Knowledge Center

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Buyer’s FAQ’s

How to choose a Property
Anybody wishing to book a flat with a developer / promoter in India is expected to keep in mind following few basic points before deciding to book a flat on ownership basis.

About the developer / promoter
The reputation of the promoter / developer
The number of buildings/projects that the developer has completed in the past.
The quality of the construction in respect of buildings completed by the developer/promoter
The financial standing of the developer/promoter
Adequacy of the technical staff employed with the developer
His past dealings with the customers
How are his past dealings with the customers?
About the title deeds
The flat purchaser should be shown the relevant documents regarding title of plot on which the building is proposed to be constructed
The title certificate should be from a reputed Solicitor / Advocate attached to the agreement
The developer should have annexed the description of land in detail in the form of schedule in the agreement
All information regarding the encumbrances should be brought out clearly
The extract of property register card or other revenue record of the land/plot on which the flats are going to be constructed should be attached to the agreement for sale.
Inspection of Plans/Drawings
The developer should have got the approval of plans / drawings from the Municipal Authorities / Local Authority
The developer should have shown to the flat purchaser the approved plans/drawings to the flat purchaser
The developer should show to the flat purchaser the copy of commencement certificate (C.C.) and Intimation of disapproval (I.O.D.)
Area, number of flat etc.
The serial number of flat, floor at which it is located, name of building/wing should be distinctly indicated in the body of agreement
The carpet area/built-up area of flat should be distinctly indicated in the body of agreement?
The dimensioned floor plan marking the subject flat should be annexed to the agreement
The plan referred to in (iii) above should be duly signed by developer at the time of execution of the agreement.
Nature, extent and description of common areas and facilities etc.
The agreement for sale should describe distinctly the common areas and facilities (such as entrance hall, foyer of building, compound wall etc.) and limited common areas and facilities (landing in front of staircase etc.), percentage/interest of flat purchaser in common areas and limited common areas/facilities.
Mode of payment
The mode of payment of installments should be distinctly mentioned in the agreement for sale
Out goings
The developer should mention in the agreement the amounts payable by flat purchaser on taking possession in respect of legal charges, share money, application entrance fee of society, charges for formation and registration of the society and proportionate share of taxes and other charges
Stamp duty and registration
The flat purchaser should be aware about the quantum of stamp duty payable by him at the time of execution of agreement
The flat purchaser should be aware that the registration of agreement in respect of flat purchased from the developer is compulsory
The flat purchaser should be aware of the amount of registration charges payable by him
The flat purchaser should be aware of the fact that the time limit for registering agreement for sale is 4 months from the date of its execution.
Form No. 37-I
Filing of form no. 37-I under chapter XX-C of Income Tax is to be filed in respect of transaction of subject flat?
If answer to i) above is in affirmative, is the flat purchaser informed about the procedure for filing form no. 37-I?
Is the flat purchaser aware of the implications of filing form no. 37-I?

NRI- FAQ’s

Who is a NRI under the provisions of Foreign Exchange Management Act?
Generally, an Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad or a person who is not resident in India for a period over 182 days is a non-resident Indian. Persons posted in U.N. organisations and officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents.
Who is a person of Indian Origin?
Generally, under the provisions of Foreign Exchange Management Act a person of Indian Origin is an individual (other than a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan) who:

At any time held an Indian passport, or
He or his father or his grandfather was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1955)
Non-resident foreign citizens of Indian Origin are treated on par with non-resident Indian citizens for the purpose of certain facilities.

Do NRIs and PIOs require permission of Reserve Bank to acquire residential/commercial property in India?
NRIs and POIs do not require permission from RBI to acquire residential / commercial premises in India (other than agricultural land/farm house/plantation property). A person resident outside India acquiring property to carry on business from India has to file with the Reserve Bank a declaration in Form IPI within ninety days from the date of acquisition of immovable property. A citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan cannot acquire immovable property without prior permission of Reserve Bank. However, he can take on lease an immovable property for not more than 5 years.
Can NRIs and PIOs sell residential/commercial premises in India without the permission of Reserve Bank?
A person resident outside India who is a citizen of India is permitted to sell immovable property in India other than agricultural/plantation/farm house to a person resident in India or to an NRI or to a PIO resident outside India. He can also gift residential or commercial property in India to a person resident in India, NRI or to a PIO resident outside India. However, he can gift or sale any agricultural land/farmhouse/plantation property only to a person resident in India who is a citizen in India. A PIO resident outside India is permitted to sell the immovable property other than agricultural land/farmhouse/plantation property to a person resident in India.