Frequenty Asked Questions

What do you mean by earthquake resistant structure?
Earthquake-resistant construction, the fabrication of a building or structure that is able to withstand the sudden ground shaking that is characteristic of earthquakes, thereby minimizing structural damage and human deaths and injuries.

What are fire staircases?
A fire escape is a special kind of emergency exit, usually mounted to the outside of a building or occasionally inside but separate from the main areas of the building. It provides a method of escape in the event of a fire or other emergency that makes the stairwells inside a building inaccessible.

What is a refuge area?
A refuge area can be defined as an area where people can opt for shelter if a fire breaks out. The real estate builder sells these particular areas to the buyers, who, quite often, illegally use these pieces of land as part of their apartments. The building may be residential or commercial.

What constitutes conclusion of sale of a property?
An agreement of sale, coupled with actual possession of the property would be considered as a conclusion of the sale. Usually, the entire amount is paid at the time of handing over possession.

Encumbrance certificate?
An encumbrance certificate is among the many documents that home buyers would find most crucial, to complete their purchase.

What is CC?
Completion Certificate is issued by the concerned authority (usually the municipal corporation) when the construction meets the criteria set by the local authorities. Without a CC, the construction is considered illegal.

What is OC?
OC ensures that the building has satisfied all the local laws and building norms, and is safe to occupy. It serves as the final pass certificate of a building or a project.

What does market value of the property mean?
Market value refers to the estimated amount that is expected to be fetched on the property as per the prevailing market conditions.

Does the property have to be insured?
Yes, you will have to ensure that your property is duly and properly insured for fire and other appropriate hazards during the pendency of the loan. You will also have to produce evidence thereof to Insurance Company, each year and/or whenever called upon to do so. Insurance company should be the beneficiary of the insurance policy.

What is house renovation loan?
It is a loan for renovating (without altering the structure/carpet area) your home in ways like tiling, flooring, internal / external plaster and painting etc.

What is a Carpet Area?
As per Real Estate (Regulation and Development) Act, 2016, “Carpet Area” means 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 Stamp Duty?
Stamp Duty is the tax paid for the legal recognition of property. It is paid by the home buyers. You can claim tax incentives of up to Rs 1.5 lakh on stamp duty and registration charges on a new property purchase or construction of a house. However, these benefits are available for only one self-occupied property.

How are maintenance charges calculated?
The basis for the calculation of maintenance charge is dependent on the actual area owned by the individual.

GST rates on property purchase?
Buyers of under-construction flats, apartments, and bungalows pay 1% GST for affordable housing and 5% GST for non-affordable housing.

What are the charges to be paid while gifting a property?
When a gift of property is made, a gift deed needs to be made by a lawyer. Stamp duty on the market value of the property also needs to be paid, as well as the necessary registration charges.

Why is it necessary to register an agreement for sale?
The Registration Act, 1908, the Transfer of Property Act, 1882 and the Real Estate (Regulation and Development) Act, 2016 mandates the registration of an agreement for sale of an immovable property. By registering the agreement for sale of an immovable property, it becomes a permanent public record. Further, a person is considered as the legal owner of an immovable property only after he gets such property registered in his name.

Why cooperative housing society do collects sinking fund?
Co-operative Housing Societies usually have a legal compulsion to collect a Sinking Fund. This fund is implied so that, just in case the building needs to be repaired or reconstructed in the future, society has sufficient funds to carry out the work. The General Body of the society then decides the amount that is to be contributed-it should be at least ¼ per cent per annum of the cost of each apartment, excluding the value of the land. Eg. To carry out reconstruction, repairs, structural additions or alterations to the building as the architect thinks is required and certifies.

PMAY?
Pradhan Mantri Awas Yojana (Urban), PMAY this scheme is primarily aimed at providing housing for all. Therefore, understandably, all those who already own a home or any of their family members own a home, are kept out of the benefits of PMAY.

What exactly is ancestral property?
An ancestral property is an undivided property, in which four generations of a single family have their share. Once divided among the stakeholders, an ancestral property would cease to be an ancestral property, and turn into a self-acquired property.