FAQ

What are the Taxes on Property Purchase (Residential)?

 Stamp duty – 7% on the flat cost for ready as well as under-construction property

• Even if one buys a resale or investor flat, stamp duty is payable, however buying a flat within a year (only if 1st sale after the developer sale) from the previous stamp duty date can give the benefit of saving the stamp duty, with around 1% of flat cost deduction as fees

• GST – 7% on the flat cost of under construction project

• GST is not applicable on ready-to-move properties (having OC)

• GST is chargeable only once on a flat on an under-construction property. If it is an investor flat or resale flat which is registered then GST is not paid again but only once.

• Registration is 1% of flat cost

• TDS of 1% is to be deducted for a property which has a value above 50 lakhs

• Property tax is payable during the time of possession.

Can someone else register my Flat?

 Only if the purchaser’s power of attorney is given. There are two types of POA 

• General, where in the power and rights are general 

• Specific, where only a specific power is given

 How do I save my Capital gains of property for long-term capital gain?

 If you sell your residential property then you will have to buy a new property either before a year of sale or two years post sale. Also, the new project construction should be completed 3 years from the date of purchase of the new property. You can also invest up to 50 Lakhs in government bonds. You can approach Urban Space Realty for any further queries.

 What are the different forms of Carpet area ?

RERA carpet is the entire area inside your property including the internal walls (wall between two bedrooms), however the exterior walls are not part of the area. As per the new rules, all the developers must sell the property under RERA norms. 

• Built-up carpet usually includes the internal & external walls too

• Super built-up carpet area includes the common premises like the lobby, elevator etc. In proportion to your space carpet area is the space in your house excluding both, internal as well as external walls.

Please note: As per the RERA act now it is compulsory to charge and deal in RERA carpet only.

 What documents are needed before taking possession or when buying a resale property?

• Title deed (in case of resale)

• Plan approval

• No dues of the seller (in case of resale)

• Original agreement & chain of agreements

• Share certificate (if society)

• Possession letter

• NOC from developer or society (as applicable)

• All proof of past payment receipt of electricity bill, property tax etc (if resale)

• Stamp duty & registration receipt (original)

Note: Agreement if original or not can be verified by sub registrar’s office

 What technical details should I have a note of before buying an under-construction property?

• CC – commencement certificate, which shows till where (on which floor) the developer is allowed to construct

• Approved plan (KDMC plan)

• OC – occupancy certificate (if applicable), OC comes once the building is complete and ready or almost ready for possession

• Possession date: you can check it on the RERA website

• Legal cases if any, can be checked on the RERA website

What do I do if the seller does not have a chain of agreement?

• Try to find it in the registrar office

• File an FIR

• Give public notice for claiming rights, if any

Note: these things will be assisted by the loan department team from where you’ll be taking a loan. Also, advice to take a minimal loan just to make sure the property’s title is clear and also helps in certain tax benefits.

 What if I want to sell a property but there is a loan on it ?

 It is possible, the new buyer can take the loan from the same bank, which makes it more easy since the bank do not have to release the documents. Even if the new buyer is applying at a different bank, it does not matter. If the new buyer wants to repay in one go, that is also possible, the new buyer can pay to the bank and release the papers.

 What is the difference between freehold property and leasehold property?

 In freehold property, the legal ownership belongs to the owner (one who has purchased the flat) whereas in leasehold land the ownership remains with the local authority or the government. Typically the lease period varies from 30-99 years but it does not prevent the purchaser from selling or lease the flat. The lease also renews normally post the stipulated period

 Is there an issue with buying a property that is on Collector land?

 Collector land is also a leasehold land for around 99 years. There is no such issue when buying a property on collector land, it is just that you need a collector’s NOC when you plan to sell, rent or mortgage it. There is also a transfer fee when one plans to sell the property which is on Collector land. Though now collector land in Maharashtra can also be converted to freehold land by paying some premiums.