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Showing posts from October, 2023

Tenancy in Common (TIC) in Indian Real Estate:

Tenancy in Common (TIC) in Indian Real Estate: Tenancy in Common (TIC) is a legal arrangement in which two or more parties jointly own a piece of real property, such as a building or a parcel of land. This structure allows each party to hold a distinct share of the property, adding flexibility and shared responsibility to property ownership. A significant feature of a TIC is that any party can sell their share of the property independently and also reserve the right to pass on their share to their heirs, making it an attractive option for estate planning. Prevalence of Tenancy in Common in India: TIC arrangements are most prevalent in urban areas of India, especially in bustling cities like Mumbai, Delhi, Bengaluru, and Chennai. In these densely populated regions, where real estate prices can be prohibitive, TIC enables multiple investors to co-own properties, which makes it easier to enter the property market together. This arrangement is commonly utilized in residential complexes and...
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What is the difference in Carpet, Built-up and Super Built-up area in India?

                        T he difference in Carpet, Built-up and Super Built-up area in India?   Disclaimer : Keep in mind that these percentages are rough estimates, and the actual proportions can vary based on the specific design and layout of a property. It's crucial to review the property's floor plan and documentation to understand the precise distribution of these areas before making any real estate transactions. It is also adviseable to check the Circle Rate vide a Government Recognised department and take into consideration actual sqft mentioned by them in their calculations. 1. Carpet Area: This refers to the actual usable area within the walls of the apartment or property. It does not include the thickness of the walls or common areas. Carpet area is the space where you can place a carpet and use for your personal use. 2. Built-up Area: This includes the carpet area as well as the thickness of the walls ...
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What is Index 2 in Sale Deed in Real Estate in India?

  What is Index 2 in Sale Deed in Real Estate in India?  Index 2 is a legal certificate that records every property detail, including registration, owner details, location, area, and more along with the necessary documents submitted at the sub-registrar's office. Disclaimer: Please get in touch with a Real Estate lawyer before applying any information from any of our Social Media Platforms.
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Should the tenant also receive a copy of Notarized Rental Agreement ?

  Should the tenant also receive a copy of Notarized Rental Agreement ? Yes, in most cases, the tenant should receive a copy of the notarized rental agreement. The rental agreement is a legally binding document that outlines the terms and conditions of the lease between the landlord and the tenant. Both parties typically retain a copy of the notarized agreement for their records. This copy serves as proof of the agreed-upon terms and can be helpful in case any disputes or clarifications are needed during the tenancy. It's a good practice to ensure both parties have a copy of the signed and notarized rental agreement. Disclaimer: Please take advise of a Real Estate Lawyer before taking any decisions.
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Does Seller also get a copy of the Registered Sales Deed in India?

  Does Seller also get a copy of the Registered Sales Deed in India? In India, it is customary for the seller to receive a copy of the registered sales deed. This deed, also known as the sale deed or conveyance deed, is a legally binding document that transfers the ownership of the property from the seller to the buyer. Both parties, the seller, and the buyer, typically retain a copy of the registered sales deed for their records as it serves as proof of the property transaction.  However, it's always advisable to consult with a legal professional or real estate expert in your specific location in India, as real estate practices and documentation requirements can vary by state and locality.
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What is indexation in Real Estate in India?

  What is indexation in Real Estate in INDIA? Indexation in real estate in India is a method used to adjust the purchase price of a property for inflation. It helps in calculating the capital gains tax when you sell the property. The cost of acquisition is adjusted for inflation using the Cost Inflation Index (CII) published by the government. This adjustment reduces the taxable capital gains, which means you'll pay less in taxes when you sell the property. It's important to keep records of the property's purchase price and indexation values to calculate the correct capital gains tax when selling real estate.
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How to take an appointment for Registration of a property in India?

  How to take an appointment for Registration of a property in India? To take an appointment for the registration of property in India, you'll need to follow these general steps:   1. **Visit the Local Sub-Registrar Office**: Find the nearest Sub-Registrar Office in your area. You can usually find this information online or ask locally.   2. **Prepare Required Documents**: Gather all the necessary documents, which typically include the sale deed, property title documents, identity proofs, and photographs.   3. **Stamp Duty Payment**: Pay the appropriate stamp duty for the property transaction. The amount of stamp duty varies depending on the property's value and location.   4. **Online Appointment**: In many states, you can now book an appointment for property registration online through the respective state government's official portal. For example, you can check Directorate of Registration and Stamp Revenue plus name of the State. 5. **Fill Out the Registratio...
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How to get police verification done for tenants and owners when renting out a property in India?

  How to get police verification done for tenants and owners when renting out a property in India? To get a police verification done for tenants and owners when renting out a property in India, follow these steps:   1. **Visit the Local Police Station:** Contact your local police station and inquire about the process for tenant and owner verification. Different states or cities may have slightly different procedures, so it's important to get the correct information from the local authorities.   2. **Documentation:** You and your tenants (both owners and tenants) will need to provide certain documents, including:    - Aadhar card or passport    - Proof of residence    - Tenant agreement or lease documents    - Passport-sized photographs    - Any other documents required by the local police   3. **Application Form:** Typically, the local police station will provide an application form for verification. Fill out the form...
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For how many months should a Landlord rent out his place to Tenant for safety in India in Residential and Commercial Property

For how many months should a Landlord rent out his place to Tenant for safety in India in Residential and Commercial Property: In India, the ideal rental duration for residential and Commercial properties can vary based on different factors. Here are some general guidelines:   Residential Property: 1. Residential leases are often for 11 months, as this period does not require registration and offers flexibility for both landlords and tenants. 2. For longer-term stability and security, landlords and tenants may choose to enter into multi-year leases (e.g., 2, 3, or 5 years), but these typically require registration.   Commercial Property: 1. Commercial leases are generally longer in duration, often spanning 3 to 5 years or even longer, depending on the type of business and the landlord-tenant agreement. 2. Shorter-term leases (e.g., 1 year) are also possible for businesses with more uncertain future plans.   Safety in both cases can be ensured by having...
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What are the documents a Seller need to carry for Registration of his property in Buyer's name

   What are the documents a Seller need to carry for Registration of his property in Buyer's name: The documents required for the registration of a property in the buyer's name in India typically include:   1. Sale Deed: This is the primary document that transfers ownership from the seller to the buyer.   2. Encumbrance Certificate: This document verifies that the property is free from any monetary or legal liabilities.   3. Property Tax Receipts: The seller should provide property tax receipts to show that all property taxes are paid up to date.   4. Khata Certificate: This is a document that establishes the legal ownership of the property and is necessary for property registration.   5. Title Deeds: These are documents that prove the seller's legal right to the property.   6. No Objection Certificate (NOC): If the property is being sold by a cooperative society or builder, a NOC from them may be required.   7. Id...
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How should I recover my property documents if they are misplaced or lost in India

  How should I recover my property documents if they are misplaced or lost in India General guidance on recovering misplaced or lost property documents in India, but please consult with a local legal expert for specific advice tailored to your situation:   1. Lodge a Police Complaint: File a First Information Report (FIR) at the local police station reporting the loss or theft of your property documents. This is an important step to establish a record of the incident.   2. Notify Relevant Authorities: Inform the relevant government authorities, such as the municipal office or land revenue department, about the loss of your property documents. They may have procedures in place to help you obtain duplicates.   3. Contact the Issuing Authority: If your property documents were issued by a specific government department, like the land records office, contact them for guidance on how to obtain duplicates.   4. Verify Title and Ownership: Make sure you have all the nec...
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How to select a Rental Property in India

  How to select a Rental Property in India Selecting the right rental property in India requires careful consideration to ensure that it meets your needs and preferences. Here are some key points to keep in mind when choosing a rental property:   1. Budget: Determine your monthly rental budget and stick to it. Consider not only the rent but also additional expenses like maintenance charges, utilities, and security deposit.   2. Location: Choose a location that aligns with your lifestyle and daily needs. Consider factors such as proximity to work, schools, public transportation, healthcare facilities, and markets.   3. Property Type: Decide whether you want to rent an apartment, house, villa, studio, or a commercial space based on your requirements and family size.   4. Amenities and Facilities: Check the availability of amenities such as parking, security, water supply, power backup, and recreational spaces. Ensure they align with your needs.   5. Condition...
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How to Select a Land for Purchase in India

How to Select a Land for Purchase in India Selecting land for purchase in India involves several considerations. Here are some key factors to keep in mind:   1. Location: Choose a location that suits your needs and preferences. Consider factors like proximity to schools, workplaces, healthcare facilities, and transportation options. Also, research the future development plans and infrastructure in the area.   2. Budget: Determine your budget and stick to it. Factor in not just the cost of the land but also additional expenses like registration fees, legal charges, and potential development costs.   3. Land Use: Understand the land's designated use as per local zoning laws. Ensure it aligns with your intended use, whether it's for residential, commercial, agricultural, or other purposes.   4. Legal Verification: Verify the land's ownership and title deeds to ensure there are no disputes or encumbrances. Seek legal assistance to conduct a thorough due diligence process...
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How to Select a Flat in a Metropolitan City

THE MOST IMPORTANT THINGS TO KNOW IN SELECTING A FLAT IN A METROPOLITAN CITY Selecting a flat in a metropolitan city is a significant decision, and there are several important factors a buyer should consider to make an informed choice:   1. **Budget**: Determine your budget and stick to it. Consider not only the flat's purchase price but also ongoing expenses like maintenance fees, property taxes, and utility costs.   2. **Location**: Research the neighborhood extensively. Consider factors like proximity to work, schools, healthcare facilities, public transportation, markets, and recreational areas.   3. **Amenities**: Evaluate the amenities offered by the housing complex, such as security, parking, gym, swimming pool, and clubhouse. Decide which amenities are essential for your lifestyle.   4. **Builder's Reputation**: Research the builder or developer's track record. Check their past projects, quality of construction, and reputation for timely deliv...
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How do we check ownership of a Property in India

  HOW DO WE CHECK OWNERSHIP OF A PROPERTY IN INDIA  In India, you can search for property ownership information through the land records available in various state-specific land revenue departments. The process may vary slightly from state to state, but here are the general steps to search for property ownership:   1. **Identify the Location**: Determine the district and locality where the property is located. Property records are maintained at the local level.   2. **Visit the Local Revenue Office**: Go to the local Tehsildar's office or the Revenue Department office in the area where the property is situated.   3. **Request Property Records**: You can request property records by providing details such as the property's survey number, village or town name, or the property owner's name.   4. **Access Land Records**: In many states, land records have been digitized, and you can access them online through the respective state's land records we...
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When should the brokerage be paid on Sale or Rent of a Property

WHEN SHOULD THE BROKERAGE BE PAID ON SALE OR RENT OF A PROPERTY  In India, the payment of brokerage fees for the sale or rent of a property is typically governed by agreements between the parties involved. However, there are some common practices to keep in mind:   1. **Sale of Property**:    - Brokerage fees for property sales are typically paid by the seller.    - The fees are usually paid at the time of the property's sale closing when the ownership is officially transferred to the buyer.    - The brokerage fee is typically a percentage of the property's final sale price, which is negotiated between the seller and the real estate agent or brokerage.     -You may also collect brokerage when the Sale Deed is signed or at the time when the Buyer takes possession of the property.   2. **Rental of Property**:    - For property rentals, it's common for both the landlord and the tenant to pay brokerage fees to ...
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Brokerage percentages for Sale & Rent of property in India

  BROKERAGE FOR SALE OR RENT OF PROPERTY IN INDIA The brokerage percentages for the sale and rent of property in India can vary based on several factors, including location, property type, and the specific agreements between parties. While there are no fixed or standardized rates, We can provide you with a general range of what you might encounter:   1. **Property Sale**:    - Real estate brokerage fees typically range from 1% to 2% of the property's sale price for residential property sales.1% above 1 Crore INR and 2% below 1 crore INR.    - For commercial property sales, the brokerage fee can vary more widely, often falling between 1% and 5% of the property's sale price, depending on the complexity of the transaction and the property's value.     - In certain states, You can verify with Real Estate Agents it would be 1% for overall in general.     -In First Sales, You can get even more from Builders.   2. **Property Re...
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MAXIMUM TIME GIVEN TO CLOSE A PROPERTY PURCHASE TO THE BUYER

MAXIMUM TIME IN WHICH A PROPERTY DEAL SHOULD BE CLOSED  In India, there isn't a fixed maximum time given to a buyer to close a purchase of a property. The time it takes to complete a property purchase can vary depending on various factors, including the complexity of the transaction, legal requirements, financing arrangements, and negotiations between the buyer and seller. However, here are some general guidelines:   1. **Negotiation Period:** The negotiation period, where the buyer and seller agree on the terms and conditions of the sale, can vary widely. It may take days or several weeks, depending on the parties' willingness to reach an agreement.   2. **Due Diligence:** Conducting due diligence, including verifying property documents, titles, and legal clearances, is a crucial step. This process can take several weeks to ensure all aspects of the property are in order.   3. **Financing:** If the buyer is obtaining a home loan, the approval process by ...
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How much should be the Token Money and advance in Sale of a Property

TOKEN MONEY AND ADVANCE PAYMENT IN PROPERTY SALES  The amount of token money and advance payment in the sale of a property in India can vary based on negotiations between the buyer and seller, as well as local market practices. There are no fixed or legally mandated amounts for these payments. However, here's a general guideline:   1. **Token Money:** Token money is a small amount paid by the buyer to the seller as a gesture of seriousness and intent to purchase the property. It is usually a nominal sum, such as Rs. 10,000 to Rs. 50,000 or even higher 2% to max 5% depending on the value of the property and the local market norms. The purpose of token money is to hold the property off the market temporarily while the parties negotiate and finalize the sale agreement.   2. **Advance Payment:** After the token money is paid, buyers typically pay an advance amount, which is a more substantial portion of the total property price. This advance can vary widely but is oft...
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What should be the Payment structure when renting a property in India

  Payment structure when renting a property in India When renting a property in India, the payment structure typically involves several components and steps that should be agreed upon and documented in a rental agreement. Here's a common payment structure for renting a property in India:   1. **Security Deposit:** The tenant usually pays a security deposit to the landlord before moving in. This amount is refundable at the end of the lease term, provided there is no damage to the property and all dues are settled. The security deposit is typically equivalent to one to three months' rent, but this can vary.   2. **Advance Rent:** The tenant often pays advance rent for the first month or more before moving in. This advance rent is adjusted against the monthly rent during the tenancy.   3. **Monthly Rent:** The tenant pays monthly rent on or before a specified date each month. The amount and due date are clearly mentioned in the rental agreement.   4...
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What should be the Payment structure when selling a property in India

  What should be the Payment structure when selling a property in India When selling a property in India, the payment structure typically involves various components and steps. Here is a common payment structure to consider:   1. **Token Amount:** Initially, the buyer usually pays a token amount to the seller to express their intent to purchase the property. This amount is a sign of goodwill and is often negotiable. It's not a substantial part of the total property price but demonstrates the buyer's seriousness.   2. **Advance Payment:** After the token amount, the buyer may provide an advance payment, which is typically a certain percentage of the total property price. This is usually paid within a specific timeframe, as agreed upon in the sale agreement.   3. **Sale Agreement:** Once the token amount and advance payment are made, both parties enter into a sale agreement. This agreement outlines the terms and conditions of the sale, including the final sale price, t...
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Documents to be checked when Renting a property In India

 Documents to be checked when Renting a property In India  When renting a property in India, tenants/landlords should carefully review and collect several important documents to ensure a smooth and legally sound transaction. Here are some key documents to consider:   1. **Rental Agreement:** This is the most crucial document. It outlines the terms and conditions of the rental, including rent amount, security deposit, maintenance charges, and the duration of the lease.   2. **Owner's Identity Proof:** Collect a copy of the property owner's Aadhaar card, passport, or any other government-issued identity document.   3. **Property Ownership Proof:** Ensure that the landlord provides documents proving their ownership of the property, such as the property title deed.   4. **Occupancy Certificate:** In the case of an apartment complex or a newly constructed building, ask for the occupancy certificate issued by the local municipal authority. ...
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Documents to be checked and collected by the Buyer while purchasing a property in India

What are the important documents that need to be verified before buying a property in India :  When purchasing a property in India, buyers should undertake a thorough due diligence process to ensure a smooth and legal transaction. Here is a list of documents that buyers should check and collect:   1. Title Deed: Verify the seller's ownership of the property through the title deed. Ensure it is clear and free from encumbrances.   2. Sale Deed: This legal document transfers ownership from the seller to the buyer. Ensure it is properly executed and registered.   3. Encumbrance Certificate: This certificate confirms that the property is free from any legal dues or mortgages. Check for any encumbrances over the past 15-30 years.   4. Property Tax Receipts: Ensure the seller has paid all property taxes up to date. Request copies of receipts as proof.   5. Khata Certificate and Extract: These documents establish the property's ownership and pro...
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Most important things to keep in mind when renting a property in India

  Important things to keep in mind when renting a property in India When renting a property in India, the most important things to keep in mind include:   1. **Legal Documentation**: Ensure all rental agreements are legally drafted and signed by both parties. It should include terms of rent, security deposit, and other conditions.   2. **Verification**: Verify the property owner's identity and ownership of the property. Also, make sure the property has all the necessary approvals and clearances.   3. **Rent Agreement**: Clearly understand the terms of the rent agreement, including rent amount, maintenance charges, and duration of the lease.   4. **Security Deposit**: Discuss and document the amount of the security deposit and the conditions under which it will be refunded when you vacate the property.   5. **Maintenance Charges**: Clarify who is responsible for maintenance and any associated costs.   6. **Tenant's Rights**: Fami...
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Most important things to keep in mind when selling a property in India

  Most important things to keep in mind when selling a property in India Selling a property in India involves several important considerations. Here are some key things to keep in mind:   1. Property Valuation: Determine the fair market value of your property through a professional appraisal or by researching recent sales of similar properties in your area.   2. Documentation: Ensure all property documents are in order, including the title deed, property tax receipts, and any necessary approvals or clearances from local authorities.   3. Ownership Verification: Verify the legal ownership of the property and resolve any title disputes or discrepancies, if applicable.   4. Due Diligence: Conduct a due diligence check on the buyer to ensure they have the financial capacity to make the purchase.   5. Property Condition: Make necessary repairs and improvements to enhance the property's appeal to potential buyers.   6. Marketing and P...
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