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
Bank Auction Property – Check Out The Recent Changes in SARFAESI Act
Bank Auction Property is a good news for people who would like to buy a property at a cheaper rate. Govt and RBI have put a huge amount of pressure on banks to clean their books. Therefore, you must have observed mega auction of properties conducted by almost all the banks. At the same time, let me be honest that bank auction property is high risk investment. You have to be extra cautious and vigilant while participating in such auctions. You may check my post, Complete Guide to Bank Auction Process for more details. Recently, the Govt of India passed The Enforcement of Security Interest and ... Read More
Property Registry – 10 Most Common Types of Registration
Property Registry is one of the most curious subjects for any buyer. Predominantly, it depends whether you are buying a resale or under construction flat / property. Property Registry is most crucial and a final step of property purchase. Normally, a buyer gets confused because of unique suggestions from builders/lawyers on property registry. In many cases, banks also impose conditions on property registry. Each stakeholder has it's own motive/logic on how to execute property registry. The stamp duty and registration charges play a crucial role in this regard. The prime objective of a buyer ... Read More
Property Registration Charges – Least Known Ways to SAVE
According to the ruling of Honorable Supreme Court of India, Property Registration is mandatory to transfer the title of the property through conveyance deed/sale deed. When my father bought first property in 1986, he skipped Property Registration. He bought a property through GPA (General Power Attorney). In those days, it was perfectly legal to transfer the property title through GPA and was common practice. There was always a hidden risk of a future dispute. The only reason for this arrangement was to save Property Registration Charges :). It was a revenue loss for the govt and secondly, ... 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