General Real Estate FAQs
- What is the process of buying property in India?
- Buying property involves several steps, including finding the right property, conducting due diligence, getting a loan (if applicable), signing the agreement, paying stamp duty and registration fees, and registering the property with the local authorities.
- What documents do I need to check before buying a property?
- Important documents include the Sale Deed, Title Deed, Encumbrance Certificate, Approved Building Plan, NOCs from local authorities, and RERA registration (if applicable). Always verify the authenticity of these documents.
- What is RERA and why is it important?
- The Real Estate (Regulation and Development) Act (RERA) is a law aimed at protecting the rights of homebuyers and ensuring transparency in property transactions. It mandates builders and developers to register their projects with RERA before advertising or selling properties.
- How do I check if a property has legal issues?
- You can check the property’s legal status by verifying the Title Deed, reviewing the Encumbrance Certificate, and ensuring there are no disputes or pending dues related to the property. It’s advisable to consult a legal expert to ensure everything is in order.
- How much stamp duty and registration charges should I expect to pay when purchasing a property?
- Stamp duty varies by state and is calculated as a percentage of the property’s sale price or the market value, whichever is higher. Registration fees are generally a small percentage of the property’s sale value. It’s important to check the local state regulations for the exact fees.
- What is the difference between carpet area, built-up area, and super built-up area?
- Carpet area is the actual usable area inside the house. Built-up area includes the carpet area plus the thickness of walls and other areas like balconies. Super built-up area includes the built-up area along with the share of common areas like the lobby, staircase, etc.
- Can foreigners buy property in India?
- Yes, foreigners can buy property in India, but only if they meet certain conditions. They must be citizens of India or Persons of Indian Origin (PIO), or they should have lived in India for more than 182 days in the preceding year.
- How do I get a home loan in India?
- To apply for a home loan, you need to approach banks or financial institutions, provide documents such as income proof, credit score, property documents, etc. The bank will assess your eligibility and offer a loan based on factors like your income, age, and credit history.
- What is the difference between a ready-to-move-in property and an under-construction property?
- A ready-to-move-in property is one that is fully completed and available for immediate possession. An under-construction property is still in the development phase and may have a waiting period for possession.
- How do I sell my property?
- To sell your property, you need to ensure that you have clear legal title and documentation. You will need to advertise the property, negotiate with potential buyers, and sign a sale agreement. The transaction must be registered with the local authorities for it to be legally valid.
Buying Property FAQs
- How do I determine if a property is a good investment?
- A good property investment should have factors like location, future infrastructure developments, proximity to schools, hospitals, transport, and employment hubs. You should also consider the potential for price appreciation and rental yields.
- What is the difference between freehold and leasehold property?
- Freehold property means you own the land and the building on it, whereas leasehold property means you own the property for a specified period, after which it returns to the landowner.
- What is the best time to buy property in India?
- Property prices tend to be lower during the monsoon season (June to September), while some buyers prefer to buy during the festival season (October to December) when developers offer discounts and deals.
- Can I buy property on behalf of someone else?
- Yes, you can buy property on behalf of someone else as their Power of Attorney holder, but the original owner’s consent is necessary, and the proper documents must be signed.
- What is a property title?
- Property title refers to the legal ownership of a property. A clear title means that the seller is the rightful owner of the property with no encumbrances or legal disputes.
Selling Property FAQs
- What is the process of selling a property in India?
- The process involves getting a valuation of the property, gathering legal documents, finding a buyer, signing a Sale Agreement, and registering the transaction at the local sub-registrar office.
- How do I calculate the sale price of my property?
- The sale price can be based on the market value, considering factors like location, property size, condition, amenities, and demand. You can also consult a professional property appraiser or real estate agent to help determine the price.
- Do I have to pay capital gains tax when selling a property?
- Yes, capital gains tax applies to property sales. Short-term capital gains (if the property is sold within 2 years) are taxed at 30%, while long-term capital gains (if sold after 2 years) are taxed at 20% after indexation.
- What are the legal formalities for selling a property?
- You will need to have a clear Title Deed, the Sale Agreement signed, and the property must be registered in your name. You’ll also need to pay any outstanding property taxes before completing the sale.
Investment FAQs
- What is the return on investment (ROI) in real estate?
- ROI in real estate depends on factors like property location, type of property, rental income, and capital appreciation. Typically, ROI for rental properties ranges between 3-5%, while capital appreciation can vary.
- Should I invest in residential or commercial real estate?
- Residential real estate is more suited for long-term capital appreciation, while commercial real estate generally offers better rental yields. Your choice should depend on your investment goals, risk appetite, and the market conditions in your area.
- Is real estate a good long-term investment in India?
- Yes, real estate in India has historically been a good long-term investment due to increasing urbanization, demand for housing, and infrastructure development.
- How can I finance a real estate investment in India?
- You can finance real estate investments through personal savings, home loans, or by pooling resources with other investors. It’s important to assess your financial situation and the potential returns on your investment before making a decision.
Additional FAQs
- How do I know if the builder is reputable?
- Check if the builder is RERA registered, has delivered projects on time in the past, and has a good track record of customer satisfaction. You can also look for reviews and feedback from previous buyers.
- What is the impact of GST on property purchases?
- GST applies to under-construction properties and is currently set at 5% for residential properties and 18% for commercial properties. It’s not applicable to ready-to-move-in properties.
- Can I change the ownership of a property without selling it?
- Yes, you can transfer property ownership through a gift deed or by adding someone as a co-owner, but you’ll need to follow the necessary legal procedures and registration requirements.