Home Buying Guide

BUYER’SGuide

BUYER’S

INDEXTO BUY OR NOT?

• Owning Vs Renting? • Investing in Real estate? Dos & Don’ts

HOME BUYING PROCESS

• How to start? • Everything first time home buyers need to know• Things to consider before investing in a plot• All about building approvals• Check your payment plan• Final property purchase checklist• Choose the right location• Technology that helps with property search• Seek expert assistance

THE LOAN PROCESS

• Pre-approved loans• Documents required• Pre-Payment of loan• EMI• Home Loan Insurance

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NEGOTIATING & CLOSING THE DEAL

POST PURCHASE

• Legal Assistance & registry and documentation• Purchasing land from NRI Owner

RETURN ON INVESTMENT& WHEN TO EXIT

• How to make the most of your investment?• What is the right time to exit?

GUIDELINES FOR NRIsSELLING PROPERTY IN INDIA

VAASTU & FENG SHUI

• Guidelines to ensure your property is vaastu compliant• Doing up your homes with Feng Shui

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21 GLOSSARY

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1. OWNING VS. RENTING

Reasons For Renting

A question that plagues every potential first time home buyer’s mind is this - Should I just stay in a rented accommodation or should I take the plunge

and buy a property? There are advantages and disadvantages attached to both these property decisions. One must take certain factors into

consideration before making this crucial commitment as it will have a bearing on your overall financial well-being.

FlexibilityRenting a property gives a level of flexibility that owning a property cannot. If you are thinking about switching jobs and moving to a new city then

obviously purchasing a property is not something you should consider. The same applies if you don’t have a stable job. Buying a property ties you

down to a specific location. While renting a property you can choose one which is close to work and within city limits.

Low rental ratesRental rates are low in India. Typically they amount to only 3 to 4% of the value of the property. One can save a huge chunk of money and if this

is invested wisely one can reap great benefits. If one is to think about purchasing property through home loans, a down payment which equals to

20% of the value of the property has to be made. And this is only if your credit rating is good. If it isn’t, then the bank might ask you to pay more.

Then come the payments that need to go towards the registration process which would include stamp duty, registration fee etc. You would need to

deal with the EMIs (Equated Monthly Instalment) as well. Interest rates on loans tend to fluctuate and you might have to shell out more money down

the line. This is not to say that rental rates don’t tend to fluctuate because of inflation. But if you don’t have the kind of money that is required for

purchasing a property then renting might be the way to go.

No maintenance costsMaintaining homes is an expensive affair and can eat up your savings. If you rent a property you don’t have to worry about maintaining it as the

responsibility falls on the landlord to fix any problems that may arise.

Reason For BuyingAssetOwning a property is one of the biggest investments a person can make

in his/her lifetime. Properties tend to witness capital appreciation over

time and are hence considered to be one of the top investment choices

alongside gold and mutual funds.

StabilityHaving a roof over your head tends to give you certain stability. You don’t

have to deal with pesky landlords and their whims and fancies. When you

know that you are going to lay down your roots in a particular city, owning

a home there makes more sense.

Tax deductionsIf you have taken a home loan on a property you are going to live in, the

principal amount repaid up to 1.5 lakh qualifies for deduction under

Section 80C; while up to 2 lakhs of interest paid is tax-deductible under

Section 24.

Control over propertyYou have creative control over the property you own, which is not possible

with a rented property. If you want to carry out even the tiniest

modification to your rented accommodation you will have to get the go

ahead from the landlord. That is not the case when you own a home.

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TO BUY OR NOT

1. OWNING VS. RENTING

Reasons For Renting

A question that plagues every potential first time home buyer’s mind is this - Should I just stay in a rented accommodation or should I take the plunge

and buy a property? There are advantages and disadvantages attached to both these property decisions. One must take certain factors into

consideration before making this crucial commitment as it will have a bearing on your overall financial well-being.

FlexibilityRenting a property gives a level of flexibility that owning a property cannot. If you are thinking about switching jobs and moving to a new city then

obviously purchasing a property is not something you should consider. The same applies if you don’t have a stable job. Buying a property ties you

down to a specific location. While renting a property you can choose one which is close to work and within city limits.

Low rental ratesRental rates are low in India. Typically they amount to only 3 to 4% of the value of the property. One can save a huge chunk of money and if this

is invested wisely one can reap great benefits. If one is to think about purchasing property through home loans, a down payment which equals to

20% of the value of the property has to be made. And this is only if your credit rating is good. If it isn’t, then the bank might ask you to pay more.

Then come the payments that need to go towards the registration process which would include stamp duty, registration fee etc. You would need to

deal with the EMIs (Equated Monthly Instalment) as well. Interest rates on loans tend to fluctuate and you might have to shell out more money down

the line. This is not to say that rental rates don’t tend to fluctuate because of inflation. But if you don’t have the kind of money that is required for

purchasing a property then renting might be the way to go.

No maintenance costsMaintaining homes is an expensive affair and can eat up your savings. If you rent a property you don’t have to worry about maintaining it as the

responsibility falls on the landlord to fix any problems that may arise.

Reason For Buying

Investing in real estate can be a very tricky proposition. In most instances people tend to put in all their savings, plus take loans to purchase a property. This being

the case, one has to exercise extreme caution at all stages of the purchase, to ensure that the money one sinks into real estate does not go to waste.

It is best not to invest in far flung locales which lack even basic amenities such as roads, water supply and drainage system. Do not get swayed by promises of upcoming

infrastructural projects and invest your money. Infrastructural projects take time to kick off and it is best not to pin too much hope when you are yet to see proof.

IndiaProperty realizes the crucial part these factors play when it comes to making property choices. The site provides expert analysis of localities based on these factors through

micro market reports and its locality pages.

Checking credentials of the builderThe real estate industry is littered with builders who are upstarts and are unreliable. If you come across an offer that is too good to be true from a small time builder, it is best

not to funnel your hard earned money into that project. The best way to go about checking the credibility of builders is to look at their past projects. This will give you a clear

idea about how a particular builder works and if you can trust him with your money.

Legal documentsTitle deeds are the key to any property transaction. If the seller does not have a clear title deed, then do not purchase the property

• Absence of a clear and marketable title deed is a deal breaker as it will lead to legal hassles in the future

• Insist on seeing the original title deed and have it verified by your attorney before buying the property

• Ensure that all clearances related to the property are in place before you acquire the property

• If you are looking to purchase an under-construction property, get the builder to handover the allotment letter and the development agreement

• The allotment letter has details such as the price of the property, floor plan, delivery date of the project and details of the liability incurred

by the builder if there is a delay in delivering the project

• The development agreement lists out the terms and conditions under which the landowner has allowed the builder to use his property

• Ensure that all the taxes related to the property you are about to purchase have been cleared before you actually buy the asset

• Whenever in doubt, it is always advisable to take expert assistance

Delay in deliveryWhen you decide to purchase an under-construction property, chances are that the project may be delayed. A delay of 6 months is acceptable but anything that goes beyond

a year or more is bad news for you. Picking projects which are in the pre-launch stage are considered to be very risky. To mitigate such risks, check the delivery track record

of the developer and look out for projects which are in the under-construction or ready to occupy stage.

2. INVESTING IN REAL ESTATE? DO’S AND DON'TS

BudgetBefore taking the plunge and buying the property you have your eyes on, it is essential

to get your finances in order. Set yourself a budget and try not to stray far away from

it. Remember not to spend money that you cannot afford to spend in the first place.

You should ensure that the EMI going out of your pocket is not more than 40% of your

monthly income.

ResearchNow that you have gotten your finances in order, it is important for you to do your

homework. You will know your requirements, so work with localities which are a

match for those requirements. Some of the basic criterias one should keep in mind

while researching are:

•Location

•Access

•Existing and proposed infrastructure projects

•Connectivity

•Presence of social infrastructure

•Safety

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HOME BUYING PROCESS1. HOW TO START?Starting your property search is always a tough task. You might come across a number of unfamiliar circumstances and situations. It can be an

intimidating process, especially when there are so many legal and technical jargons that are thrown at you. Be prepared to handle any legalities

that come your way. Have this guide handy for any property search queries and requirements.

Types of property ownership:In India, two types of property ownership rights exist- freehold and leasehold.

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2. EVERYTHING FIRST TIME HOME BUYERS NEED TO KNOW

In India the profile, age and socio-economic status of the first-time home owner is gradually changing. Planning to buy a home starts very early on.

However, what remains unchanged is the hesitation and trepidation that comes with making such a major decision. First-time home buyers in India need a lot of caution

and due diligence before signing on the dotted lines of a home buyer’s agreement. The following tips are intended to guide first time home buyers as they finalise one

of the most crucial investments.

Financial planningIt is essential to ensure proper financial planning before you make the decision to invest in a property. The first step would be to review your current financial obligations

such as student loans, life insurance or any other commitments to get an essence of your true monthly income. Your budget for buying your home should be based on

your household budget and how much money you can afford to put aside for the EMI of a home loan. Besides the EMI you should have a healthy savings account that

can pay for the additional incidentals such as stamp duty, registration, car parking, club house charges and other sundry charges by the builder. An important advice

by financial experts is to set aside 4 to 5 EMIs as reserve funds for unforeseen circumstances such as loss of employment or any situation that exerts pressure on financial

resources available at your disposal.

Assess your future needs and goalsWhen deciding to invest in a property, it’s important to not only have a clear picture of your present needs but also take into account your future needs and goals.

Some of us are just looking for a home for our family, some of us want capital appreciation through a long term investment. Some just want to be part of a new upcoming

complex or some want to move closer to their workplace. When we invest we should be clear about our goals to ensure we make an informed choice.

For e.g. if you are planning on raising a family, investing in a bigger house, with good schools and parks in the vicinity would be an important consideration.

Learn about different interest rate optionsA common dilemma for the first-time home investor is choosing between a fixed rate of interest and a floating rate of interest. A consumer has to choose between peace of

mind by opting for fixed home loan where the interest rate remains constant during the entire loan tenure and does not change with market fluctuation or should they take a

risk by going for floating loans. In this scenario the interest rate is dependent on the market and fluctuates according to the economic situation in the country.

A new option that is growing in popularity is the fixed-floating home loans that come with a fixed interest rate in the initial years and floating rates thereafter. This option gives

customers stability on their EMI outflows for the first few years, thus helping them plan finances better and provides protection against future fluctuations in interest rates.

Experts believe that given a choice,

a buyer should prefer freehold property

over leasehold as the title is absolute and

clear. Additionally, freehold properties

are more stable and are likely to increase

in value in the longer term. Also a

freehold property has better marketability

and can be sold, mortgaged or kept for

standing security, which cannot be done

with leasehold property.

A freehold property ownership is the most common

form of property ownership in India. It essentially means that the buyer has complete legal ownership rights over the property. He can stay,

sell or transfer the ownership to another party.

Freehold property

Leasehold properties cannot be transferred

easily like freehold properties. They always require a Power of Attorney for conducting transactions, which ceases to

exist with the death of the owner or the seller.

Transfer of property

If your property requirement is short

term or only for a few years, you can easily get access to a property by

way of negotiating a lease.

Short term investment

In a leasehold form of

property ownership, you just own the building and not the land. This ownership is for a stipulated period of time ranging up to 99 years. Once the set period in the

lease expires, the property reverts to the original

owner.

Leasehold Property

If you are delaying your

decision to buy a property just because the price is too high,

but you are ready to sacrifice your absolute ownership, you can easily get access to the property by

way of negotiating lease.

Financial limitations

A freehold property gives the complete legal

ownership of the property to the buyer, whereas in a

leasehold property ownership, the buyer is not an owner but

only a lessee, with limited rights.

Absolute ownership

A freehold property makes for a better

investment choice as there is no uncertainty about the future of the property. This ensures

better marketability of the property. It can also be sold

or mortgaged in a financial crisis.

Investment choice

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Experts believe that given a choice,

a buyer should prefer freehold property

over leasehold as the title is absolute and

clear. Additionally, freehold properties

are more stable and are likely to increase

in value in the longer term. Also a

freehold property has better marketability

and can be sold, mortgaged or kept for

standing security, which cannot be done

with leasehold property.

Improve your CIBIL scoreCIBIL is India’s first credit information company, also commonly referred to

as a Credit Bureau. The CIBIL TransUnion Score plays a critical role in the

loan application process. After an applicant fills out the home loan

application form and hands it over to the lender, the credit score and

credit report of the applicant is immediately checked. If the credit score is

low, the lender may not even consider the application further and reject it.

However if the applicant has a good credit score, he is considered

credit-worthy and this improves the chances of the loan being approved.

A high CIBIL score also can make the loan available at a cheaper

interest rate.

Go loan shoppingShopping around for a home loan will give you a great market insight

and help you select the best suited financing option. Comparing loans

and negotiating with banks can save you a lot of money. Once you know

what each bank has to offer in terms of rates and fees, negotiate for the

best deal. These days, banks also offer home loan insurance as a bundled

product along with your home loan that protects your family from loan

liabilities in case of your unfortunate demise within the policy term.

When selecting for a lender, it is also advisable to check the prepayment

penalty and foreclosure charges. You can also consider co-ownership

between two family members to get a bigger loan amount.

Get a pre-approved loanA pre-approved home loan means that the bank or financial institution has

carried out their due diligence checks on your credit report and have made

a virtual confirmation of the loan and the loan amount. This pre-approved

home loan boosts the confidence level of the purchaser and gives him

a clear idea of the budget within which he will be able to buy a house.

The buyer will also have clarity in terms of EMIs that will need to be paid and

can accordingly plan their finances. However the buyer must be aware that

once he gets the pre-approval for a loan, he has only a limited time-frame

within which to finalise the property, failing which the pre-approval can be

cancelled.

Research locationsLocation is another key factor to consider before making an investment.

It is always prudent to buy in a high-growth area where there is potential

for growth and subsequent capital gains. Keep things like connectivity to

business areas, proximity to educational institutions, malls, hospitals and

other important social infrastructure in mind. It is also important to be

aware of future planned developments in the area that could have

a positive or detrimental effect on the future value of the property. At the

same time, the location should be suited to your personal requirements

and budget. A healthy mix of the above two considerations will guide you

towards your ideal location.

Credibility of the builderBefore purchasing a property one should look into the credibility of the

builder. This essentially means checking on the developers past projects,

their previous projects, quality of construction, rate of appreciation in

value, current demand in the market and number of future projects that are

being undertaken. It is also an added advantage if the developer is

affiliated with a governing body like CREDAI.

Understand your payment planFor a new property it is also advisable to check with the builder on

a construction-linked payment plan or a time-linked payment plan and the

cash versus cheque component. This will have an effect on your cash flow

and other aspects of your personal finance.

A. Construction linked payment planUnder this plan you are paying an initial booking amount

upfront while the rest is linked to construction milestones, say 10% with

each floor constructed.

B. Time linked payment planYou pay according to a set timetable, whether the construction is on time or

not. Under this plan you are contractually bound to pay your instalments,

even though the property has been delayed.

However, the RBI recently issued a circular asking banks to desist from

upfront disbursal of sanctioned housing loans to builders and instead link

housing loans to stages of construction of a project to protect the home

buyer and the lender from additional risks. This is primarily to protect

the home-buyers against endless delays in the construction of new projects.

Legal due diligence on the propertyOne must also check all the sanctions, plan approvals and agreements to

ensure that the builder has completed regulatory and legislative

obligations before investing in a property. Any deficiency on this front

can lead to serious consequences for the buyer.

Carpet, built-up and super built-up areaDuring purchase of a flat/property, there should be no ambiguity related

to carpet area, built-up area and super built-up area.

• The carpet area is the space available for flooring a carpet,

the built-up area is the carpet area including the wall,

balcony space and other areas.

• The super built up area is the built area plus the corridor,

parking space etc. It also includes the area for common use like lobby,

lifts, staircase and alley.

• This difference between the super-built up and carpet area is called

loading. When you are buying a property, it is important to ensure that

you are paying for the carpet area and not for the super built up area

that sometimes has a loading of nearly 30-40%.

NegotiateDo not hesitate to negotiate better rates. Sometimes builders might be

willing to offer promotional discounts during festive seasons or if their

sales are slow. Also when buying a new property in the initial stages of

construction, do enquire about special pre-launch and launch

offers and prices.

Allotment letterOnce you have selected a property and made the initial payment, you

will receive an allotment letter from the builder. This allotment letter

includes the details of the flat that has been allotted to you, such as the flat

number, area, price the payment details, any extra charges levied to you

on amenities such as car parking, club membership and maintenance

charges to be levied at time of occupancy.

If you have a preference for a certain floor or view, then you must request this

from the builder at the time of the initial application with the builder. Once the

allotment letter is given to you, your flexibility to change your unit might be limited.





















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Understand your payment planFor a new property it is also advisable to check with the builder on

a construction-linked payment plan or a time-linked payment plan and the

cash versus cheque component. This will have an effect on your cash flow

and other aspects of your personal finance.

A. Construction linked payment planUnder this plan you are paying an initial booking amount

upfront while the rest is linked to construction milestones, say 10% with

each floor constructed.

B. Time linked payment planYou pay according to a set timetable, whether the construction is on time or

not. Under this plan you are contractually bound to pay your instalments,

even though the property has been delayed.

However, the RBI recently issued a circular asking banks to desist from

upfront disbursal of sanctioned housing loans to builders and instead link

housing loans to stages of construction of a project to protect the home

buyer and the lender from additional risks. This is primarily to protect

the home-buyers against endless delays in the construction of new projects.

Legal due diligence on the propertyOne must also check all the sanctions, plan approvals and agreements to

ensure that the builder has completed regulatory and legislative

obligations before investing in a property. Any deficiency on this front

can lead to serious consequences for the buyer.

Carpet, built-up and super built-up areaDuring purchase of a flat/property, there should be no ambiguity related

to carpet area, built-up area and super built-up area.

• The carpet area is the space available for flooring a carpet,

the built-up area is the carpet area including the wall,

balcony space and other areas.

• The super built up area is the built area plus the corridor,

parking space etc. It also includes the area for common use like lobby,

lifts, staircase and alley.

• This difference between the super-built up and carpet area is called

loading. When you are buying a property, it is important to ensure that

you are paying for the carpet area and not for the super built up area

that sometimes has a loading of nearly 30-40%.

NegotiateDo not hesitate to negotiate better rates. Sometimes builders might be

willing to offer promotional discounts during festive seasons or if their

sales are slow. Also when buying a new property in the initial stages of

construction, do enquire about special pre-launch and launch

offers and prices.

Allotment letterOnce you have selected a property and made the initial payment, you

will receive an allotment letter from the builder. This allotment letter

includes the details of the flat that has been allotted to you, such as the flat

number, area, price the payment details, any extra charges levied to you

on amenities such as car parking, club membership and maintenance

charges to be levied at time of occupancy.

If you have a preference for a certain floor or view, then you must request this

from the builder at the time of the initial application with the builder. Once the

allotment letter is given to you, your flexibility to change your unit might be limited.

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Site visitsMaking regular site visits to your property when it is under construction is important so that you can check the status of construction and quality of materials used.

If you want to make minor non-structural changes such as the layout of the kitchen or change the plumbing fixtures, this would be the best time to get it done.

Sale deedA sale deed is one of the most valuable legal documents in purchase or sale of a property. It is governed by the Registration Act and is an important document for

both the buyer and the seller. The purchase or sale of property is not legally complete until a sale deed is signed between the buyer and the seller. Usually a sale

deed is signed only after both the parties are satisfied and comply with the terms and conditions in the agreement.

Verify all legal documentsThere are a lot of important legal documents without which the sale of a property is not complete. It is the duty of the buyers to verify all these documents and ensure that

they are duly signed. Some of these legal documents include - share certificate, sale agreement, society documents, sanction plans and encumbrance certificate.

Possession and registrationThe final step that will complete the purchasing process is possession and registration. Possession is the physical transfer of the property, but is not sufficient to

establish legal transfer of ownership. For this you will have to get the property registered in your name with the local authority, with the seller documenting that the

property is being transferred to you. At the time of registration you will also have to pay a stamp duty which is a government tax levied on property transactions.

Maintenance by the builderWhen the construction is complete the developer receives an Occupancy Certificate (O.C) by the local body that confirms the hand-over of the property to the buyer.

From the date of receiving this certificate to the next 18 months the developer is responsible for the maintenance of the building. This includes general cleaning,

security, payment of electricity charges for the common areas, property tax, running costs of generator sets and any repair or maintenance works.

Formation of the housing societyThe developer initiates the formation of a housing society. The builder normally creates a bank account in the name of the society and transfers the unspent money

on the project. The society elects it representatives and takes the responsibility of the maintenance of the building and collection of maintenance charges.

Property search routeNewspapers today are cluttered with property ads, realty brokers have offices in every site and there is no dearth of property information online. But with today’s

busy schedules, sieving through the market and gathering information can be a daunting task. Understanding this challenge, IndiaProperty.com has designed a

special tool to guide you as you navigate the property markets. Assisted Property is a unique service that assigns a dedicated property search manager to research,

review and shortlist properties suited to your requirements.





















To know morecall Assisted Property on3333 7777Not only will this service help you save valuable time in short listing properties,it will also book site visits for you, evaluate your selected property and help you source home loan and legal assistance if needed.

Site visitsMaking regular site visits to your property when it is under construction is important so that you can check the status of construction and quality of materials used.

If you want to make minor non-structural changes such as the layout of the kitchen or change the plumbing fixtures, this would be the best time to get it done.

Sale deedA sale deed is one of the most valuable legal documents in purchase or sale of a property. It is governed by the Registration Act and is an important document for

both the buyer and the seller. The purchase or sale of property is not legally complete until a sale deed is signed between the buyer and the seller. Usually a sale

deed is signed only after both the parties are satisfied and comply with the terms and conditions in the agreement.

Verify all legal documentsThere are a lot of important legal documents without which the sale of a property is not complete. It is the duty of the buyers to verify all these documents and ensure that

they are duly signed. Some of these legal documents include - share certificate, sale agreement, society documents, sanction plans and encumbrance certificate.

Possession and registrationThe final step that will complete the purchasing process is possession and registration. Possession is the physical transfer of the property, but is not sufficient to

establish legal transfer of ownership. For this you will have to get the property registered in your name with the local authority, with the seller documenting that the

property is being transferred to you. At the time of registration you will also have to pay a stamp duty which is a government tax levied on property transactions.

Maintenance by the builderWhen the construction is complete the developer receives an Occupancy Certificate (O.C) by the local body that confirms the hand-over of the property to the buyer.

From the date of receiving this certificate to the next 18 months the developer is responsible for the maintenance of the building. This includes general cleaning,

security, payment of electricity charges for the common areas, property tax, running costs of generator sets and any repair or maintenance works.

Formation of the housing societyThe developer initiates the formation of a housing society. The builder normally creates a bank account in the name of the society and transfers the unspent money

on the project. The society elects it representatives and takes the responsibility of the maintenance of the building and collection of maintenance charges.

Property search routeNewspapers today are cluttered with property ads, realty brokers have offices in every site and there is no dearth of property information online. But with today’s

busy schedules, sieving through the market and gathering information can be a daunting task. Understanding this challenge, IndiaProperty.com has designed a

special tool to guide you as you navigate the property markets. Assisted Property is a unique service that assigns a dedicated property search manager to research,

review and shortlist properties suited to your requirements. 3. THINGS TO CONSIDER BEFORE INVESTING IN A PLOT

Investing in plots has always been considered a lucrative financial option. While apartments and villas have been the most popular property

investment choices, there are many buyers who prefer investing in plots especially for the capital appreciation it offers. A plot that is bought in a

high growth neighbourhood or a new market, is attractive for all sectors - from residential to commercial. As the suburb nears its growth potential

and begins to saturate, plots increase in value and offer good value for the seller. Any new infrastructure development in a neighbourhood will also

drive prices upwards. However when buying a plot, it is important to understand the various factors that influence the price of plots.





















Floor Space Index (FSI)The floor space index or FSI gives an indication of how much built up space

can be constructed based on different parameters of setbacks, road widths

and ofcourse, the plot size. This is often determined by the local authorities

and has a direct effect on the price of the plot. The higher the FSI, the

greater is the space available for construction and hence higher the value.

Soil Type It is necessary to ascertain the soil type and ground water of a plot before

buying it. If the plot is unsuitable for deep digging, unstable or extremely

rocky, it would make the plot geologically unstable. This means the ground

would not be able to support any structure. The absence of sufficient

ground water would also be a major drawback, negatively effecting

the price of a plot. Before investing in a plot, it is essential to do

a basic site visit to understand the property with reference to the metrics

given above.

Location This is the most primary consideration when determining the price of the

property. The prevalent price trends will also be applicable to the plot.

In a high growth or a popular location with many new infrastructure

development, the prices will be higher than in an emerging neighbourhood.

ConnectivityAnother prime determinant of the price of a plot is the connectivity factor.

This is not only to the main roads and highways but also the other parts of

city through road and rail.

Civic Infrastructure The development of local civic infrastructure with amenities like water

supply, electricity, power, sanitation, drainage system, street lights and

mobile coverage make for a more appealing plot investment when

compared to buying land without any of these basic civic amenities.

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4. ALL ABOUT BUILDING APPROVALS

Getting the necessary approvals to construct is one of the toughest task when it

comes to buying a property. Before getting to the construction, you have to check

the land title to see if it is clear. If the title is not clear, the project might not take off

and the investor will land in trouble. Just remember that there are a number of

agencies is involved in the approval game and the investor will be in trouble even

if one approval has been withheld. Delays in project approvals translate into an

escalation of 35-40% in the construction costs. The customers can also benefit with

a saving of 15-25% merely by cutting down the delays in the approval processes.

Why do you need approval?

For multi-storied apartmentsIn case of a big residential projects, 40 different approvals are required from central

and state government agencies. Approvals are required from central and state

government agencies. Approvals are required for land conversion and land use as

well as for environmental clearance. These two categories take the most amount of

time to obtain. In the case of tall buildings in the vicinity, approval has to be obtained

from the Airport Authority of India, if the building is to developed near a heritage

building, then the approval has to come from the Archaeological Survey of India and

so on. Each agency will study the impact of the project and then approve it.

Approvals have to be obtained by the builder. Before you enter into an

agreement with the builder insist that he shows all the letters of approval from the

various government agencies. It is the best if you have a written agreement with

the developer. The agreement should clearly set out the following:

• Specification of the apartments.

• Terms and conditions

• Payment plans

• Date on which the builders will hand over the apartment

• Penalty clause if either party defaults

Ask if there are any hidden costs as otherwise you

may be in for rude surprise later on.

For plotsIf the land has been purchased though a government agency, such as the City &

Industrial Development Corporation (CIDCO) in Navi Mumbai or the Delhi

Development Authority (DDA) in Delhi, ask for the allotment letter.If the land is

acquired from a farmer, ask for the title deed which mentions his name and how

he came to inherit the property.

For resale propertiesIn case of an old house, the buyer must get the following:

• Vacant possession - it refers to a legal obligation to ensure that the property

is a state fit to be occupied at a given point of time.

• Encumbrance certificate (EC) - It is an evidence that the property

in question is free any monetary and legal liabilities.

• Property tax receipts.

In case of a newly constructed house, one should ask for Occupation Certificate

(OC), to make sure that sewage, water and electricity connections are in place.

The OC from a government agency is important as it means that the building is fit

for human habitation and that all the approvals have been obtained and that the

builder has kept all the norms.

In case of purchasing a resale apartment, you must ask for the share certificate

which is given by the society. The share has to be transferred to your name and

this certificate will be part of the ownership deed. You will have to check the No

objection certificate (NOC) issued by the society.

Buying though power of attorneyPurchasing a property can also be done through power of attorney. In most

cases it is done to evade stamp duty. The title of the property remains in the name

of the original owner but the right to use and enjoyment of the property goes with

the buyer. The buyer can also transfer the land to another buyer later on. But the

title will remain in the name of the original owner. This leads to fraud and is one

reason why banks don’t lend to people whose land has been purchased through

power of attorney. It is always better invest in a freehold property from a person

who legally owns it and register it in your own name.

Other approvalsCompletion certificate.The completion certificate issued by the municipality or the corporation is easily

the most important approval which has to be got. This certificate will prove that

the builder has complied with rules such as height of building, distance from the

road and adherence to plan. The occupation certificate should also verified to

ensure sewage, water and electricity connections.

These are few approvals are a must before any project gets the green signal:

• Building plan and floor plan approvals.

• Structural safety certificate.

• NOC ( No Objection certificate ) from the civic authority.

• Urban land ceiling certificate

• Commencement certificate.

• Title deed.

• Occupation certificate.

A team at AssistedProperty carries out a thorough check to see if a property has

received all the approvals listed here. AssistedProperty only recommends

properties which are approved by the government.

Sign-up with AssistedProperty today or call the IndiaProperty customer

services team on (+91) 9281 00 11 11 to avail this service.





















Floor Space Index (FSI)The floor space index or FSI gives an indication of how much built up space

can be constructed based on different parameters of setbacks, road widths

and ofcourse, the plot size. This is often determined by the local authorities

and has a direct effect on the price of the plot. The higher the FSI, the

greater is the space available for construction and hence higher the value.

Soil Type It is necessary to ascertain the soil type and ground water of a plot before

buying it. If the plot is unsuitable for deep digging, unstable or extremely

rocky, it would make the plot geologically unstable. This means the ground

would not be able to support any structure. The absence of sufficient

ground water would also be a major drawback, negatively effecting

the price of a plot. Before investing in a plot, it is essential to do

a basic site visit to understand the property with reference to the metrics

given above.

5. CHECK YOUR PAYMENT PLAN Over the last decade, the scale of development in all Indian Tier I and Tier

II cities has been colossal. In recent times, the real estate sector has proven

itself to be a lucrative investment platform. Real estate also follows the high

risk-high return game motivating buyers to invest in a property during

early stages of construction for higher returns.

With increasing borrowing rate from financial institutions, developers

have started devising new schemes to fund their projects. They offer

innovative payment plans for the buyers. In reality, sometimes these plans

usually end up entrapping the buyer.

The most widely used payment plans today are the 80:20 Plan, Flexi Plan,

Down Payment Plan and Construction Linked Plan. With difference in their

execution all these payment plans target buyers for bulk payments.

80:20 PlanThis plan is similar to the Subvention Plan, except the buyer pays 20% of

the property value at the time of booking and rest is paid by the bank. The

base price for such schemes is higher compared to the actual base price

for the project. Also, such projects have higher probability of getting

delayed. Moreover, even after 2-3 years the principal loan amount for the

buyer remains the same. So, eventually you are paying more as cost of the

property is higher than normal and so is the interest paid.

Down payment planHere the buyer pays 95% of the property value during initial months of

booking (usually within 1-3 months duration). In such cases the builder

gives a discount to the buyer (around 10-15% on the base price).

Flexi planIt’s a combination plan where the buyer pays close to 40-50% of the

property value initially and the balance amount is paid in equal

instalments or the balance amount gets coupled to the construction

linked plan. Here also buyer is given a discount.

Construction Linked PlanAs the name suggests after booking the property, the disbursement of

future payment is dependent on the construction of the property. Usually

these stages are as per laying of the structural slab at various levels. But

for under construction linked plans, around 80-90% of the payment is

taken by the developer within first few years of the purchase and mostly

post structural work show a slow progress. Under normal circumstances a

construction linked plan is logical as the payments are disbursed in parts

and interest paid is less than other plans. Also if the buyer has savings in

the future he needn’t use the whole loan value.

Risks involved• Many times when projects face heavy execution delays, there are

chances of developers taking the buyers for a ride. With no progress

or super slow progress of the project, huge sum of buyers’ money gets

trapped. In the end a buyer pays EMIs or higher interest on loan, but

has no clue when he would get possession of his house.

• It’s a buyer’s duty to keep his eyes open even after purchasing the

property. He should at regular time intervals visit the project site to check

the progress of the project. Also keeping a record in form of pictures is

a good option to compare the project’s progress over time. In cases

where a buyer is an NRI or lives in some other city he should make sure

that a friend or relative is doing the same on his behalf.

• In case of a township having multiple towers, the buyer should ensure

that he is paying as per progress of his tower and the developer is not

misleading him. Also, at regular intervals especially before releasing the

next payment, a buyer should open and check his payment plan to verify

the agreed upon timelines. For a better home buying experience –- be an

informed and active customer rather than an ignorant one.

6. FINAL PROPERTY PURCHASE CHECKLISTThe task of buying a property is tedious. The buyer must not base his

property buying decision on locality and budget alone. He must

consider other critical aspects such as the appreciation value of the

property, investment benefits from that property, builder reputation,

home loan approvals and the legal hassles involved, if any.

So here is a check list for you that will come in handy while you buy your

property.

Parties involved in the property purchase• Check if the property that you wish to purchase is in the name of the

sell or if there is a joint venture development involved. The name and

land title must be in the name of the seller.

• Get the identity and address proof of the seller.

• To avoid any future disputes from children of the seller (who are not

minors), their signature must be obtained on the bond/agreement.

• Any claim over the property by blood relatives of the seller, in the future,

must be handled by the seller and a clause ensuring the same must be

inserted in the sale deed.

• Through every stage of negotiation and purchase, check to see if there

are any third party interests, suppression of previous transaction, prior

agreement or litigations involved.

Previous dues paid and settled• Check if all dues like Land Revenue, Municipal Tax, Water Tax, Electricity

Board Charges etc. have been paid before the purchase is made.

• Also check if any loan has been obtained on the property. If yes, then

include a clause in the sale deed stating that the seller is responsible for

all the dues dated before the purchase.

• In case of future disputes involving the seller, add a clause in the deed

holding him responsible to clear and settle all such disputes.

Important Documents• Ask for the parental document

(also called the moola pathram in many states)

• The sale deed must clearly show the details of

the property - door/flat/Plot no., land area etc.

• Obtain the No Encumbrance Certificate.

• Obtain receipts of all payments made and the receipts

of tax payments made - water, property, corporation,

municipality, electricity, revenue etc. onto the date of purchase.

• Confirm the originality of stamp papers. Check to see if the

date of purchase of the stamp paper matches the date of documents.

Now that you have a checklist, what are you waiting for?

Start your property search now with AssistedProperty.com. Just log onto

www.assistedproperty.com and let us help you find your perfect home.

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• In case of a township having multiple towers, the buyer should ensure

that he is paying as per progress of his tower and the developer is not

misleading him. Also, at regular intervals especially before releasing the

next payment, a buyer should open and check his payment plan to verify

the agreed upon timelines. For a better home buying experience –- be an

informed and active customer rather than an ignorant one.

6. FINAL PROPERTY PURCHASE CHECKLISTThe task of buying a property is tedious. The buyer must not base his

property buying decision on locality and budget alone. He must

consider other critical aspects such as the appreciation value of the

property, investment benefits from that property, builder reputation,

home loan approvals and the legal hassles involved, if any.

So here is a check list for you that will come in handy while you buy your

property.

Parties involved in the property purchase• Check if the property that you wish to purchase is in the name of the

sell or if there is a joint venture development involved. The name and

land title must be in the name of the seller.

• Get the identity and address proof of the seller.

• To avoid any future disputes from children of the seller (who are not

minors), their signature must be obtained on the bond/agreement.

• Any claim over the property by blood relatives of the seller, in the future,

must be handled by the seller and a clause ensuring the same must be

inserted in the sale deed.

• Through every stage of negotiation and purchase, check to see if there

are any third party interests, suppression of previous transaction, prior

agreement or litigations involved.

Previous dues paid and settled• Check if all dues like Land Revenue, Municipal Tax, Water Tax, Electricity

Board Charges etc. have been paid before the purchase is made.

• Also check if any loan has been obtained on the property. If yes, then

include a clause in the sale deed stating that the seller is responsible for

all the dues dated before the purchase.

• In case of future disputes involving the seller, add a clause in the deed

holding him responsible to clear and settle all such disputes.

Important Documents• Ask for the parental document

(also called the moola pathram in many states)

• The sale deed must clearly show the details of

the property - door/flat/Plot no., land area etc.

• Obtain the No Encumbrance Certificate.

• Obtain receipts of all payments made and the receipts

of tax payments made - water, property, corporation,

municipality, electricity, revenue etc. onto the date of purchase.

• Confirm the originality of stamp papers. Check to see if the

date of purchase of the stamp paper matches the date of documents.

Now that you have a checklist, what are you waiting for?

Start your property search now with AssistedProperty.com. Just log onto

www.assistedproperty.com and let us help you find your perfect home.

7. CHOOSE THE RIGHT LOCATION

When and where to buy?Location is one of the most important considerations to make when purchasing

your home. Irrespective of whether you are purchasing your home for an

investment or as an end user, the location of your home not only determines the

future value of investment, but it also affects your family’s lifestyle. We bring you

a few factors to consider when selecting a location.

• Neighbourhood: While selecting the neighbourhood of your future home,it is

imperative to select one that matches your lifestyle and personalitya place

where you will be comfortable and will meet like–minded people.If you are

moving to a completely new locality do your research to get more information

about the locality including present issues, planned developments etc.

• Future Infrastructural Developments: Over the past decade, it has been

noticed that infrastructural improvements have had a direct and positive effect

on property prices. This is especially evident in the case of upcoming metros,

airports and highways driving growth in city suburbs across India. It is therefore

prudent to check for planned developments around the locality to ensure you get

the maximum appreciation from your investment.

• Social Infrastructure: There is a strong connection between the

socialinfrastructure in a neighbourhood and the emotional and social well-being

of residents. Having good quality educational institutes, malls, health care

facilities,hospitals, libraries in close proximity helps promote social and cultural

well-being and thereby a better lifestyle. An ideal locality should have a

well-balanced social infrastructure.

• Basic Civic Amenities: Another important aspect to keep in mind is the basic

civic amenities such as sewage, sanitation, power, water etc. However

attractive a locality or a real estate project is, the lack of these basic amenities

will greatly hinder the development of the area and your individual quality of

life.

• Connectivity: Ensure that the locality you are investing in is well connected to

other parts of the city. Ideally it is best to invest in an area that is close to the

metro station, highways, train and bus stations so that you are well linked to

parts of the city.

8. TECHNOLOGY THAT HELPS WITH PROPERTY SEARCH

A) Just a click away from locality info: Online real estate portals today

employ a 360 degree approach to property search. You can get all the

information about each locality in the dedicated locality pages rating each area

based on parameters like sanitation, utility, mobility, public amenities and

environment; all of which are indispensable in determining the overall appeal of

the locality. This data is obtained by exhaustive customer surveys conducted in

the respective city. For e.g., KYN (Know Your Neighbourhood) feature on

IndiaProperty.com gives the users a comprehensive analysis of the location of

their choice, so that they can weigh and compare the information about localities

before investing.

B) Your smart phone is the new property search tool:

In today’s day and age, everyone is constantly connected using their smart

phone. Real estate portals give you an option to search for properties on-the-go.

Get your property listings, post requirements and explore the Visual Search

feature powered by augmented reality on India Property’s mobile and tablet app.

This free app ensures ease and access and simpler property search.

9. SEEK EXPERT ASSISTANCEIn conclusion, it is important to do your checks and balances while selecting a

locality to invest in. However with today’s busy schedules, sieving through the

market and gathering locality and property information can be a daunting task.

Understanding this challenge, IndiaProperty.com has designed a special service

to guide buyers as they navigate the property markets. Assisted Property is a

unique service that assigns a dedicated property search manager to research,

review and shortlist properties, suited to each individual buyer’s requirements.

Expert assistance has many benefits• Unbiased reviews

• Saves valuable time in short listing properties and researching

about localities and builders

• Evaluation of properties, making the selection easier

• Access to complete property information

• Assistance on procuring home loans, sourcing legal opinions and site-visit services

We all dream of owning the perfect home, while some have the means

to purchase one, others don’t. And that is where home loans come into

the picture. A home loan could be either taken to buy a new house, to

redo an existing property or to construct a building from scratch.

Establishments like banks or financiers help procure a home loan.

No matter how well aware you are about loan procedures, there are

many points that miss the eye and cause a lot of hiccups in the lengthy

process. For all those who want your loan application process to be a

hassle-free experience here are a few things you should be well aware of.

1. PRE-APPROVED LOANSWhen banks approve an in-principal amount on the basis of your profile

it’s called a pre-approved loan. A pre-approved loan is usually offered

to those individual/customers who have a clean track record.

Some establishments also go on to offer loans to individuals who haven’t

taken a loan at all. Repayment of previous loan on time and clearing

credit card transactions within the given date are a few factors that

help zero down tentative customers for the bank. Pre-approved loans

are usually divided into two section -- unsecured and secured.

While unsecured pre-approved loans are of personal loans, the latter

could be used as car and home loans.

Pros:• Most of the time pre-approved loans are processed quickly, thereby

saving you from missing out on the opportunity to buy your dream

house soon.

• There are a number of discounts offered on the interest rate of a

pre-approved loan. So ensure you cross-verify before availing a loan.

• Having a pre-approved loan will help you negotiate with your sellers

as they are aware that your finances are prepared.

• Once the pre-approved loan is sanctioned, you can focus on looking

for your perfect property, as pre-approved loans are a better deal

compared to the loan your builder offers.

Cons: • Because pre-approved loans are valid for a limited period you will be

forced to hunt for your home at the earliest. If the decision to

purchase a home is taken in haste, there are a number of long-term

impacts that may affect you.

• Some banks charge a processing fee to process your pre-approved

loan. Remember, if you miss out on the time span, you might end up

paying the fee twice.

• Given the opportunity and the freedom to look for a home based your

maximum eligibility, you tend to go overboard in spite of

your stringent budget.

• At times the interest rates are subject to change without prior information.

• Check if the loan amount is suitable for you. Most of the times the bank

provides loan based on your credit history, so the sum that is approved

may not be of what your required. So check if the loan amount

is suitable for you.

2. DOCUMENTS REQUIRED You need to submit your bank account statements, your PAN card and tax

return details along with your pay slips to the bank.

Loan documents checklist

To make the loan process convenient it’s important to maintain a perfect

loan file. Here are a few documents that are required for the sanctioning

of your home loan.

• The application form along with a photograph that has been signed

across.

• You must also provide your identity, age and residence proof. You could

submit any of the following for the same - voter’s ID card, driving license,

PAN card, a credit card with a photograph or an employee ID card.

• You will also need to file your bank statement for the last six months.

Any pass book that shows your salary or income credited

could also be submitted.

• Salaried individuals need to submit their last three months’ salary slips.

Proof of business existence and educational qualification certificate need

to be submitted for the self-employed professionals or businessmen.

• Self-employed professionals and businessmen need to submit their last

three years Income Tax returns. And for all those who are in the service

sector, you could submit Form 16.

• Six months bank statements or last three years profit and loss and

balance sheet need to be submitted too.

• Processing fee cheque should also be submitted.

THE LOAN PROCESS

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• Some banks charge a processing fee to process your pre-approved

loan. Remember, if you miss out on the time span, you might end up

paying the fee twice.

• Given the opportunity and the freedom to look for a home based your

maximum eligibility, you tend to go overboard in spite of

your stringent budget.

• At times the interest rates are subject to change without prior information.

• Check if the loan amount is suitable for you. Most of the times the bank

provides loan based on your credit history, so the sum that is approved

may not be of what your required. So check if the loan amount

is suitable for you.

2. DOCUMENTS REQUIRED You need to submit your bank account statements, your PAN card and tax

return details along with your pay slips to the bank.

Loan documents checklist

To make the loan process convenient it’s important to maintain a perfect

loan file. Here are a few documents that are required for the sanctioning

of your home loan.

• The application form along with a photograph that has been signed

across.

• You must also provide your identity, age and residence proof. You could

submit any of the following for the same - voter’s ID card, driving license,

PAN card, a credit card with a photograph or an employee ID card.

• You will also need to file your bank statement for the last six months.

Any pass book that shows your salary or income credited

could also be submitted.

• Salaried individuals need to submit their last three months’ salary slips.

Proof of business existence and educational qualification certificate need

to be submitted for the self-employed professionals or businessmen.

• Self-employed professionals and businessmen need to submit their last

three years Income Tax returns. And for all those who are in the service

sector, you could submit Form 16.

• Six months bank statements or last three years profit and loss and

balance sheet need to be submitted too.

• Processing fee cheque should also be submitted.

3. PREPAYMENT OF LOANS Prepayment of loan is when the entire loan amount or a part of the loan is paid off by the borrower before the due date. While some banks allow prepayments,

others might charge a penalty fee because prepayment of loans upsets the bank’s profit calculation from the interest. Below are a few factors why borrowers

should consider prepaying their loans:

Why you should opt to prepay • Hang on to your loan if you just have a few years left. It might be a better deal for you to invest that amount somewhere else rather than prepaying our loan.

• Your loan benefits decline as the loan period shortens.

• Prepayment of lower interest rate loans will not be able to produce the same savings when compared to prepaying for loans at higher interest rates.

• And for all those who want to save a few bucks, prepaying your loans might force you to lose a few benefits like mortgage interests which is tax-deductible.

4. EMI EMI - Equated Monthly Instalment is a repayment sum monthly payable to the lending institution. Both interest and principal are a part of the EMI. However, EMIs have

higher interest component than the principal amount. If your EMI is less than 50 percent of your salary, then you might not want to consider prepayment as the interest

rates would fall within 15 months.

Advantages of EMI • EMI helps you buy anything and everything.

• Salaried individuals can now afford to buy something that is way beyond their reach and pay for goods in an equated sum.

• Giving the liberty to pay in equated amounts every month, EMIs are becoming popular with the common

• Banks too introduce many schemes and charge minimal amounts for commodities like mobile phones and air conditioners.

• Many individuals are unaware of how much the banks are charging them as EMI. EMI calculators help you cross-check the same.

Disadvantages of EMI • Until you pay off the principal amount you will be under debt. Some loans such as home loans are extended for 20 years,

so you must be prepared to be under a long-term debt.

• Because you are liable to pay off the principal amount first, you might have to stop purchasing other luxury products.

• Even if you can afford to clear the principal amount in one stroke, there are certain banks that do offer early payment as the banks might lose out on the interest.

• If individuals skip paying EMI, the establishments could take drastic measures like prepossessing your property.

Laying down penalties and legal action could also be taken against the individual.

5. HOME LOAN INSURANCE A plan that covers the borrower’s outstanding loan liabilities is termed as a home loan insurance. After the demise of the borrower, these proceeds are used to pay the

remaining loan amount. Usually these covers reduce as the loan amount is paid off. Once you buy a home loan, you will be offered a home loan insurance because

of the tie-up the insurance companies have. You could also opt to buy a home loan insurance cover separately too.

Key pointers • If you want to increase your regular outflow of cash, pay the premium instalment on time.

• The premium is usually doubled when a joint application is applied.

The insurance company is liable to pay for the losses even after the demise of any one of the joint applicants.

• You could pay the premium all in one shot or decide to pay them in regular instalments.

• Your age and medical records, the loan amount and the duration of your loan detects your premium.

• Under Section 80C, you can get a tax deduction as you are paying a life insurance premium.

• If you are paying the premium with your EMI, you will not be able to avail the insurance benefit.

But the amount paid towards the principal could get a deduction under Section 80C and the interest payments under Section 24.

Tax exemptions • The tax benefit in terms of interest can only be availed once the construction of the property is completed.

• You can avail maximum deduction towards an interest of Rs 2 lakh once your flat is considered to be self-occupied.

• For a property that has been let out, your entire interest sum is allowed as deductions against the rent.

• For deductions on the principal of your home loan, there is still ambiguity. However, once the property is constructed you could get your tax benefits under Section

80C. But remember, the overall limit is Rs 1.5 lakh per financial year.

• If you have availed a home loan from a bank for the first time, up to Rs. 25 lakh between 1 April 2013 and 31 March 2014, you will be entitled to an additional

deduction of interest of Rs 1 lakh. IndiaProperty has a dedicated section for home loans.

A team of experts take your credit history and all these factors into consideration and works out the best interest rates for you.

VAASTU AND FENG SHUI1. GUIDLINES TO ENSURE YOUR PROPERTY IS VAASTU COMPLIANTVaastu is an ancient Indian science of space, architecture and

construction that was primarily used in temple architecture. Today modern

Vaastu Shastra has proven to be an aesthetic way of construction to

propagate a free flow of cosmic energy in your homes. It has gained

immense popularity in the recent past, forcing builders and home owners

to construct a vaastu compliant home due to its increasing demand.

Here are a few pointers to keep in mind to check if your property is

Vaastu compliant.

For a residential site • The residential site should be a perfect square or a rectangle. A land cut

in corners is not recommended.

• If it is not a square or a rectangle, then the south-west and the south-east

side should be at an angle of 90 degrees from each other.

• L shaped, triangular, diamond shaped, oval or round plots are

considered inauspicious.

• The south-west and south-east side of the property should be in line with

each other. The south-west portion should not go beyond the south-east

part of the plot.

• Similarly an extension on the north-west part of the property is

considered to be ominous.

• The only favourable extension is the north-east side. It is believed to

bring wealth and prosperity. Ensure that your site is not short on the

north east direction.

• The entrance of the plot can be narrow compared to the rear end, but

the reverse is considered to be unfavourable.

• Always begin the construction of the house from the north-east side and

move towards south.

• Leave considerable amount of open space in the north-east side. Avoid

planting trees in this direction.

• Any elevation on the site should be restricted to the west and south. It

should be definitely avoided in the north and east directions.

• Plots situated beside two larger plots should be avoided. It is said to

bring poverty.

• It is also important to check if roads run straight at any four sides of the

house. It can however run parallel on any side.

For your home • The main door should be in the north-east zone.

• The rest of the doors should not be bigger than the main entrance of the

house.

• All the doors must open inwards, so that the energy remains in the

house.

• The property must not have three doors aligned in one line. This disrupt

the flow of energy.

• It is also favourable to have equal number of doors and windows.

• A pooja room or a meditation room should be in the north-east zone but

make sure the deity never faces south. It can face north, west or east.

• It is also favourable if the pooja room has a double shutter door.

• Make sure that there is no kitchen or toilet above the pooja or meditation

room.

• Photos of deceased family members should be placed in the south-west

corner of the house.

• You should always cook facing east. It is the most favourable direction.

Cooking facing north or south must be avoided.

• A toilet and kitchen should not face each other. It is also advisable not

to have a kitchen and toilet next to or in front of each other.

• Ideally the kitchen should be in the south-east corner of the house.

• The bathroom or the toilet should not be in the east or north-east portion

of the house.

• The bedroom, dining room and the living room should not have an attic

above them. Large beams on the ceiling should also be avoided in

these rooms.

• It is favourable to have bedrooms in south, south-west, west or

north-west corner of the house. East, north and south-east corners should

be avoided.

• The bedroom of the head of the house like parents should ideally be in

the south-west corner.

• The earning members of the family should occupy the north-west side.

• Bedrooms in the south and west portions of the house should be

occupied by sons whereas the ones in the north-west should be occupied

by the daughters.

2. DOING UP YOUR HOMES WITH FENG SHUIBuying a home is one aspect of the process, designing, decorating and

constructing is another. One such system widely used across Asia is Feng

Shui. It is Chinese philosophical ideology, said to create harmony in your

living space with the placement and use of energies and natural elements.

Although this topic might overwhelm individuals, keep these pointers in mind

and let your home reflect positive energy.

Clutter and repairs: A home full of clutter will be an unhappy home. This

home will fail to attract positive energy according to Feng Shui. Clutter

blocks the flow of energy through your home. Get rid of things which are of no use, broken or bring back unhappy memories. If something needs fixing, it has to be

immediately to allow for the free flow of energy.

Furniture: The placement of furniture is very important as far the flow of energy is concerned. Beds, chairs or desks should not be placed right across or with its back towards

the main door. People should be able to sit with their backs to a wall whenever possible. Each piece of furniture should have enough space around it to allow for the

unhindered flow of energy.

Mirrors: Mirrors are supposed to reflect positive energy and curtail the flow of negative energy around the home. According to the principles of Feng Shui, mirrors double

the potency of positive energy. But mirrors should not be placed on walls directly facing the main door as the energy from your home would be sent outside by the mirrors.

Mirrors should also not be mounted on walls facing your bed.

Plants: Plants hold a special importance to the Chinese. They are supposed to promote growth, prosperity, and good luck. As such Feng Shui encourages the placement of

plants in your office or home. But one should be careful as far the placement of these plants is concerned.

Colours: Colours hold a special significance in Feng Shui. Bright colours are encouraged in Feng Shui. Dark colours draw negative energy, hence their usage is discouraged.

Green represents life and hope, yellow represents power and happiness, while red represents luck and purple royalty.

B

Balloon Payment- A large amount that is paid to clear a debt.

Broker - An individual or a company that brings together the owners and buyers

with a view to complete a real estate transaction. He charges a percentage as

brokerage fee.

Base rent- A fixed amount of rent that is determined before incorporating other

expenses or factors that act as provisions for increasing rent over the term of lease.

Built up area- Refers to the area that covers the carpet area, the thickness of the

walls and common areas like car parking, lobbies and atriums.

Building contract- A contract between the building contractor and the

owner/occupier of the property stating all the terms and conditions under which the

construction can be carried out.

BHK - Bedroom, Hall, Kitchen

BSP- Basic Selling Price

Bank-owned property- A property that has been possessed by a bank when a

buyer defaults on payments.

Buy-to-Let- Buying a residential property for the purpose of earning revenue through

rentals.

Buyer’s market - When the market favours the end users/buyers with lower

property prices coupled with increase in the number of properties

for sale.

Building code/By laws- They are a set of standards established and enforced by

the local government to regulate the minimum standard of construction, zoning,

building design and structural safety of the buildings.

C

Carpet area - The area that is calculated from wall to wall inside the house.

Common area - Areas that can be used by more than one tenant/owner withinthe

building. E.g. Parking lot and lobbies.

Common area maintenance - Charges incurred by the tenant or owner for the

upkeep of the common areas.

Capital transaction - The act of purchasing or selling a property.

Condominium - An apartment or a building with a number of individual flats or

houses that can be owned or rented.

Commercial property - A property that is let out for business purposes only.

Construction Linked Plan (CLP)- CLP is a payment plan where the instalments

are paid to the developer as per the predetermined stages of construction of the

property.

D

Deposit- An amount that a potential buyer submits to show his seriousness about

purchasing the property.

Down payment- A portion of the purchased property price that is paid up front.

Debt- A sum of money that is owed to another individual.

Developer- An individual or a company which develops sites that can be used

for residential or commercial properties.

E

Encroachments- A section of the property or establishment that illegally

protrudes into another individual’s property or street.

Expansion- The act of expanding a surface.

EMI (Equated Monthly Instalment)- The customer repays the loan through

EMIs.

Estate agent- An individual who acts as an agent to sell or rent out

buildings/land for his clients.

Elevation- It is the front or side view of a building.

F

Floating rate- Any interest rate that shifts on a repeated basis. The change is

usually driven by outside factors like the prime interest rate.

Fixed rate- A loan interest that remains the same throughout the duration of

your loan term.

Fixed lease- A fixed rental amount that a lessee pays through out the duration

of the lease term.

FSI (Floor Space Index)- The ratio of the complete floor area of the building to

the size of the land.

Farmhouse- A farm house is a building that serves as the residential property

of a farm.

Finance- The act of providing funds to an individual or an enterprise.

Floor plan- A floor plan is a diagram or a sketch of the layout of the building.

It also shows specification of individual rooms.

G

Gated community- A gated community is a residential or a housing estate that

is very tightly guarded with walls. These communities have a number of

residential units and include various amenities.

Gross area- Gross area is the total floor area of a building. Exterior of the walls

are included too.

Gross building area- Gross building area equals to the total floor area of the

building including basement, balconies and exterior walls.

Ground coverage- The ground coverage is the ground area covered

immediately above the plinth level by the building.

H

Home inspection- An examination of the structure of the house that helps you

determine the condition of the property for evaluation purposes.

Household- A house and its occupants living in a unit residence are regarded

as a household

Heir- An individual who lawfully inherits an estate or a property of another on

that person’s demise.

Home loan- A sum that is advanced to a buyer by a bank or an individual to

assist in buying a property.

I

Insurance-The act of protecting or insuring a property or an individual against

the loss or damage caused by unanticipated events such as death, fire, theft etc.

Inventory- A detailed list or a record of property Immovable property-

An immovable object that is attached to the earth like land and buildings.

Investment property- When the owner leases out a property not occupied by

him to an individual with an intent to earn an income e.g. -renting a house.

J

Joint tenants- Co-owners who share ownership of land or other items at

identical interests.

K

Kiosk- Tiny retail outlets which are located at public places where customers

could purchase items like newspaper.

L

Lease- A contract where the property is conveyed to another individual for a

specified period usually for rent.

Loan- A sum of money that is borrowed for temporary use. The loan sum is

expected to be paid back with interest.

Landlord- An individual who owns and rents out buildings and lands.

NEGOTIATINGAND CLOSING DEALNegotiation plays a major role when it comes to purchasing a property. Adopting a realistic approach and arming yourself with knowledge about the

current market trends can help you get a good deal.

Knowing the market After you have zeroed down on the property you want to purchase, it is best you get the rates of other projects in that locality. These rates will help you

during your negotiation. Knowing how long the project has been on the market will also help as the builder might want to get rid of projects which

have not been sold. See how the project was priced during the pre-launch stage and how the price trend has been since then. If the prices have fallen

since the pre-launch stage, you can bargain and get better rates. Doing some background research on the builder will also help you. The builder might

be cash strapped and looking to sell in a hurry. There might be some targets that the builder will have to meet as well, so if you have done your research

properly you can negotiate a good deal. You can also find out how much of a discount the builder is willing to offer and prepare to negotiate around

that amount.

Expressing interest When you are going to negotiate with the builder, you need to have a pre-approved loan ready. Also, have an amount set aside just in case you have to

make an upfront payment. You might also have to make an offer even when you are unsure if the builder will accept it or not. These steps will show the

builder that you are a buyer who is serious about making the purchase.

Once this is established, the builder might give you a better deal. Besides this you can also increase your bargaining power if you negotiate as a group.

What to expect Don’t go in to a negotiation expecting a huge discount. A builder will typically offer a 5 to 7 % discount on the quoted price. If the builder has refused

your initial offer, wait for a few days as chances are that the builder might call you back. Some builders might have bought the land when the prices

were high and will be willing to wait rather than sell the property at a lower price. So it is essential that you gauge the situation and learn to walk away

when the builder refuses to budge. Ensure that you have a set of options ready in case the deal does not come through.

Landmarks- Landmarks are buildings or heritage sites that are

marked to be preserved by the government.

M

Market Value- Is the price at which the seller is willing to sell

and the buyer willing to buy.

Mortgage- Is a contract or a deed where an individual borrows

an amount to purchase a property, and if the borrower fails to

repay the money, the lender may take possession of the property.

Mortgagee- An individual who lends money in the mortgage

agreement is a mortgagee.

Maintenance Charge- The charges incurred by tenant or owner

for the upkeep of common areas.

Master Plan- Is a document or a certificate that narrates the

overall development of city/site using maps.

O

Occupant- Is a person or a group of people who reside in a

house or office estate.

Office Park- Is a complex or a building with a number of

corporate office grouped together.

Owner- Is an individual who is the legal possessor of a property

or an asset.

Office- Are set of rooms where business or professional work is

carried out.

Ownership- The act of owning and controlling a property.

P

Price Range- The highest and the lowest amount the buyer is

willing to pay to buy a home.

Property- Ownership or possession of intangible and tangible

things like a piece of land or real estate.

Property Tax- An amount that is levied as tax on real or

personal property.

Public housing- Residential areas that are owned and funded by

the government that are made available for low-income families.

Premises- Is usually a part of a building or a building including

the adjacent grounds.

Pre-Launch- Is a phase before the site is official launched.

Plan- A proposition or a tentative project.

R

Real Estate Agent- Is a person who works for a real estate

broker. This individual is licensed to represent either the buyer or

a seller in a transaction in exchange for a commission.

Realtor - Is an individual or a real-estate agent who is affiliated

with the National Association of Realtors.

Remaining Balance- A sum of money from the principal amount

that has not been repaid yet.

Rentable area- A measured unit of a building that could be

rented or leased to tenants.

Residential Property- A property that used for residential

purposes like apartments, single-family homes and town-houses.

Renovate- Restoring, renovating or reviving a building to

good condition.

Row house- A series of similar architecturally designed homes

built side by side and joined by common walls.

Rental Agreement- A rental agreement is a document that describes the

terms and conditions of dwelling and calls for the lessee to pay the lessor for

the use of an asset.

Ready to Occupy- Refers to a space that needs no further alteration or

improvements by the tenant or the landlord.

Resale Property- The act of selling a property for the second time.

A resale property gives buyers an opportunity to purchase a previously owned

home.

S

Security- When an individual deposits or gives something as assurance of

the fulfilment of an obligation like repayment of a loan.

Shopping Mall- Are large retail complexes or structures consisting of a

number shops, restaurants in a single large building.

Site Plans- A site plan is a landscape architecture document that shows

boundaries and the physical extent of the ground.

Super Built-up Area- An aggregate superficial area of the building taking

each floor, external walls, and common areas into account.

Slab- A slab is a type of a concrete foundation on which the home/building

has to be built on.

Section- A unit of land that is equal to 640 acres.

T

Tenants- An individual or a lessee who occupies or resides over a property

through lease.

Tenure- The act of holding something in one’s possession.

Trade area- An area that is designated to customers who come to do business.

Technology Park- Are major developments that

comprise of high-end office spaces as well as residential and retail

developments.

Taxes- A compulsory contribution that is levied by the government on

people’s income and business profits.

Town-house- Are a number of simple or duplex units that share the same

boundary with other homes.

Township- A small settlement or a town that serves as the business centre for

rural areas.

Title deed- A legal document that acts as on evidence of rights like

ownership of a property.

U

Utilities- Private or public services that are offered as part of the

development as known as utilities. E.g. Water, gas and electricity.

Urban centres- An area in the city that has been largely developed and has

several independent administrative districts.

Under-valuation- When a value of the property is proposed to be lesser

than the fair market value.

V

Vacant Land- A plot of land that is empty and has not been developed.

Vacancy- A number of units that are vacant and are available for

occupancy at a given time within a given market.

Vaastu Shastra- Is an ancient doctrine or a design system that specifies the

detailed methodology of designing building. This system harmonizes any

real estate development with five elements like air, water, earth, fire

and space.

Valuation- The act of making a written analysis of the estimated value of the

property for a particular purpose of letting or purchasing property.

Value- The price of an asset that might fetch more reasonable profit if disposed

at the right time.

Villa- A luxurious independent houses that are built on own grounds.

W

Warehouse- Warehouses are structures that are built for the purpose of

storage. Usually raw materials or finished goods are stored here.

Y

Yield- The interest earned/returned by an investor on an investment. It’s usually

stated as a percentage of the sum invested.

Z

Zone- A particular area of a land or a part of the building that is allocated for

a particular purpose.

Zoning- The division of specific areas by the local planning authority for the

purpose of legally defining land use.

LEGAL GLOSSARY A

Affidavit- A written statement of facts voluntarily made by an affiant under an

oath or affirmation administered by a person authorized to do so

by law.

Assumption Clause- A provision in a mortgage contract that allows the seller

of a home to pass responsibility to the buyer of the home for the

existing mortgage.

ARM (Adjustable-rate mortgage) - A mortgage in which the interest changes

periodically, according to corresponding fluctuations in an index. All ARMs are

tied to indexes Amortisation- The loan payment consists of a portion which will

be applied to pay the accruing interest on a loan, with the remainder being

applied to the principal. Over time, the interest portion decreases as the loan

balance decreases and the amount applied to principal increases so that the

loan is paid off (amortised) in the specified time.

Amortisation schedule- A table which shows how much of each payment will

be applied toward principal and how much toward interest over the life of the

loan. It also shows the gradual decrease of the loan balance until it reaches

zero.

Appraiser- An individual qualified by education, training, and experience to

estimate the value of real property and personal property. Although some

appraisers work directly for mortgage lenders, most are independent.

Appreciation- The increase in the value of a property due to changes in market

conditions, inflation, or other causes.

Assessment- The placing of a value on property for the purpose of taxation.

B

Beneficial Use- A right to utilize real property, including light, air and access

to it, in any lawful manner to gain a profit, advantage, or enjoyment from it.

A right to enjoy real or Personal Property held by a person who has equitable

title to it while legal title is held by another. A beneficial use involves greater

rights than a mere right to possession of land, since it extends to the light and

air over the land and access to it, which can be infringed by the beneficial use

of other property by another owner.

Beneficiary- Anybody who gains an advantage and/or profits from

something. In the financial world, a beneficiary typically refers to someone who

is eligible to receive distributions from a trust, will or life insurance policy.

Beneficiaries are either named specifically in these documents or they have met

the stipulations that make them eligible for whatever distribution is specified.

Bond- Is an instrument of indebtedness of the bond issuer to the holders. It is

a debt security, under which the issuer owes the holders a debt and, depending

on the terms of the bond, is obliged to pay them interest (the coupon) and/or to

repay the principal at a later date, termed the maturity date.

C

Contract- An agreement that is enforceable by law.

E

Encumbrance- A claim against a property by another party. Encumbrance

usually impacts the transferability of the property.

P

Penal rent- A form of a punishment to a tenant for failing to honour his

obligation to pay rent at the proper time, taking the form of a vastly higher

figure

being payable during the period of default.

R

Remaining Term- The original term of the loan after the number of payments

made has been subtracted; the number of payments or time period left on a

loan. Registration- An act of officially entering name and other details of

entity/transaction for purpose of official records.

S

Sale deed- Document in writing that transfers the ownership of property from

the seller to the buyer for a consideration. This document has to be registered

compulsorily.

Sales agreement- Formal contract by which a seller agrees to sell and a

buyer agrees to buy, under certain terms and conditions spelled out in writing in

the document signed by both parties.

13

14








Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L






POST PURCHASE1. LEGAL ASSISTANCE, REGISTRY AND DOCUMENTATION If you thought finding a property was troublesome, wait till your actually get to

signing the paperwork. Once the initial stage of selecting the property is complete,

what is more crucial is the registry and documentation you will need to sign to

become the proud owner of a property. If you want to invest your life savings in a

fruitful manner, ensure you read the sales agreement thoroughly before signing on

the dotted line. And if you are seeking legal assistance before you make the

commitment, look out for some of these pointers first and then sign the sales

agreement with the developer.

Title deedsThe first step is to see the title deed of the land that you are going to buy.

• Confirm whether the land is in the name of the seller and that the full right to sell

the land lies with only him and no other person.

• It is better to get the original deed examined by a lawyer. This is to check details

as to whether the seller has permitted any entry/access to others through this land

and whether any other facts have been suppressed/left undisclosed by

the owner of the land.

• Along with the title deed, you can also demand to see the previous deeds of the

land available with the seller.

• In some cases, more than one person may own the land. So before registering,

check if there is more than one owner. If there are more owners then get

a release certificate from the other owners involved.

Conveyance Deed or Sale Deed• A sale agreement is a document by which the title of property is conveyed

by the seller to the purchaser.

• Here, conveyance is the act of transferring ownership of the property from

a seller to the buyer.

• The document helps you ascertain whether the property, which you are buying

is on land belonging to the society/ builder/development authority in which

the property is located.

Tax receipt and bills Property taxes, which are due to the government or municipality are the first charge

on the property. Therefore inquiries must be made in government and municipal

offices to ascertain whether all taxes have been paid up to date.

• Inspect whether the latest taxes have been paid.

• Inquire with various departments of the municipality to ascertain whether any

notices or requisitions relating to the property are outstanding.

• If you are buying a house along with the property, then the house tax receipt

should also be checked.

• Also ensure that the electricity and water bills are up-to-date and if there is

balance payment to be made, ensure that it is made by the seller.

Encumbrance CertificateBefore buying any land or house, it is important to confirm that the land does not

have any legal dues.

• Obtain a certificate called encumbrance from the sub registrar office where the

deed has been registered, stating that the said land does not have any

legal dues and complaints.

• You can check the encumbrance certificate for the past thirteen years or could

demand to verify the 30 years encumbrance certificate of the property.

Pledged land Some people may have taken loan from the bank by pledging their land.

• Ensure that the seller has paid back all the dues.

• Ask for a release certificate from the bank which is necessary to release

all the debts over the land legally.

Measuring the land • It is advisable to measure the land before registering the land in your name.

Take the help of a recognised surveyor to ensure that the measurements

of the plot and its borders are accurate.

• You could also take the survey sketch of the land from the survey department

and compare it for accuracy.

You Can Employ Experts To Do This Tedious Task

AssistedProperty has a dedicated team which helps you with the registry

& documentation process.

2. PURCHASING LAND FROM NRI LAND OWNERS A person staying abroad can also sell his land in India by giving the power of

attorney to a third person authorising him to sell the land on his behalf.

In such cases, the power of attorney should be witnessed and duly signed by

an officer in the Indian embassy in his province.

Power of attorney • Power of attorney is the power given to an agent by the principal to execute

several acts and deeds for and on behalf of the principal. Stamp duty payable

depends on the nature of power given.

• When ‘power’ is given in respect to a number of acts in a number of

transactions it is called ‘general power of attorney. It is always advisable to hold

a registered GPA while registering an immovable property in order to give

a better title to the property.

• When ‘power’ is given in respect to a particular act pertaining to one transaction

it is called ‘special power of attorney.

Agreement Once all the matters, financial/otherwise are settled between the parties, it is better

to give an advance and write an agreement. This ensures that the owner does not

change his word regarding the cost as well as make a sale to someone else who

offers more money.

• The agreement should state the actual cost, the advance amount,

the time span within which the actual sale should take place and how to

proceed in case of any default from either parties to cover the loss.

• The agreement can be prepared by a lawyer and should be signed by both

the parties and two witnesses.

• After signing the agreement if one of the parties makes a defaults,

the other party can take legal action against him.

Stamp Duty It is a tax similar to sales tax and income tax collected by the government and must

be paid in full and on time.

• A stamp duty paid is considered a legal document and as such gets evidentiary

value and is admitted as evidence in courts.

• Stamp duty is a State subject and hence would vary from state to state.

• When an agreement is to be stamped, it needs to be unsigned and

undated. One may execute the agreement only after the Stamp Office

affixes stamps on the agreement.



M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.











Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L






Pledged land Some people may have taken loan from the bank by pledging their land.

• Ensure that the seller has paid back all the dues.

• Ask for a release certificate from the bank which is necessary to release

all the debts over the land legally.

Measuring the land • It is advisable to measure the land before registering the land in your name.

Take the help of a recognised surveyor to ensure that the measurements

of the plot and its borders are accurate.

• You could also take the survey sketch of the land from the survey department

and compare it for accuracy.

You Can Employ Experts To Do This Tedious Task

AssistedProperty has a dedicated team which helps you with the registry

& documentation process.

2. PURCHASING LAND FROM NRI LAND OWNERS A person staying abroad can also sell his land in India by giving the power of

attorney to a third person authorising him to sell the land on his behalf.

In such cases, the power of attorney should be witnessed and duly signed by

an officer in the Indian embassy in his province.

Power of attorney • Power of attorney is the power given to an agent by the principal to execute

several acts and deeds for and on behalf of the principal. Stamp duty payable

depends on the nature of power given.

• When ‘power’ is given in respect to a number of acts in a number of

transactions it is called ‘general power of attorney. It is always advisable to hold

a registered GPA while registering an immovable property in order to give

a better title to the property.

• When ‘power’ is given in respect to a particular act pertaining to one transaction

it is called ‘special power of attorney.

Agreement Once all the matters, financial/otherwise are settled between the parties, it is better

to give an advance and write an agreement. This ensures that the owner does not

change his word regarding the cost as well as make a sale to someone else who

offers more money.

• The agreement should state the actual cost, the advance amount,

the time span within which the actual sale should take place and how to

proceed in case of any default from either parties to cover the loss.

• The agreement can be prepared by a lawyer and should be signed by both

the parties and two witnesses.

• After signing the agreement if one of the parties makes a defaults,

the other party can take legal action against him.

Stamp Duty It is a tax similar to sales tax and income tax collected by the government and must

be paid in full and on time.

• A stamp duty paid is considered a legal document and as such gets evidentiary

value and is admitted as evidence in courts.

• Stamp duty is a State subject and hence would vary from state to state.

• When an agreement is to be stamped, it needs to be unsigned and

undated. One may execute the agreement only after the Stamp Office

affixes stamps on the agreement.

Registration Registration is the process of recording a copy of a document transferring the title of an immovable property to the office of the Registrar.

It acts as proof that a transaction has taken place.

• A draft should be prepared before actually writing the document in stamp paper. Registration is done after the parties execute the document.

• The agreement should be registered with the Sub-Registrar of Assurance under the provisions of the Indian Registration Act,

1908 within four months from the date of execution of the document.

• Make sure all the details mentioned are accurate.

• Original title deed, previous deeds, Property/House Tax receipts, etc. plus two witnesses are needed for registering the property.

• The expenses involved during registration include Stamp Duty, registration fees, document writers/ lawyer’s fees etc.

• Make sure that the deed is registered within the time limit mentioned in the agreement.

• Stamp duty should be paid prior to the registration.

If you think these formalities are too tedious and complicated, you could always enrol for the AssistedProperty service where experts search

property online and ensure that the whole process remains stress free.



M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.




15

16








Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L






Registration Registration is the process of recording a copy of a document transferring the title of an immovable property to the office of the Registrar.

It acts as proof that a transaction has taken place.

• A draft should be prepared before actually writing the document in stamp paper. Registration is done after the parties execute the document.

• The agreement should be registered with the Sub-Registrar of Assurance under the provisions of the Indian Registration Act,

1908 within four months from the date of execution of the document.

• Make sure all the details mentioned are accurate.

• Original title deed, previous deeds, Property/House Tax receipts, etc. plus two witnesses are needed for registering the property.

• The expenses involved during registration include Stamp Duty, registration fees, document writers/ lawyer’s fees etc.

• Make sure that the deed is registered within the time limit mentioned in the agreement.

• Stamp duty should be paid prior to the registration.

If you think these formalities are too tedious and complicated, you could always enrol for the AssistedProperty service where experts search

property online and ensure that the whole process remains stress free.


1. HOW TO MAKE THE MOST OF YOUR INVESTMENTReal estate investment involves years of financial planning for an individual. This tedious process reaps many benefits in the future, if the owner understands the ways

and means of optimum utilization of their real estate investment. Revenue generation and maintenance of your property are two important aspects to be considered here.

Factors to be considered before buying a property for better returns: Research Make sure you carry out thorough research on the web for the particular project. The project should move at a good pace in order to make for a safe investment choice.

If a project is nearly 30% complete, it gives an assurance in terms of approvals and other paperwork. Bank approved projects should be chosen over others for the same

reason. Check with property brokers as well as builders to see who offers a better price.

Location & connectivityProperties in most metros give good return of investment compared to other towns or cities. Most property investment should be given a gestation period of up to 4 years

for better returns. Properties with good connectivity garner good value for money. Close proximity to bus, railway or metro station, airport etc.

is always an added advantage.

Pre-launch or under construction project? Pre-launch projects pose greater risk as the builders might not have all the necessary approvals in place, although these projects have good discounts and offers.

If you have the luxury to take a risk you can go for the pre-launch offers otherwise it is always advisable to go for a newly launched project by a reputed builder in

a good neighbourhood.

Basic Infrastructure Make sure the basic infrastructure is in place, like water, electricity, safety, roads etc. Most upcoming localities offer great land prices and good appreciation, although

certain basic amenities may or may not be in place.

Apartments or plot?Plot is always a preferred investment option as it shows greater appreciation in future. But if you are looking for regular rental yields, apartments are always better.

Also individual houses yields lower rentals as compared to apartments. Make an informed decision considering all the options given.

Buyers’ or sellers’ market? You can gain high profit margins only in due course of time. The present scenario suggests that the market is highly competitive and the builders have come up with

numerous offers to attract buyers. Therefore, it definitely seems like a buyer centric market.

Panchayat approvals or government approval? When investing in a property one must make sure all the approvals are in place. If the property is only approved by the designated panchayat, it poses a few risks in

terms on return of investment. These properties might not have all the civic amenities in place like sewage, electricity, road etc. It is always advisable to buy property

with municipal council or government approval. You will also get a bank loan easily if you hold the municipality’s approval.

2. WHAT IS THE RIGHT TIME TO EXIT?Before your make selling decisionSelling a property is a big decision. At this juncture, one’s investment needs to reap maximum return of investment. Therefore you must consider these factors before you

sell your property:

• Check the particular locality’s property market before you sell. The key to selling your property is patience. It takes a while to get the right taker at the right price.

Therefore you need to start with checking property listings in the locality and also check with brokers before fixing a price. Over-pricing and underpricing,

both can affect your selling decision and process.

• The return on investment by selling a property depends on how long you owned it. Tax benefits needs to be kept in mind before making a selling decision.

If you sell your property too soon, say within 3 years then you will lose tax benefits.

• If your property has a mortgage on it, then you must clear your loans before selling it. Transfer of such properties require a lot of paperwork and documentation.



M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.











Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L







1. HOW TO MAKE THE MOST OF YOUR INVESTMENTReal estate investment involves years of financial planning for an individual. This tedious process reaps many benefits in the future, if the owner understands the ways

and means of optimum utilization of their real estate investment. Revenue generation and maintenance of your property are two important aspects to be considered here.

Factors to be considered before buying a property for better returns: Research Make sure you carry out thorough research on the web for the particular project. The project should move at a good pace in order to make for a safe investment choice.

If a project is nearly 30% complete, it gives an assurance in terms of approvals and other paperwork. Bank approved projects should be chosen over others for the same

reason. Check with property brokers as well as builders to see who offers a better price.

Location & connectivityProperties in most metros give good return of investment compared to other towns or cities. Most property investment should be given a gestation period of up to 4 years

for better returns. Properties with good connectivity garner good value for money. Close proximity to bus, railway or metro station, airport etc.

is always an added advantage.

Pre-launch or under construction project? Pre-launch projects pose greater risk as the builders might not have all the necessary approvals in place, although these projects have good discounts and offers.

If you have the luxury to take a risk you can go for the pre-launch offers otherwise it is always advisable to go for a newly launched project by a reputed builder in

a good neighbourhood.

Basic Infrastructure Make sure the basic infrastructure is in place, like water, electricity, safety, roads etc. Most upcoming localities offer great land prices and good appreciation, although

certain basic amenities may or may not be in place.

Apartments or plot?Plot is always a preferred investment option as it shows greater appreciation in future. But if you are looking for regular rental yields, apartments are always better.

Also individual houses yields lower rentals as compared to apartments. Make an informed decision considering all the options given.

Buyers’ or sellers’ market? You can gain high profit margins only in due course of time. The present scenario suggests that the market is highly competitive and the builders have come up with

numerous offers to attract buyers. Therefore, it definitely seems like a buyer centric market.

Panchayat approvals or government approval? When investing in a property one must make sure all the approvals are in place. If the property is only approved by the designated panchayat, it poses a few risks in

terms on return of investment. These properties might not have all the civic amenities in place like sewage, electricity, road etc. It is always advisable to buy property

with municipal council or government approval. You will also get a bank loan easily if you hold the municipality’s approval.

2. WHAT IS THE RIGHT TIME TO EXIT?Before your make selling decisionSelling a property is a big decision. At this juncture, one’s investment needs to reap maximum return of investment. Therefore you must consider these factors before you

sell your property:

• Check the particular locality’s property market before you sell. The key to selling your property is patience. It takes a while to get the right taker at the right price.

Therefore you need to start with checking property listings in the locality and also check with brokers before fixing a price. Over-pricing and underpricing,

both can affect your selling decision and process.

• The return on investment by selling a property depends on how long you owned it. Tax benefits needs to be kept in mind before making a selling decision.

If you sell your property too soon, say within 3 years then you will lose tax benefits.

• If your property has a mortgage on it, then you must clear your loans before selling it. Transfer of such properties require a lot of paperwork and documentation.

How to sell your property? Selling is considered to be a very difficult task as compared to buying.

You need to look at all avenues to sell you property so that you can check

and weigh your options. Brokers have a good understanding of the local

property market. The best option would be to list your property in real

estate portals like IndiaProperty.com. You can explore many options using

these portals.

When to exit? Real estate investment cannot reap immediate benefits. The minimum time

required for a property to show any appreciation is about 3-4 years.

So make the right buying decision when you purchase the property, so

that you have a clear exit strategy while selling it in the future.

Things to keep in mind before selling: • Consider the impact on tax benefits before selling the property

• Legal fee, stamp duty, brokerage etc. need to be factored in

• Pre-payment of loan invites penalties. Therefore if you consider

that route, do analyse its financial implications.

• The current status of the property including condition and maintenance

of the building, specifications of the property,

developments in the locality in the span of possession

of the property need to be looked at.

Documentation required before selling: • Housing society share certificate- in case the property is a part

of a housing society

• NOC (No Objection Certificate) from the housing society

• Joint ownership requires a document expressing consent to sell

by both parties

• Sale deed- this confirms that the property belongs to the seller and

that they have the right to sell. If the property has been transferred

to many buyers, then those documents need to be produced too.

• Purchase deed

• Copies of stamp duty and registration documents

• Mortgage papers if required



M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.




17

18








Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L






GUIDELINES FOR NRIsSELLING PROPERTY IN INDIA There is a growing concern among NRIs (Non-Resident Indians) when it comes to their immovable assets in India, especially when considering disposal of the property

and repatriation of funds. Here are a few pointers that will clear those doubts:

• NRIs are free to sell property, either residential or commercial to a person living in India, a Person of Indian Origin (PIO) or to another NRI.

• NRIs can sell agricultural land, farm house or plantations only to an Indian citizen, who is residing in India. A foreign national of non-Indian origin residing outside

India, will need to get a prior approval from the Reserve Bank of India (RBI), to sell agricultural land/farm house or a plantation property in India.

An NRI can repatriate sale proceeds under these following conditions: • When the property was acquired by the seller in accordance with the provisions of the foreign exchange law at the time of acquisition.

• When the amount to be repatriated is not more than the amount paid for acquiring the property in foreign exchange, received through proper banking channels

or the amount was paid out of funds held in the Foreign Currency Non-Resident (FCNR) account or the foreign currency equivalent on the date of payment

of the amount drawn from the Non-Resident External (NRE).

• The sale proceeds of not more than two properties can be repatriated.

To repatriate the sales proceeds outside India: • The NRI needs to buy or draw foreign exchange from an authorised dealer and remit it outside India through normal banking channels. They can also credit it into an

account denominated in foreign currency or to an account in Indian currency held by an authorised dealer from which it can be converted into foreign currency.

• If the property was acquired out of rupee resources or if the loan was repaid by close relatives in India, the amount can be credited only to the Non-Resident Ordinary

(NRO) account.

Till what limit can NRIs repatriate? • NRIs can repatriate up to $ 1 million per financial year out of the balance in the NRO

account of the sale proceeds of assets purchased or assets in India which were acquired

by inheritance or legacy.

• The NRI would have to produce documentary evidence to support the acquisition,

inheritance or legacy, a tax clearance certificate, a no objection certificate from the Income

Tax authority for the remittance.

• Remittance which exceeds $1 million needs the permission of the RBI.

• The sale proceeds of property which was gifted to the NRI must be credited to the NRO

account. The NRI can repatriate funds from the NRO account up to $1 million in one

financial year after payment of the applicable taxes.

In the case of an inheritance, the NRI can repatriate funds under the following

conditions:

• The amount should not be more than $1 million in one financial year.

• The NRI must produce documentary evidence, a certificate from a Chartered Accountant

in the format prescribed by the Central Board of Direct Taxes

What if the dead of settlement is made by the NRI’s parents or family?

• The settlement will take place on the death of the settler

• The original deed of settlement, a tax clearance, and a no objection certification from the

Income Tax authority should be produced for the remittance.

Repatriation of the sale proceeds for the foreign national:

• In the case of a foreign national the sale proceeds can be repatriated if the property is

inherited from a person residing outside India with the prior approval of the RBI.

• The foreign national has to approach the RBI documentary evidence and the certification

from the Chartered Accountant.

• General permission for the repatriation of sale proceeds of property is not available for

citizens of Bangladesh, Pakistan, China, Sri Lanka, Afghanistan and Iran. Such individuals

will have to get a specific approval from the RBI.



M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.











Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L








M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.




19

20








Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L








M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.











Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L








M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.




A

Allotted Land- Land that the government has allotted to Indians in

a ratio of 40, 80 and 160 acres.

Allottee- A person who owns an undivided interest in a parcel of allotted land.

Acre - A measurement of a land/unit that is proportionate to 43560 square feet.

Agent- An agent is a person who has the authority or the license to act for or

represent the principal.

Addendum- Changes or additions made to a contract.

Affordable housing - refers to housing units that can be afforded by people

whose income is below the prescribed household income.

Amenities- Features and facilities offered by builders that increases the value of

your property.

Appreciation- The value of your property increases as a result of the change in

market conditions or other economic/social factors.

Asset- A property of certain monetary value that can be owned by an individual

or a firm.

Asking price- Price of a property that is stated by the seller.

GLOSSARY

21

22








Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L








M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.











Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L








M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.




23

24








Vaastu compliant.









part of the plot.









move towards south.






bring poverty.





house.


house.


the flow of energy.






room.









of the house.



these rooms.



be avoided.






by the daughters.





















B




brokerage fee.













rentals.



for sale.




C












property.

D







E





EMIs.




F




your loan term.


of the lease term.




of a farm.




G





are included too.





H




as a household





I







J



K



L








M












O






or an asset.


carried out.


P






personal property.







R













good condition.










home.

S










has to be built on.


T


through lease.





developments.






rural areas.



U







V







and space.




at the right time.


W



Y



Z





LEGAL GLOSSARY A



by law.



existing mortgage.











zero.







B

















C


E



P



figure


R





S



compulsorily.




Date post:	17-Jul-2016
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