Buying or selling a piece of property is fraught with obstacles. There are so many legal issues that you need to contend with. We've compiled a list of common legal concerns that buyers and sellers may have. These have been answered by our panel of legal experts.
Should you have any further queries, you may fill the form below and submit it to us. We will try and address it personally.
FAQs: buying :: Selling :: Others ::
- What is the procedure to buy a property?
- Do all properties on sale have clear and marketable title?
- Isn’t it risky to buy property under construction?
- When buying property under construction, what should one check?
- Can a foreigner purchase property in India?
- Does a foreigner need an approval of the Reserve Bank of India to purchase a property?
- What is meant by a person resident in India?
- Can a foreigner buy agricultural property?
- Can a foreigner form a private company and buy property to conduct business in India?
- Can a foreigner lease residential property in India?
- What is the expenditure involved, besides the property price?
Q.
What is the procedure to buy property?
A. First, make your requirement and budget clear.
It is advisable to visit a property agent (showroom) to get maximum information
on properties, and ongoing rates, etc. Then, if you decide to purchase
a particular property, check its title. You may need an advocate, architect,
property valuer, surveyor, translator, etc to protect your interest. Through
a reliable property consultant the transaction could go much smoother
as they have contacts of related field.
Q. Do all
properties on sale have clear and marketable title?
A. Many of the properties you see on sale are yet to have clear and marketable
title report from advocates. Especially, if you are looking for an old
house, rarely if ever, you get a title report upfront. Most of the owners
(vendors) start title search only after getting a serious buyer. Here
in Goa, which follows Portuguese laws, sometimes a title search takes
quiet long.
Q. Isn’t
it risky to buy property under construction?
A. Sometimes yes, but if you proceed with the help of a reliable property
consultant you are safe and can also expect a better deal when the project
is in its initial stage.
Q. When buying a property under construction,
what should one check?
A. Title of land ownership, building licence, approved plan, specifications,
reputation of the builder, water and electricity connections and occupancy
certificate.
Q.
Can a foreigner purchase property in India?
A. Yes, a foreigner can purchase a property in India on condition that:
a) you become a person resident in India as per FEMA regulations and b)
the property is meant for residential use only.
Q.
Does a foreigner need approval of the Reserve Bank of India to purchase
property?
A. No. However, you will need approvals /NOC (no objection certificate)
from state government when you register the sale deed.
Q. What is
meant by a person resident in India?
A. Any person who has stayed for more than 182 days in India for a financial
year (April to March) and for uncertain period and his/her purpose /intention
of stay.
Q. Can a
foreigner buy agricultural property?
A. No. A foreigner cannot buy an agricultural property in India.
Q. Can a
foreigner form a private company and buy property to conduct business
in India?
A. Yes.
Q. Can
a foreigner lease residential property in India?
A. Yes, if the lease does not exceed five years.
Q. What
is the expenditure involved, besides the property price?
A. The expenditures involved are: Stamp duty 2 per cent, registration
fee 2 per cent, legal fee Rs15,000 onwards and agent’s fee 2 per
cent.
- What documents are needed to sell a property?
- How can I value my property?
- How do I settle with tenants on my property?
- Can I sell a property with an agreement for sale?
- Can a foreigner sell his property?
- If a foreigner, who had formed a private company, wants to wind up business, can he/she repatriate the sale proceeds?
Q.
What documents are needed to sell a property?
A. Starting with Form I & XIV, survey plan and all the title deeds.
You may also need other documents depending on the type of property and
statement of ownership. Ask reliable property consultants for their advice.
Q. How can I value
my property?
A. Government has fixed minimum property rates. To find out the actual
market value, you have to take into consideration factors such as location,
view, road access, size of property and character of the property.
Q. How do I settle
with tenants on my property?
A. Each tenant is entitled for 300 sq metres or a value thereof.
Q. Can I sell a property
with an agreement for sale?
A. Yes. However, the owner has to be present at the time of sale deed
as you will be a confirming party.
Q. Can a foreigner
sell his property?
A. Yes. If you purchased under FERA, you will need permission from Reserve
Bank of India and if you purchased under FEMA you need permission from
state authorities.
Q. If a foreigner,
who had formed a private company, wants to wind up business, can he/she
repatriate the sale proceeds?
A. Yes, but you need prior approval from the Reserve Bank of India.
Q.
Why does the price of a property differ
from agent to agent?
A. Price depends on how much an agent wants to earn. Utilize services
of an agent who takes two per cent commission and does not pass on any
hidden, extra cost.
Q. Which transactions
attract stamp duty?
A. Transactions that attract stamp duty are: power of attorney, and all
deeds and agreements.
Q. What is the difference
between a built-up area, super built-up area and carpet area?
A. A built-up area includes walls, a super built-up area includes built-up
area plus common area, lobby, stairs, lift, etc and the carpet area does
not include walls.
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