Yes, you can execute Specific Power Of Attorney to get your property registered by someone else.
  5. What happens if I cancel my booking?
    • If at any point of time you decide to cancel your booking after agreement, then the seller shall be entitled to forfeit the Earnest Money Deposit and refund the balance amount as per the timeline mentioned in the sale agreement.
  6. What happens if I intend to sell my apartment to somebody before registration?
    • You can Transfer your apartment to any intending purchaser by entering into a nomination agreement before registration by giving a request letter and paying the nomination charges. However your presence would be mandatory during registration and incorporation of conveyance deed.
  7. Can we make changes to the Apartment design?
    • The specifications and designs have been carefully worked out. Considering the number of apartments and the delivery date, customization will not be possible in the collective interest of all the purchasers.

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