1. How many floors can be constructed in a residential property?
Ans. Normally residential constructions comprising of the basement, the first floor and the second floor are allowed to be constructed. But if the construction is next to a road whose width is more than 80 sq. feet than a third floor is also allowed.
2. Can corporate firm/houses open their offices in residential areas?
Ans. No, the practice of opening offices in residential areas is illegal. But in the usual course of business service based professions like lawyers, doctors, etc are allowed to open their offices in such residential properties. But any complaint by the owners will perforce them to vacate it.
3. If the lease does not contain any clause for escalation of rent then can the lease amount on renewal be escalated?
Ans.There is a provision in the rent control act that rent will increase 10% after every 3 years.
4. What is the meaning of leasehold and freehold properties?
Ans. Leasehold Properties
Leasehold ownership of a flat fundamentally means a long tenancy - the right to own, occupy and use a flat for a long period known as the 'term' of the lease. This can be for between 99 - 999 years; and the flat can be bought and sold within that period. There are 'long' leases and 'short' leases, referring to the number of years left on the lease.
Freehold properties
Freehold property means that the owner has complete and absolute ownership of the land, and all buildings that stand on the land. The owner of the freehold property is therefore in a position to do what they wish to and with the property, in accordance with local planning regulations. 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. Top
5. What are the benefits of getting a leasehold property converted to a freehold property?
Ans. Normally residential constructions comprising of the basement, the first floor and the second floor are allowed to be constructed. But if the construction is next to a road whose width is more than 80 sq. feet than a third floor is also allowed.
6. What % of the plot can we constructed?
Ans. Following are the benefits: -
1) one can become a full-fledged owner only by getting the sale deed of the property after getting it registered
2) it has got better marketability.
3) the property can be sold, mortgaged or kept for standing security.
6. What % of the plot can we constructed?
Ans. In Gurgaon one person can build 65% of the plotted area.
Buying
1. What are the property documents required to get a freehold residential or flat?
Ans. The documents required are:
• Copy of registered sale / conveyance deed through which the seller got the title
• Photo-copies of all earlier sale deed
• Agreement to sell
• Receipt of payments made to seller
• Copy of approved plan of construction
• Title search report
2. Are deals based on registered power of attorney/ registered will/ original allotment letter/agreement to sell/ change of address legally safe?
Ans. Yes, such deals are considered legally safe.
3. What is the difference between built up area, super built up area, and carpet area?
Ans. 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.
4. What are all the important documents one should check before buying any property ?
Ans. 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.
5. 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 ?
Ans. 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 which ever is higher.
6. 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 genuinely of the builder?
Ans. 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.
Renting
1. What is a lease?
Ans. Lease is a contract between the lessor and the lessee for possession and enjoyment of the profits of the land on one side and recompense by rent or other consideration on the other.
2. How can lease agreement be created?
Ans. Lease agreement of an immovable property can be created by two methods-
1) registered instrument in cases where the lease is from year to year or exceeding one year rent or reserving yearly rent. In such cases the instrument must be executed by both the lessor and the lessee.
2) Oral agreement followed by delivery of possession in other cases.