As i mentioned in my previous post that i will write a separate article on Deed of Transfer of Rights. To understand the context & background of Deed of Transfer of Rights, I would request you to read the article How to Save Stamp Duty & Registration Charges before proceeding further. Deed of Transfer of Rights is executed to legally bridge the transaction gap between Sale Agreement Value and Sale Deed Value if the property is registered at Guidance Value or Circle Rate. Taking forward the same example of Mr A, who bought flat in Delhi for 1 Cr but registered at 67 Lacs as per circle ... 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
5 Must Have Clauses in Property Sale Agreement
Property Sale Agreement is most important document. It is different from Sale Deed though in some cases Sale Agreement is registered as Sale Deed. Sale agreement contain agreed upon Terms & Conditions between Seller & Buyer for the sale of property. It is legally binding on both the parties. It also specifies the date by which the transaction will be completed. In laymen terms, Sale agreement is a road map how the property transaction will be completed. On the other hand Sale deed is executed at the time of actual transfer of property i.e. transfer of ownership from seller to ... Read More
Commercial Property vs Residential Property
In life we come across many catch-22 situations when it becomes difficult to select any 1 option. One such dilemma is investment decision related to Commercial Property vs Residential Property. 1st Real Estate investment is always Residential as we feel more secure in our own home even though it is mortgaged :) Commercial Property vs Residential Property dilemma arises when you start searching for 2nd Property. This itch starts immediately after 1st Home Loan Closure or if you have surplus funds for investment. Lets try to solve this puzzle of Commercial Property vs Residential Property. 1. ... Read More
Self Welfare or Resident Welfare Association
Today one of my friend told me that he is planning to contest election for his apartment Resident Welfare Association. He aspire to become President of Resident Welfare Association. Objective is Self Welfare instead of Residents Welfare. Quite interestingly, this particular plan is my friend's retirement plan (Regular Source of Income). In last 12 years, i have stayed in 7 apartments in 2 different cities & it's quite unfortunate to conclude that Resident Welfare Association has become Gold Mine for Corruption. Corruption is more prevalent in bigger apartment complex. Reason being, In ... Read More
Impact of Budget on Real Estate
The Budget 2013 is very disappointing for real estate sector. There will be negative impact of budget on real estate. Though Real Estate is in bad shape as of now and was expecting much more from Budget 2013 but there is no effort from FM to revive and boost the sector. I am listing down impact of Budget on Real Estate sector. 1. TDS @ 1% on all Property transactions above 50 Lacs: This proposal was made in last year's budget also but later rolled back due to strong opposition. The objective behind this proposal is to stop circulation of black money in property transactions. Half of the ... Read More