What should a purchaser keep in mind while purchasing a residential flat?

Some important points to keep in mind while buying the flat:
Locality – Proximity to workplace, educational institutions, hospitals, shopping areas, and entertainment centers etc. Transportation from the area various pollution levels.

Quoted area of the flat i.e. Carpet, Built Up Area and super Built Up Area.

Car parking space.

Quality of construction.

Reputation of the builder or seller.

Sufficient water and electric supply, other utilities.

Cost components: price, stamp duty, registration charges, transfer fees, maintenance charges.

Appreciation of the property for resale and rental.

Any other distinguishing features or advantages of the property.

What is the difference between built up area, super built up area, and carpet area?

Carpet Area: This is the area of the apartment/building which does not include the area of the walls.

Built up Area: This includes the area of the walls also.

Super Built up Area: This 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.

What are all the important documents one should check before buying any property?

If you want to purchase a property, you have to look at the approved layout plan, approved building plan, ownership documents, carryout search, etc. Contact an advocate before you purchase a property so that he can advise you.

Who is liable to pay Stamp Duty-the buyer or the seller?

The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary. Section 30, of Bombay Stamp Act, 1958 states the liability for payment of stamp duty.

In whose name are the stamps required to be purchased?

The stamps are required to be purchased in the name of any one of the executors to the Instrument.

What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?

Market value means the price at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value whichever is higher.

Which are the instruments that attract the payment of Stamp Duty?

The instruments like Agreement to Sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty on market value of the property.

What is meant by leasehold and freehold properties?

Leasehold properties (plot/built-up) are those in which perpetual leasehold has been granted by the title paramount in favour of the lessee. In such properties, the title paramount, i.e. President of India acts through DDA, L&DO, Lease hold properties are not freely transferable. Depending upon the covenants of the lease deed, prior permission of the lessor (DDA/ L & DO) is required to transfer the property. Freehold properties are those where title paramount has conveyed the property in favour of the purchaser by conveyance/sale deed with no restriction on the right of the holder of the property to further transfer the property. Record of ownership of the freehold property can be ascertained from the office of the sub-registrar. It can be transferred by registration of sale deed.

Who is the appropriate authority for knowing the market value of the property?

The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.

What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any?

A freehold property (plot or a flat) is one where there is a whole and sole owner(s), ownership is full and unconditional (within the provisions of the laws of the land) and there is no lessor / lessee involved.

How to verify the authenticity of the various documents submitted by the seller of the house, particularly with regard to the possibility that the house has not been sold earlier to a third party?

Regarding authenticity of documents, again, you have to take the help of an advocate to verify.

Upon buying a flat from a builder in a building under construction, what are the permissions and papers that one should check with the builder, so as to ascertain the genuinity of the builder?

When you are buying a flat from a builder in a building under construction, you have to check the following:

Approved plan of the building along with the number of floors.

Ensure that the floor that you are buying is approved.

Check if the land on which the builder is building is his or he has undertaken an agreement with a landlord. If so, check the title of the land ownership with the help of an advocate.

Check the building byelaws as applicable in that area and ensure that the builder is building without any violation of front setback, side setbacks, height, etc.

Check specifications given in the agreement to sell of the sale brochure. Is he providing the same actually on the ground or not?

Check the reputation of the builder.

Ensure that urban land ceiling NOC (if applicable) has been obtained or not.

NOC from water and electricity authorities also have to be obtained.

NOC from lift authorities.