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Faq

  • Who is liable to pay Stamp Duty-the buyer or the seller?

    The buyer is liable to pay the stamp duty.
  • What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any?

    A freehold property flat is one where there is a whole and sole owner/s, ownership is full and unconditional and there is no lessor / lessee involved.
  • 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 of property is the price at which there is a willing buyer and a seller agreeing to the transfer the property at an arms length transaction. Stamp duty is levied on the ready reckoner rate or the agreement price, whichever is higher.
  • Does availing of a teaser loan make sense?

    Availing of a temporarily discounted home loan without taking a protracted view of ones financial position is not advisable. One should be aware of the manner in which ones finances will be affected after the teaser period is over and real-time lending rates kick in.
  • What are the risks involved in residential property investment?

    The risk factor in real estate investment lies in the possibility of buying at a higher price and having to sell at a lower one in a depressed market. It is also risky to try time the market to discern the 'best' time to invest. Much like in the stock market, it is impossible to predict the point of lowest ebb in the real estate market. The danger in delaying investment too long is two-fold - firstly, one may lose out on the best properties, and secondly, the market may pick up ahead of one's predictions, meaning that the lower rates may no longer be available.
  • What are the tax implications of sale of any house property, commercial or residential?

    For the purpose of Real Estate the Long-term Capital gain would be only if you hold the property for more than three years, then it is subjected to tax @20%. In case you sell the property in less than three years time then it would become short-term Capital Gain and the same is required to be taxed at the prevailing tax schedule of the rate applicable to the assessee depending on his other incomes.
  • What is the difference between built up area, super built up area, and carpet area?

    Carpet Area: Carpet Area of a property is defined as the net usable area from the inner sides of one wall to another. Carpet Area comprises of the carpet area of the demised premise, toilet areas within the demised premises, AHU room/s within the demised premises and dedicated service areas for the demised premises.
    Built-up Area (BUA): BUA consists of carpet area, area covered by inner and outer walls and additional areas mandated by the authority such as flower beds, dry balcony etc.
    Super Built-up Area (SBUA): SBUA consists of BUA and the proportionate area under the common spaces of a building like lobby, staircases and elevators.
  • Does it make sense to buy a home now?

    That depends on ones actual objectives and level of need. If one is a first-time home buyer, attempting to time the market makes little sense. Any correction will be a brief phenomenon, and prices inevitably rise again. This is a risky game that only investors should play.
  • What are all the important documents one should check before buying any property?

    While purchasing a property, you have to look at the approved layout plan, approved building plan, ownership documents, carryout title search, etc.
  • What are the possible returns of investing in commercial versus residential property on rent?

    The rental yield for commercial property is usually 9-12%. In contrast, the yield for residential property is much lower at 3-4%.

realestate glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
  • Abatement notice

    A notice served on the owner(s) or occupier(s) of a property from which a private nuisance arises, warning them of the intention to enter on the land in order to abate the nuisance.
  • Absolute title

    The right of ownership of a mortgage deed, which gives the right, in certain specified circumstances, to demand repayment in full, of the outstanding debt than the due date. Or a clause in a deed or contract, which provides for the early termination of an exciting interest in land, in certain specified circumstances, thereby advancing the future interest.
  • Agreement for lease/sale

    A contract to enter into a lease (or sale), which in order to be enforceable either must be evidenced in writing and signed by the person against whom action is taken for the breach of the alleged contract and there must be a sufficient act of part performance.
  • Alternative user value

    The value of land and buildings which reflects a prospective use which is different from that of the current use.
  • Anchor tenant

    One or more department or variety chainstores, or supermarkets, introduced into a shopping centre in key positions to attract the shopping public into the centre for the purpose of encouraging other retailers to lease shops en route. The larger the developments the more anchors required.
  • Asset valuation

    In the property market this expression is applied to the valuation of land and buildings or plant and machinery. The term is often used to describe an expert opinion of the worth of a property which may be incorporated into company accounts, where the ownership of the asset is not necessarily to be transferred but the valuation is required for the company takeovers, share flotation or mortgages.
  • Assignment

    The transfer of a property interest, especially a lease, from one party to another.
  • Atrium

    An entrance hall of a building, often rising through a number of storeys and containing lifts, reception areas and plants. Originally the hall or chief apartment of a Roman house.