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FAQs before purchase of residential/commercial property:
Which documents are to be verified before purchase of a Flat?

Before you purchase a flat, you have to have a title and document search conducted by a competent advocate. You cannot do it yourself. You have to use the services of a competent advocate. It is a professional job to be done with professional assistance.

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.

Before you purchase a flat, you have to have a title and document search conducted by a competent advocate. You cannot do it yourself. You have to use the services of a competent advocate. It is a professional job to be done with professional assistance."

Can an Advocate get inspection of all title documents for the property?

The lawyer can be allowed to take inspection of all original documents pertaining to the property.

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.

Which documents must be compulsory registered?

The following documents are required to be registered compulsorily under the Indian Registration Act, 1908:

(a) Agreement for sale/purchase of an immovable property, needs to be registered.

(b)Instrument of trasnfer like lease, gift, mortgage, sale, assignment, etc of immovable property;

(c)Other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in future or in present, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards to or in immovable property.

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.

What Is Leasehold Property?

Leasehold Property is a property which is leased to a lessee for a stipulated period. The Lessee pays lease premium and annual lease amount as fixed and mutually agreed by the Lessor and lessee. The land ownership rights remain with the Lessor and Lessee gets right to use and enjoy the property for that particular period.

General FAQs after purchase of residential/commercial property:
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. The entire amount is paid at the time of handing over possession.

What is a Sale Deed?

Sale Deed also known as conveyance deed, is a document by which the seller transfers his right, title and interest in the property to the purchaser, who, in turn, acquires an absolute ownership of the property.

What is meant by valuation of property?

The valuation process evaluates the market value of the property. Demand and supply forces operating in the market, as well as other factors like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken into consideration before the market value is decided

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 is Stamp Duty and who is liable to pay the Stamp Duty, the purchaser or the Developer?

Stamp Duty is kind of a tax, collected by the government, and must be paid in full and on time. A stamp duty paid instrument/document is considered a proper and legal instrument/document. The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary.

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 of the property as ascertained by the stamp duty authorities on the basis of a ''Ready Reckoner'' which gives the per sq. mtr. value of each village, zone and sub-zone . The ready reckoner is normally published on 1st April of every year. The Stamp Duty is payable on the agreement value or Ready Reckoner valsue of the property, which ever is higher.

How much is the Registration Fees on sale of immovable property?

The registration fee in case of sale of immovable property is 1% of the market value or Rs 30,000, whichever is lower. There could be some additional charges for scanning of documents were the office of the Sub Registrar has been computerized.

How often does the state government issue a ready reckoner indicating market value of properties?

A ready reckoner is published on the 1st day of April every year.

What are the prerequisites for a document for sale of a flat or shop or office to be registered in Maharashtra?
The following are the prerequisites for registration of a document for sale in Maharashtra:-
  • •   Duly completed, stamped and signed instrument printed on single side only.
  • •   Receipts for payment of Stamp Duty and Registration Fees.
  • •   Property Register Card / 7x12 extract.
  • •   RERA registration number / certificate in case of sale of new property by builder.
  • •   Commencement Certificate issued by the Municipal Corporation for premises in a building under construction and Occupation Certificate for a completed building.
  • •   Property Tax Bill in case of depreciation in market value for old buildings.
  • •   Occupation certifictae in case of sale of a unit in old building.
Do I have to go personally for the registration?

It is advisable to go personally but in case it is not possible, a power of attorney can be issued to some other person. This Power of Attorney should mention all the relevant clauses and preferably be registered before the Sub Registrar.

Will someone escort us for the registration?

Yes, the POA holder of the developer is present at the member escorts our customers for registration.

When and where should a document be registered?

Every document which is required to be registered under the Registration Act, should be presented at the office of the Sub Registrar of Assurances for the registration within the prescribed time of four months from the date of its execution. A document is registered with a sub-registrar appointed by the State Government, under the Indian Registration Act, 1908.

Can a document be registered after a lapse of four months?

Yes. A document can be registered after lapse of four months with payment of penelty of wintin next four months from the date of lapse of earlier four months.

What are consequences of non-registration of a document?

An instrument, which is not registered, is inadmissible as evidence.

Is Stamp Duty payable when a flat is from a relative to other relative by way of a gift?

Yes. Stamp duty has to be paid on the gift but the rate of duty is lower. In Maharashtra trasnfer of flat via Gift Deed attracts stamp duty of 3%.

What are the consequences of delay or non-payment of Stamp Duty on an instrument?

Delay in payment of stamp duty attracts penalty at the rate of 2% per month on the amount of the stamp duty that has to be paid, up to a maximum of four times the amount of the stamp duty payable. An instrument, which is not properly stamped, is inadmissible as evidence.

What is adjudication?

In case you wish to ascertain the correct stamp duty payable on an instrument, an application can be made for to the Collector of Stamps.

What constitutes completion of the sale?

The transfer of a flat is concluded when you have an sale deed/ agreement for sale coupled with actual possession. Generally, in all cases the entire amount is paid simultaneously with the handing over of physical possession and signing of the transfer documents.

In whose name are the stamps required to be purchased?

The same needs to be purchased in the name of buyer of the property.

Is a POA revocable?
Yes, a POA can be either revocable or irrevocable, depending on what sort of a POA one has made.
Can a Power of Attorney be issued to someone else to register the document?
Yes, the same is required to be registered in the office of the Sub Registrar in the city you are staying in.
Can a Power of attorney be issued to someone else to register the document in case of being out of country?

Yes, the Power of Attorney Draft can be signed and attested by the Indian Consulate/ Indian Embassy/or local notary. Once the Power of Attorney is received in India, the same has to be submitted to the Collector of Stamps for adjudication. After the same is adjudicated the POA holder can submit the same at the time of registration of the document.

Types of Power of Attorneys?

1. Special Power of Attorney 2. General Power of Attorney. Both can be revocable or irrevocable and should confer the authority as desired by the person issuing the POA.

Is registration of a Leave and License mandatory and what are the consequences if the same is not registered?

As per Section 55 of the Maharashtra Rent Control Act, 1999 registration of Leave and License Agreement is compulsory and it is the responsibility of the landlord to ensure registration. If the same is not registered, the landlord would be prosecuted and on conviction he's subject to up to three months imprisonment or be subject to fine not exceeding Rs.5000/- or with both. Further in the absence of a Registered Agreement, the contention of the tenant, about the terms and conditions on which the premises have been given to him by the landlord shall prevail unless otherwise proved.

Is the leave and license agreement generally signed in multiples of 11 months or 12 months? Is there any stipulation of time?

Formerly leave and license agreements used to be signed in multiples of 11 months or 12 months. After The Maharashtra Rent Control Act, 1999 came into force from 1.3.2000 there is no stipulation as to whether leave and license agreement should be in multiples of 11 or 12 months, and there is no stipulation as to total time period. However, Leave and license agreement generally does not exceed three years.

What is the difference between lease and leave and license agreement?

Lease is defined under Section 105 of The Transfer of Property Act,1882 and a lease of immoveable property is a transfer of a right to enjoy such property for a certain time or in perpetuity on consideration to be rendered periodically or on specified occasions, while a license is defined in Section 52 of the Indian Easement Act,1882 and it does not create any interest in the premises in favour of the licensee excepting a mere right to use and occupy the premises for a limited duration. Both documents have to be registered.

Can possession be handed over to do a Pooja ?

While the possession cannot be handed over until completion of the formalities, temporary arrangement could be made to have the apartment kept open for a few hours for the purposes of performing the pooja, subject to approval from the Management of Gera Developments.

From what date is the maintenance amount due?

The Maintenance amounts are due from the date of Occupancy certificate

From what date is the Property tax due?

Property taxes area due from the date the unit is occupied or the date of completion certificate whichever is earlier.

When there are apartments of different sizes in a complex, how is the maintenance charge calculated?

Maintenance charges are subject to terms of agreement.

What is the purpose of collecting amounts towards Sinking Fund in Co-operative Housing Society? What should be the contribution from members towards Sinking Fund? When can the amount collected for Sinking Fund be spent by the society?

The contribution to Sinking Fund is a statutory obligation. Sinking Fund has to be contributed as decided by the General Body of the Society. It should be at least @1/4 per cent per annum on the cost of the each flat excluding the cost of the Land. On the resolution passed at the meeting of the General Body of the Society and with the prior permission of the Registering Authority, the Sinking Fund may be used by the Society for reconstruction of its building/s or for carrying out such structural additions or alterations to the building/s as in the opinion of the Society's Architect is required for carrying out such heavy repairs as may be certified by the Architect. However permission is not usually granted by the Registrar to withdraw amounts from the sinking fund.

What are non-occupancy charges?

Non occupancy charges are levied by the society when the flat owner rents it out to a third party.

About Gera

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