Should i buy a discounted property?. Recently i received this query from one of my clients. He further added that discounted property is available at a price 40% lower than current market rate. Firstly, i would like to appreciate the alertness of the buyer. He is an investor and has substantial exposure to real estate. Therefore, he smells something fishy. From a retail buyer perspective, the Discounted Property offer is tempting enough to close the deal. Just to clarify that in this post, by Discounted Property i mean a property available at a discount of 15% or more than current market ... 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
Register Under Construction Property for Home Loan
"Register Under Construction Property to avail Home Loan," a Bank Employee told to one of my clients. My client got confused. She was under a notion that under construction property can only be registered at the time of possession. Off late, banks are insisting borrowers to Register Under Construction Property before possession if you are availing a Home Loan. Though it is mandatory to Register Under Construction Property under subvention schemes, it is at the discretion of the bank. From a buyer's perspective, it's a mixed bag. Depending on case to case basis, to Register Under Construction ... Read More
Possession of Property – 7 Points to Check
The happiest moment during property purchase is when a buyer receives a letter from builder to receive possession of property. A buyer is so enthusiastic that he receives possession of property without going through the basic checklist. These days due to the slowdown in the real estate market, almost all the projects are getting delayed. I highlighted the reasons for delay in my post, Why under construction projects gets delayed?. A buyer is so frustrated over a delay that he accepts possession of property on as is where is basis and what is there is basis. This approach may land a buyer in ... Read More
Builder NOC – 11 Important Points to Check
Builder NOC is one of the must crucial document for direct transfer of under construction property. Normally, Builder NOC is a standard format by a builder. As i keep highlighting that there is no concept of standard format except for legal and govt issued forms/documents. As i promised in my previous post, Direct Transfer of Under Construction Property to dedicate a post on Builder NOC. This NOC is also referred as a Resale NOC. As i explained in my previous post that buyers should prefer tri-party agreement instead of bi-party agreement with the seller based on builder NOC. If the situation ... Read More
Direct Transfer of Under Construction Property
Transfer of Under Construction Property is one of the most complex topics in real estate. It is situational and there are no right or wrong answers. Transfer of Under Construction Property depends on multiple factors like Construction Status, Home Loan of a Seller, Builder or Landowner share etc. The buyer is in a dilemma on how to make payment and what is the right procedure to execute the deal. The situation is complex if the occupancy or completion certificate is issued, but the property is yet to be registered. Another confusion is who will bear the cost of VAT and Service Tax i.e. buyer ... Read More