Frequently Asked Questions
Documents required buy/sell a resale property
Buyer should ask for the original Sale Deed, Title Deed, relevant payments & tax receipts and Encumbrance Certificate.
Who Pays The Stamp Duty
Stamp duty to the concerned authority is to be paid by the buyer
What Is the Carpet Area
Carpet area is the net usable floor area of an apartment, excluding the area covered by the external walls, areas under service shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.
What is long term and short term Capital Gains?
If the house is held for less than three years prior to its sale, it is termed as a short-term capital asset and any gain arising from the sale is treated as a short term Capital Gain. However, if the property is sold after holding it for more than three years, it is treated as a long term capital asset and the gain arising from it is called the long term Capital Gain. Such gains attract a flat exemption rate of 20%.
Do I Need a House Insurance?
House insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with furnishings and other assets in the home. Homeowners insurance also provides liability coverage against accidents in the home or on the property.
When is the sale of a property formalized?
Sale of a property is said to have been formalized if the seller has received the entire consideration amount & registration of the documents has been carried out in favor of buyer.
What If Builder Is Delaying The Possesion
A letter in writing to the builder stating your grievance. Ensure that all assurances by the builder of giving you possession on such and such date are given to you in writing on the letterhead and under the seal of the builder. If it appears that the builder will not be giving you possession in an acceptable time period then you may approach RERA for mediation.
Type of property taxe you should know about
TDS- 1% on immovable properties (except agricultural land) exceeding Rs 50 lakhs.
Stamp Duty – Depending upon state and municipal laws
Service Tax- It is a central tax paid for the services offered by the developer to you. From April 1, 2015 onwards, if the apartment is worth less than Rs 1 crore, or has a floor area less than 2000 sq ft, the service charge levied is 14% on car parking and preferential location charges (PLC) and 3.50% on the basic sale price. If the apartment is worth over Rs 1 crore, or has a floor area greater than 2000 sq ft, the service tax levied is 14% on car parking and preferential location charges (PLC) and 4.2% on the basic sale price of the flat.
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