A property may command a particular rate in the open market. This is called its market value. Stamp duty can either be based on the property's market value or on its agreement value. Generally, stamp duty is fixed according to whichever is greater.
Many factors must be taken into consideration before the market value of a property is fixed. Some of these are: The property type, the location, the quality of the construction and specifications, the infrastructure provided, and the maintenance levels. More important is the factor of supply and demand. After taking all these into account, the valuation process is complete.
When real estate agents are asked to evaluate a property, they generally do so basing it on arbitrary information of recent transactions of similar properties in the vicinity. This, while offering a broad-spectrum idea of the market value, is not as precise as an official valuation. For instance, in case one needs to pledge the property against a loan, the loan approval process is quicker and easier if the property is certified by an official evaluator. Many banks demand valuation certificates before issuing loans against properties. Another advantage of official evaluation is that you may be sanctioned a higher loan amount.
A certification is also necessary when the precise value of the property has legal connotations, as in the case of will statements, property insurance, balance sheets, etc. A final benefit of official evaluation is that it becomes a handy negotiating tool on resale of the property.
When a piece of property is given out or 'leased' to an individual (the 'Lessee') for a stipulated period of time by the 'Lessor' or owner, this is referred to as Leasehold Property. As a lease premium, a certain amount is fixed by the Lessor. The ownership rights to the property remain with the Lessor.
When ownership right to a property is given to a purchaser in consideration of a sum of money, this property is referred to as 'Freehold Property'. Unlike leasehold property, no annual or lease charges need be paid, and the freehold property may be re-registered and/ or transferred to the new owner.
The benefits are several: if one gets a leasehold property converted to a freehold one, one becomes a full-fledged owner, taking possession of the sale deed and getting it registered. A freehold property has more marketability and can be sold, mortgaged or pledged as standing security, which is not possible in the case of leasehold property.
If the property is transferred within three years from the date of purchase, income tax exemption under Section 54F of the Income Tax Act is not applicable. Tax would therefore have to be paid.
An agreement of sale document, accompanied by actual possession of the property by the buyer, marks the conclusion of a sale. Usually, the entire amount agreed upon is handed over at the time of possession.
The area of an apartment or building, excluding the area occupied by the walls, is known as the carpet area of the property. This is the area actually used, wherein a carpet can be laid. When the area of the walls, including the balcony, is added to the carpet area, this forms the built-up area. Finally, the built-up area including the area of the common spaces like lobby, lifts, stairs, garden and swimming pool is known as the super built-up area.
The actual area owned by an individual is legally the basis for calculating maintenance charges.
A Sinking Fund is a contingency fund, collected so that if the building needs repairs, reconstruction, structural additions or alterations in the future, the society can use it for this purpose. All Co-operative Housing Societies are required by law to collect a Sinking Fund. The General Body fixes the amount to be contributed by each owner, usually at least 1/4 percent per annum of each apartment's cost. This excludes the cost of the land. The fund may be utilized on a resolution being passed at the General Body meeting, and with prior permission of the Registering Authority.
Depending on the particular case, a lease agreement can be reached in one of two ways:
Where the lease contract is from year-to-year/ exceeding one year's rent/ reserving yearly rent, then a registered instrument can be created, which both lessor and lessee must execute.
In all other cases, an oral agreement followed by delivery of possession is generally considered sufficient.
When a gift of property is made, a gift deed needs to be drawn up by a lawyer. Stamp duty on the market value of the property also needs to be paid, as well as the re-registration charges.
It is illegal to put residential properties to commercial use. Nevertheless, service-based industries are allowed to operate from residential areas, on one condition: they must vacate the premises if complaints are received from other residents.
It is necessary to check with the Registrar of Companies that the property in question is not mortgaged or being used as security against a loan. If either is the case, the property is not considered freehold.
Jain Heights properties are approved for housing loans by all leading financial institutions. They may be contacted to find out the finance option that best suits your individual requirements.
The maximum loan amount is 85% of the cost of the property, including car park, registration fee and other costs.
The answer to all three questions is yes! When you buy a Jain Heights freehold property, you can rest assured that all legalities and sanctions are taken care of.
Most certainly. We encourage all prospective owners to visit our sites, to view the model home if completed, and the work in progress. Please call us at +91 80 2213 1390 / 92/ 93 to arrange a site visit, any day between 9 am and 8 pm.
If you have other, property-related questions you need answered, please write to email@example.com, and we will get back to you.