Every investor automatically becomes a member of the Magnolia Club just a stone's through away and across the wall from the Eagleton Golf Club.

The project is approved by Bangalore - Mysore Infrastructure Corridor Area Planning Authority (BMICAPA) vide approval no
dated 08-11-2005.
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Frequently Asked Questions: [FAQs]

Answers to all your queries

At Lasya Developers we also furnish information and answers to all and any of your Frequently Asked Questions (FAQs) concerning about Property Registration, Stamp duty, Legal, Tax, Home Loans, Valuation etc. Whenever you would want to buy Property / Lands in India, everyone will come across many doubts / clarifications pertaining to land purchase, before & after.

We try to give below some answers to most questions any buyer or investor might be having in their minds & would be searching for answers. Hope this will be a good reference to all such dear friends.

Click here to know about BMICAPA


Q:   What are the Registration Fees?

A:   Registration Fees are charges taken by the Registration Authorities to maintain the documents.

The registration fee in case of the document pertaining to land or site in our property for sale and conveyance is Rs. 100/- per sq. ft (as per Govt. Guide line value). It comes to approximately 10.40 % (of the total plot cost @ Rs. 100/- per sq. ft as Market value).

Q:   What are the pre-requisite for a document to be registered in time?

A:   The following are the pre-requisites for registration of a document:-

For Lands / sites:

   Stamp Duty receipt or valuation that the stamp duty has been paid according to the market value of the property
   Khata and up to date Tax-paid receipt
   Up to date Encumbrance certificate
   Conversion orders and NOC certificates from relevant Govt. authorities
   Approval from ‘Competent Govt. Authorities’
   Copy of Parent sale deed / prior sale deeds
   Paani and RTC copies for the property
   Execution by the parties in front of Sub-registrar
   Receipt showing proper registration fees paid.

For Flats:

   Stamp Duty receipt or valuation that the stamp duty has been paid according to the market value of the property
   Income Tax Clearance Certificate u/s 230 is to be attached where required (not necessary after 1.6.2001
   N.O.C. of Appropriate Authority in Form 37-I under the Income Tax Act where applicable
   N.O.C. under Urban Land Ceiling Act
   Execution by the parties in front of Sub-registrar
   Receipt showing proper registration fees paid.
   Two copies of the on specific ledger paper with specific butter paper in between pages.
   Document properly filed.

If the above mentioned documents are not available or procedure not followed at the time of registration then the Registration Authorities will keep the documents pending.

Q:   When should a document be registered?

A:   Every document other than a Will should be presented for the registration within four months from the date of its execution. But there is no period fixed within which the registration must be completed.

Q:   What are the advantages of getting a document registered?

A:   People tend to avoid getting their sale-deeds registered to save money on Stamp Duty.

For years Real Estate transactions in India are like an iceberg - there is much more hidden beneath the surface than is visible above. In most property transactions that there is a difference between the total price paid while purchasing a property and the amount mentioned in the agreement in most cases is common knowledge.

The price mentioned in the agreement is termed as the ‘white’ portion of the transaction, the gap, which can range anywhere between 20 - 60 per cent of the total amount is popularly known as ‘black’ component. While this gap has been an integral aspect of property transactions in India for years, the situation is changing in many cities, albeit gradually.

And the reasons are not difficult to understand and besides moral reasons economically it makes sense to undertake above the board transactions

Firstly the “Black” portion decreases the buyer’s capacity to borrow. This is increasingly becoming important. Today the market (specially the residential market) is being driven by end users financed by housing finance companies. Thus if a property costs Rs. 10 Lakhs and if a seller insists on 30% black, the margin money buyer needs to arrange up front is Rs. 3.00 lakhs (Rs 3 lakhs being the black component) + 15% most HFCs demand the buyer put in. This in a complete white transaction it would be Rs. 3 lakhs + 15% of the property cost.

Secondly the market is increasingly becoming transparent. If a buyer is entering into a black transaction, he is assuming five years down the line when he decided to sell the property the practice will still be prevalent. If at that point of time the buyer can only undertake a “white” transaction he will need to pay a higher capital gain tax. Let us assume a buyer purchases a property for Rs 20 Lakhs (15 lakhs in “white” + 5 lakhs in “black”). If he sells the property for Rs 25 lakhs he will need to pay capital gains on Rs 10 lakhs.

Thirdly it is easier to reverse a white transaction should a problem arise whereby a buyer can't go ahead with the deal. While dealing in cash there will most likely be little record of the black transaction.

A huge undeclared amount can get the taxmen sniffing at your door. There have been several instances, where the Income Tax Department detected a discrepancy between the figures mentioned and the market rate prevailing in the area. In some cases where the gap was too obvious to be missed, they dealt out the worst possible penalty - taking over the property after paying the agreement price. In this situation, the buyer has the option of either admitting to having deliberately quoted a lower price in the agreement, which quite frankly is no option at all.

Q:   How can a document be registered after the lapse of four months?

A:   A ''Deed of confirmation'' will have to be prepared, signed and attached to the original Conveyance Deed


Q:   Legal Checklist for buying property

A:   The checklist for buying property:

   Finalizing terms and conditions of a particular deed.
   Investigation of the title deeds. Abstract of title is to be prepared on the basis of specific information and details of the       property.
   Examination and investigation of marketability of the title.
   Procuring the required approvals, consents, permission, sanctions, no objection certificates etc. from various competent       authorities like the local Municipality / BDA / BMRDA / BMICPA / BIAPPA etc.
   Providing the duration for the compliance of various terms and conditions mentioned in the contract.
   Ensuring payment and discharge of encumbrances that are to be cleared before sale
   Acquiring possession of the property and title deeds.
   Completion of the transaction of sale by execution and registration of the deed

Q:   Legal Checklist for selling property

A:   The checklist for selling property is as follows:

   Finalizing the terms and conditions of the deed
   Providing the duration for compliance of various terms and conditions mentioned in the contract;
   Procuring the consent, permission, sanction, no objection certificate of:
   the society if applicable
   the income tax authority if applicable
   the Urban Land Ceiling authorities if applicable
   the Municipality if applicable
   any other authority, if applicable
   Getting it stamped by paying applicable stamp duty
   Not handing over the title deeds and possession until the payment of consideration.
   Engrossing the Deed
   Registering the Deed


Q:   What is Stamp Duty?

A:   It is a type of tax collected by the government. It is payable on instruments and not on transaction. Instruments include every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of exchange, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt.

Q:   Who is liable to pay stamp duty?

A:   Generally, the purchaser is liable to pay stamp duty. But if there is any contract to the contrary then the stamp duty will be paid according to the terms of the contract e.g. if there is a contract stating that the stamp duty will be paid by the seller or it will be divided equally then the stamp duty will be paid as per the terms of his contract.

Q:   Why Stamp Duty should be paid?

A:   Stamp Duty paid instrument / document is considered proper and legal instrument / document and as such gets evidentiary value and is admitted as evidence in courts. The instruments / documents not properly stamped are not admitted in evidence by the court. Instruments include every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of exchange, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt.

Q:   On what value is the stamp duty payable?

A:   The Stamp duty is ascertained on the market value of the property as ascertained by the stamp duty authorities. The consideration or price mentioned in the document is not relevant. The parties entering into the document will have to apply for adjudication of stamp duty. The stamp authority will ascertain the stamp duty on the basis of the market value of the property. This value is recognized on the basis of a ''Ready Recknor'', which gives the per sq. mtr. value of each zone at the concerned Sub-Registrar office. But the ready-recknor is not conclusive and it is merely a guideline for the stamp authority. The market value of the flat will depend on the location / area / locality, the amenities available etc.

Q:   What are the consequences of delay in Stamp Duty?

A:   If the stamp duty is not paid on time it attracts penalty at the rate of 2% per month of the stamp duty that has to be paid. But it cannot exceed twice the amount of the stamp duty that has to be paid. Besides the penalty amount the defaulter will have to pay the amount of the stamp duty.

Q:   What are the precautions one should take while purchasing a property

A:   A purchaser must take following precautions while purchasing a property:

Examine title of the property by investigating the source from which the seller acquired the property. This search can be conducted at the sub-registrar’s office. It is advisable to investigate the title for the past thirteen years or up to the original owner whichever is later. These are called "link documents".

One must check if the appropriate stamp duty has been paid on all these documents. If the property is situated in a cooperative society the original share certificate should be examined.

All documents examined, should be original to ensure that the seller has a clear title and that there are no encumbrances on the property such as lien or mortgage or any other charge. Non-availability of any original document should be taken seriously.

For flats: If the flat is in a co-operative society, it is advisable to get a No-Objection Certificate even though it is no longer mandatory. By way of the NOC it will be clear if any dues of the society are pending and the purchaser can avoid future problems. It is also advisable to see the latest society bill and the latest electricity bill; the Income Tax Certificate under section 230A is not required any more, to ensure that the seller has discharged all Income Tax liabilities; the seller should obtain the Income Tax Clearance Certificate under section 281 of the Income Tax Act, 1961

Q:   What is the Stamp Duty payable in case of exchange of properties?

A:   Stamp Duty is payable only on the value of that property, whose value is maximum among the two properties exchanged.


Q:   What is Valuation?

A:   A valuation process is undertaken to ascertain the fair market value of a property. A scientific valuation goes beyond the parameters of the demand and supply forces that dominate the real estate market. Other factors that form vital inputs for a scientific valuation would be maintenance, quality of construction, location, the infrastructure of the area, the nature of the property, - whether freehold (or leasehold, if leasehold then the period of lease etc. in case of flats). A valuator would normally adopt two or three different techniques separately to determine the property value and then compare the results to arrive at the correct value.

Q:   What constitutes conclusion of the sale?

A:   The transfer of a property is coupled when you have an ‘agreement of sale’ coupled with actual possession. Generally, in all cases the entire amount is paid simultaneously with handing over of physical possession. If you give possession after having entered a sale agreement, you would be liable to be taxed even if you have not received the full consideration.


Q:   Who can apply for a Home Loan?

A:   Normally Housing Finance Companies give home loans for property located in India to any Indian Resident, Non Resident Indian and a Person of Indian Origin above 21 years of age at loan origination and 65 years or below at loan maturity, who is employed or self-employed, with a regular source of income.

Q:   How Do Housing Finance Companies Calculate eligibility?

A:   Housing Finance Companies decides on loan eligibility on the basis of repayment capacity. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history.

Q:   Who can be a co - applicant?

A:   Every HFC insists on all co-owners of the property being co-applicants to the loan. In case of acceptable relationships as stipulated by the HFC, the income of the co-applicant can be included in arriving at loan eligibilities. In case of any other relative being a co-applicant to the property, the HFC would not include the income of the co-applicant for the calculation of loan eligibility.

Q:   How to select a Housing Finance Company?

A:   With so many banks and home finance companies competing with each other to give you loans with interest rates figures ranging from 12 to 15% per year being tossed around its easy to get confused while choosing a home Loan. The following are a few tips on how to select the home loan most suited to your need.

Minimum & Maximum Loan amount - The minimum loan amount offered by a financier is important to find out if the financier can finance the amount you are looking for. Moreover most HFCs have a upper limit on the amount that they would finance.

Interest Rates: Don't worry if you don't understand the complexities of interest rate calculation, how daily, monthly or yearly rest work. Other factors remaining the same for a given tenure the loan with the lowest EMI is the best.

Other Costs: Other than EMI, look at the administration fee, processing fee and any other costs. Other things remaining the same it makes sense to go for Housing Loan where the processing fee (or fees by other name) is lowest.

Does the HFC offer home loans without pre- payment penalty (or a penalty for repaying loan before it is due), So that you can repay your loans earlier, besides switch loans if the interest regime suits you? This is especially true if you are going for fixed rate loan as compared to a floating rate loan. A Fixed rate of interest is one where the rate charged by the HFC on the loan is constant over the tenure of the loan. The interest rate on your Floating Rate Loan is linked to Retail Prime Lending Rate.

Whether the financier is offering a loan product to suit your requirements be it for a salaried person, NRI or for the purchase of land, etc.

Does the HFC require a guarantor? Some HFCs insist on a Personal Guarantor. You need to check this out if you have any reservations about providing a guarantor. Tenor Range (Loan Period) - Whether the financier is offering the tenure of loan that you are looking out for? Normally HFCs offer loans ranging form 5-20 years, with some going up to 30 years. For NRIs the maximum tenure could be 10 years in some cases.

Requirement of Co-owner & Co-applicant - If you intend to buy your house along with a co - owner, or if you plan to co-apply for the loan you will have to check whether the HFCS accepts the relationship between you and the co - owner.

Documentation Required - The type of credit documents that HFCs insist before approving your loan would differ from one HFCS to another. Kindly go through the credit documents comparator before you decide on your HFCS.

Normally the documentation required for a salaried person include the latest salary slip showing statutory deductions, Form 16, Proof of age, Proof of residence etc. For Self-employed person these might include income proof for the previous two-three years, certified by a Chartered Accountant, audited Profit & Loss Account and Balance Sheet for the previous two-three years, besides proof of age and residence.

The above mentioned are some of the parameters that you will need consider before you zero in on the perfect home loan for your self. Getting a home loan which would offer you the best in all of the above parameters might not be possible. Thus you would need to identify which of the parameters are most important for you and take a decision accordingly.


Q:   Is Stamp Duty payable on transfer of flat from husband to wife or children and vice-versa?

A:   Yes. Stamp Duty will be same as applicable to conveyance. However 10% rebate could be expected while valuation, at the discretion of valuation officer.

Q:   Is there any way where the value of the stamp duty could be reduced for flats?

A:   The deductions which can be requested are:

   Up to 50% of market value in case of buildings which are 40 years old. (In practice only 30% of the deduction is given).       One can also ask for such deductions (in proportion) if the building is little less older than 40 years.
   Non-road facing
   Fourth floor upwards and without lift.
   Slum land or Kardi land

Q:   Where are documents related to immovable property registered?

A:   A document is registered with a sub-registrar of a district in which the whole or some portion of the immovable property is situated. A document registered with a sub-registrar who does not have jurisdiction is null and void.

Q:   What are the documents of which registration is compulsory under the Indian Registration Act, 1908?

A:   The following documents are required to be registered compulsorily under the Indian Registration Act, 1908:

   Instrument of gift of immovable property;
   Other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in       future or  in present, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and       upwards to or in immovable property.
   Non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of creation,       declaration, assignment, limitation or extinction of any such right, title or interest ;
   Lease of immovable property from year to year or for any term exceeding one year or reserving a yearly rent. But the       State Government may publish an order in official gazette exempting any district or a part of a district or a lease that does       not  exceed the term of five years and the annual rent of which does no exceed Rs. 50/- .
   Non-testamentary instruments transferring or assigning any decree or order of a court or any award when such decree or       order or award purports or operates to create, declare assign, limit or extinguish, whether in future or in present, any right,       title or interest, whether vested or contingent, of the value of one hundred rupees and upwards to or in immovable       property.
   Authorities to adopt a son that is not conferred by a will.

The important thing that should be kept in mind is that the Registration Act deals with only the documents and not transactions. In Abdullah Sahib v. Rahamatullah Sahib, AIR 1960 Mad 274 it was held that the registration is obligatory when the transaction is reduced to writing. It was held in Rosan Singh v. Zail Singh AIR 1988 SC 881 that a bare agreement to divide properties amongst the co-sharers would not require registration, but if the writing itself effects the division, it must be registered.

Q:   What property can and what property can not be transferred according to the Transfer of Property Act?

A:   Section 6 of the Act provides that property of any kind may be transferred, except as otherwise provided by the Act or by any other law for the time being in force.

Thus section 6 provides that property of any kind may be transferred. However it has two exceptions i.e.

Whenever it is provided otherwise

   By this Act itself or
   By any other Act for the time being in force

The section further expressly provides ten kinds of property, which cannot be transferred.

   The chance of an heir-apparent succeeding to an estate, the chance of a relation obtaining legacy on the death of the
      kinsman, or any other mere possibility of a like nature, can not be transferred.
   A mere right of re-entry for breach of a condition subsequent can not be transferred to anyone except the owner of the       property affected thereby.
   An easement can not be transferred apart from the dominant heritage.
   An interest in the property restricted in its enjoyment to the owner personally cannot be transferred.
   A right to future maintenance, in whatsoever manner arising, secured or determined, cannot be transferred.
   A mere right to sue cannot be transferred.
   A public office cannot be transferred, nor can the salary of the public officer.
   The stipends allowed to military, naval, air force and civil pensioners of the government and political pensioners could not       be transferred.
   No transfer can be made:
      • In so far as it is opposed to the nature of the interest affected thereby, or
      • For an unlawful object or consideration.
      • To a person legally disqualified to be a transferee.

The words ''Property of any kind'' appearing in the above section, indicate that transferability of the property is the general rule and the right to property includes the right to transfer the property to another person. The onus of proof is on the person alleging that any kind of property is not transferable. However there are some exceptions to the above rule.

Q:   Would it be correct to say that on the default in payment on the due date, the sale becomes complete / absolute, mortgage becomes irredeemable because the contract says so?

A:   No. It would be a totally wrong legal inference. A mortgage being a security for the debt, the right of redemption continues although the mortgagor fails to pay the debt by the due date. This right of redemption continues unless it has been extinguished by the act of parties or by a decree of Court. "Act of parties" refers to some transaction subsequent to the mortgage and standing apart from the mortgage transaction. In a mortgage by conditional sale the right of redemption is not extinguished at the expiry of the period. A clause in a mortgage deed that in default of payment by the stipulated date the mortgage should operate as a sale, is not the "act of parties". This is because in India, right to redeem being a statutory right continues to exist unless the mortgagee obtains a decree for foreclosure.

Q:   Are there any formalities or forms to be filled/filed when either the Sale Deed or transfer documents is to be executed?

A:   Yes. The following are the formalities or forms to be filled / filed:

   This depends from State to State in which the Property is situated. Every State has its set forms under the Registration       Rules that are required to be filled and filed along with and at the time of Registration of Sale Deed/Transfer Deed.
   Under the provisions of the Income Tax Act and Rules for a transaction of sale, it is now compulsory for the Purchaser and       Seller to give their Permanent Account Number and in the event of either the Seller and/ or the Purchaser would be required       to fill Form 60 of the Income-Tax Rules.
   In case of either the Purchaser or the Seller being a Non-Resident Indian, not assessed to tax in India, such a Party would       be required to file Form 60 of the Income-Tax Rules.


Q:   Are any concessions available under the income tax laws with regard to profit on sale of residential property?

A:   Concession is available by way of exemption from income tax on capital gains arising on transfer of a residential property. The exemptions are provided in Sections 54 and 54EC of the Income-tax Act (the Act). The exemption is available on re-investment of the capital gains in specified assets by the assessee.

Q:   Who is entitled to such concessions?

A:   The exemption under Section 54 of the Act is available to an assessee who is either an individual or a Hindu Undivided Family (HUF). The exemption under Section 54EC is available to any assessee.

Q:   Is there a minimum holding period for such property before transfer to be eligible for the concessions?

A:   The residential property should be a long-term capital asset. To qualify as a long-term capital asset, the residential property should be held by the assessee for a period of 36 months, prior to the date of the transfer.

Q:   What is the nature of assets in which the sale proceeds should be re-invested by the assessee to avail the exemption?

A:   Under the provisions of Section 54 of the Act, the capital gains should be re-invested in the construction or purchase of another residential property. Under the provisions of Section 54EC of the Act, the capital gains should be re-invested in 'long-term specified asset'.

For the purpose of this provision, long-term specified asset means any bond redeemable after 3 years, issued on or after 1 April 2000, by National Bank for Agriculture and Rural Development or by National Highways Authority of India.

Q:   Is there any time limit for such investments to be made?

A:   Under the provisions of Section 54 of the Act, the assessee should, within a period of one year before or 2 years after the date on which the transfer took place, have purchased or within a period of 3 years, after the date of transfer, constructed a residential house.

Under the provisions of Section 54EC of the Act, the assessee should invest the capital gains in the specified capital asset, within a period of 6 months, after the date of such a transfer.

Q:   What are the restrictions on transfer of such newly acquired or constructed property or long-term capital asset?

A:   Under Section 54 of the Act, there are no restrictions on transfer of such newly acquired or constructed property.

Under Section 54EC of the Act, where the long-term capital asset is transferred or converted into money at any time, within a period of 3 years, from the date of acquisition, the exemption stands withdrawn.

Q:   Are there any concessions in the income tax laws for investment of capital gains on transfer of any other capital asset if the gains are re-invested in a residential property? Is there any time limit for making such an investment?

A:   Under Section 54F of the Act, capital gain arising on transfer of any long-term capital (other than a residential property), would be exempt from income tax if the capital gain is re-invested in a residential property.

Under the provisions of Section 54F of the Act, the assessee should, within a period of one year before or two years, after the date on which the transfer took place, purchased, or within a period of 3 years, after the date of transfer, constructed a residential house.

The exemption under this provision would however not be available if the assessee:

   owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or
   purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the        original asset; or
  constructs any residential house, other than the new asset, within a period of 3 years after the date of transfer of the              original asset


Q:   What is meant by “settlement”? How does it differ from “gift”?

A:   Settlement is specie of or a type of gift only in certain circumstances. Transfer of Property Act does not define what is "settlement"? However, the law pertaining to the stamp duty defines it albeit with the object of levy of the stamp duty. For example, Section 2 (t) of the State Stamp Act defines "settlement", under which the "settlement" means any non-testamentary (testament means a will) disposition of moveable or immoveable property made:

   In consideration of marriage;
   For the purpose of distributing property of the settler among his family or those for whom he desires to provide or for the       purpose of providing for some person dependent on him;
   For any religious or charitable purpose

Q:   Can the gift be made of the property not in existence, i.e. of the future property?

A:   No. The subject matter of gift must be certain existing moveable or immoveable property. It could be anything such as, goods, any right, title or interest in any immovable property which exists or even an actionable claim. It must be transferable within the meaning of Sec.6 of the Transfer of Property Act. A gift of the right to management is valid. But a gift of the future revenue of the village is invalid. Release of a debt is not a gift; because it does not involve any transfer of property but merely a renunciation of a right of action.

Q:   What is the meaning of exchange according to the transfer of property Act?

A:   Section 118 of the transfer of property Act defines exchange as follows: When two persons mutually transfer the ownership of one thing for the ownership of another, neither thing or both things being money only, such a transaction is called an ''exchange''.

The definition of exchange is not limited to immovable property. Exchange is therefore not only exchanging of lands but also barter of goods. If one of the items transferred is money, the transaction is not an exchange but a sale; because the price is money only. But money in one form may be exchanged for money in another form. So also an exchange of one stamp for another is not a sale. A sale should always be for a price, but in the case of an exchange, the transfer of ownership of one thing is not one for price paid or promised, but for transfer of another thing in return. So, a transaction in which the considerations for the transfer of certain properties are shares in a limited company is an exchange.

The ownership of the one party must be exclusive of the ownership of the other, so that a partition is not an exchange. A transfer by a husband to a wife in discharge of her claim to maintenance is not an exchange, as the wife transfers no ownership in anything.

If the lessee surrenders a lease and the landlord grants him the lease of another property, the transaction is not an exchange. If both parties are not the same, there can not be an exchange.


A transfers to B a house worth RS. 1,500 and B transfers to A a field worth RS. 1,000 and RS. 500 cash. The transaction is an exchange.

Q:   If a gift is made to two or more persons of whom one or more of them does not/do not accept the same, what is the impact of such non-acceptance on the interest of the donee/s accepting the same?

A:   Under Indian Law, the presumption is that the transfer by gift to two or more persons is as the tenants-in-common i.e. each donee getting a distinct share in the property gifted. The relevant provision is contained in Section 125 of the Transfer of Property Act. Therefore, while the gift will be void only to the extent of the share of such donee who does not accept it, if the gift is made to two persons jointly and one of them does not accept it, the another one cannot take the whole.

Q:   What is “acceptance” of gift and why is it one of the essential ingredients of gift? When should the acceptance be done?

A:   Donee is not bound to accept the gift although an express acceptance by the donee is not necessary to complete the gift. It has long been settled that the acceptance of the gift by the donee is to be presumed until his dissent is signified. The use of the words "accepted by or on behalf of the donee" shows that the donee might be a person unable to express acceptance when the gift is to a minor and it may be accepted by the natural guardian on his behalf. However, it is essential that the gift is accepted during the life time of the donor and while he is still capable of giving; and, also it is essential that acceptance must be made during the lifetime of the donee, for if the donee dies before acceptance, the gift is void


Q:   What Are Carpet Area, Built-Up Area & Super Built-Up Area?

A:   Generally speaking Carpet Area is the area of the apartment/building, which does not include the area of the walls. The actual used area of an apartment/office unit/showroom etc. In simple terms, it is that area within the walls where you can actually lay a carpet. It is the super built-up area minus the thickness of the walls and the proportionate share of the common areas. Built up Area includes the area of the walls also. It also includes the carpet area, the wall thickness and the balcony. Super Built up Area includes the built up area along with the area under common spaces such as the lobby, lifts, stairs, etc. This term is therefore only applicable in the case of multi-dwelling units. The plinth area along with a share of all common areas proportionately divided amongst all unit owners makes up the Super Built-up area. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc.

This break up is extremely essential as builders can place anywhere from 65 per cent to 85 per cent of the super built area as carpet area. That means, if the quote is on 1,000 sq ft, the carpet area could be anywhere from just 650 sq ft to 850 sq ft. If this break up is not mentioned in the agreement, demand that the builder mention it in the sale deed.

Q:   What is Freehold Property?

A:   Freehold property is property for which ownership rights of Land is given to the purchaser for a price and he is not required to pay annual Lease Charges. Freehold properties can be registered and/or transferred in part/s, which is not possible in the case of Leasehold properties.

Q:   What Is Leasehold Property?

A:   Leasehold Property is property leased to a lessee for a stipulated period. The Lessee pays lease premium and annual lease amount as fixed by the Lessor. In these cases the Land ownership rights remain with the Lessor and a prior sale-permission is normally required if you plan to transfer the property.

Q:   How do you inspect a property?

A:   Before you buy a house--even if it looks perfect--it's wise to make sure everything's all right. You need to complete your home purchase with your eyes open as to the condition of the property and all its and systems. The purchase of a home is probably the largest single investment you will ever make.

You should learn as much as you can about the condition of the property and the need for any major repairs before you buy, so that you can minimize unpleasant surprises and difficulties afterwards. A close home inspection also points out the positive aspects of a home, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.

You need review the condition of the home's interior plumbing and electrical systems, the roof, walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

External Checks:

Check the life of the building. Building materials normally have a life of about 20-30 years. Reinforcement to structural supports may be required after this period has lapsed. Look for structural cracks around the foundation of the house. Proper ground slopes to carry away rainwater. Freshly painted houses may hide serious structural problems. Patches of discoloration indicate a cover up job on leaky areas. Watermarks or stains around the edges of the floor could indicate problems of water logging in the past. Watch out or poor site drainage. Homes with slopes toward the house often have more problems with water infiltration into basements. Homes on flat plates often suffer from poor site drainage, the best designs are for homes in which the water drains away in all directions

Internal Checks:

Check whether electrical circuit breakers and wires are properly matched. The service capacity of the circuit-breaker box must be large enough for the house. Check water faucets for leaks and flush all toilets to be sure of proper operation. All the electrical receptacles throughout the home need to be checked to determine whether they're wired properly. The functioning of the interior and exterior lights, ceiling fans needs to be checked too. A thorough check of all the doors and windows needs to be done to make sure they function correctly. Moreover all exterior doors should be properly sealed against weather. Above all, all locks must work properly.

Q:   How to Choose an Estate Agent?

A:   It is hard to convince homebuyers that they should put as much thought into choosing a real estate agent as choosing a home. Getting the best real estate agent is generally easier when you know how to be a good buyer.

Here are some things you should keep in mind:

Check his credentials. Get a reference if possible. Speak to a few of his past customers for references on his ability and reliability. It is always better to deal with a broker that some one you know has dealt with.

Most agents specialize by area within a city. It helps to go to the most visible broker and one with a long track record (5-7 years). The property owners normally approach him due to his higher visibility and his longer presence in the area. This increase the chances of you are getting a good deal fast. More over his knowledge of the area will ensure that he can guide you through his knowledge of property history, the owner history, rates, problem properties etc.

Avoid one-man outfits. These are of ten sub-agents. It is also better to deal through a broker who has direct access to the property owner. Choose an agent who is willing to invest time & money on your search including site visits, legal due diligence and perhaps advertising on your behalf. These services can time & money savers for you. Most importantly deal through a broker you are personally most comfortable with.

Always clarify the level of brokerage that you are willing to pay before using his services. Normally brokers charge 2 percent of the transaction amount in a sale, and one months rent in a rental transaction. But these rates are flexible depending on the amount service fee involved. While it is always important to negotiate on these, it is also important to remember that there are know free lunches.

It is also important to clearly communicate to broker what you want. Help him to locate the property you want. Moreover when it doubt ASK. For first time buyers it also helps to involve a friend who has recently bought or sold a property. During site visits, point out things which you like or don't like. If possible take notes. These will be very useful while making final decisions.

Q:   Can the member in a Co-operative Society transfer and/or deal with and/or dispose of in any manner as he wants his shares/interest in the Society?

A:   Subject to the compliance of the provisions contained in the said Act of 1960, the said Rules of 1961 and the concerned Society's Bye-laws, a member in a Housing Society is always entitled to deal with and/or dispose off in any manner otherwise permissible in law his/her share and/or interest in the Society. However, in order to maintain the co-operative character of the Society and not to allow the concentration of control in the hands of the business rivals there are certain statutory restrictions applicable to such transfer. The said restrictions are:-

   The share or interest must have been held by the Transferor for not less than one year;
   such transfer must be made first to a member or to a person whose application for membership has been accepted by the       Society;
   All liabilities of the Transferor including the dues to the Society must be fully paid and discharged.

Q:   What should a purchaser keep in mind while purchasing a flat?

A:   Some of the things a purchaser must keep in mind are: Good construction, reputed builder, sufficient water supply, car parking space, security systems, electric supply, locality, cost, local transport facilities, schools, hospitals, market, and pollution levels.




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