Advance Payment in a property deal is very common. Just to clarify that here i am not referring to advance payment or token money to initiate a property deal. It is must pay a token money or advance else there is no financial commitment from buyer's end to close the property deal. The quantum of token money, i discussed in my post on the same topic and may vary from case to case basis. In the idealistic scenario, after the payment of token money, the buyer should make balance payment only at the time of property registration. Unfortunately, we don't live in the idealistic world. Besides the ... Read More
What if Circle Rate is more than Market Value?
"Circle Rate is more than Market Value" A Typical Buyer's Dilemma what should i do?. Circle Rate is minimum value at which the property can be sold or purchased. Whereas market value is the rate at which actual transaction takes place. Circle Rate is also known as Guidance Value, Ready Reckoner Rate, Govt Value, Floor Price etc. Whereas Market Value is also known as Consideration Value. In layman terms, Circle Rate is Market Value of the property as per local state government. Few years back the situation was reverse i.e. Market Value was much higher compared to the Circle Rate. For example, ... Read More
How Builders Overcharge Property Buyers?
Let's accept the fact that Builders do overcharge Property Buyers. You must be wondering how, the answer is, by taking undue advantage of the multiple factors. These factors are ignorance of property buyers, loopholes in the legal agreement and lastly through Bullying. Though i have not observed any such incidences with very reputed builders. One of the reason is that reputed builders already include the brand premium in the cost of the property. The poor buyer has no other option but to oblige. In this regard, i like the English word "Standard". It is now a common practice to regularize ... Read More
How to Save Stamp Duty & Registration Charges
How to save stamp duty and registration charges is a tricky question. Before discussing the same, lets understand what is stamp duty. According to wikipedia, Stamp Duty is a tax that is levied on documents. At the time of transferring ownership of property i.e. Registering Sale Deed, the buyer need to pay stamp duty & registration charges to Govt. The Stamp duty and Registration Charges vary from state to state. Some states offer discount on Stamp Duty e.g. if the property is registered in the name of a woman then you can save stamp duty. In Delhi stamp duty to be paid is 6% but if the ... Read More