1.How should I verify whether the property I am interested in is genuine or not?

It is always advisable to have the property papers thoroughly checked by the lawyer before initiating any purchase transaction and obtain a legal report. A Title Clear Certificate from the lawyer is also highly recommended.

2. Can a NRI buy agricultural land in India?

No, a NRI cannot buy agricultural land in India. As per FEMA, a NRI can buy any immovable property in India apart from agricultural land, farm house and plantation property.

3. Is built up area different from super built up area?

Yes, they are entirely different and you are suggested to ask for Super built up area of whole Society and the particulars should also be mentioned in the Sales Deed.

4. The builder is giving me the ‘Plan Copy’ of the architect; is it sufficient?

No, it is certainly not sufficient and does not guarantee authenticity. You should always ask for the ‘Plan Pass Copy’ duly signed by government authority.

5. What documents are valid to certify the Company’s credentials?

You may ask for documents such as CA credential letter or Bank credential letter to verify company’s credentials.

6. Is the developer responsible for informing me on the exact amenities of the residential unit and society?

Yes, it is developer’s duty to inform you about the features and amenities included in the unit you are interested in. You should always ask for all details including floor plans, amenities, features, delivery schedule, etc. before arriving at a decision.

7. My broker promises me of many amenities but I cannot see them in the Plan Pass Copy?

Only trust the details mentioned in the Government Approved Plan Pass Copy. Anything committed apart from that may be misleading.

8. My broker promises me of heavy discounts if I pay by cash. What should I do?

Always pay the transaction amount by cheque only. Cash transactions are unaccounted for and may lead to fraudulent activities.

9. My broker says that if the land is converted to N.A, the price shall increase. What should I do?

This is false and is communicated by broker so that agriculture land can be sold at non agriculture rates. Always ask for Non Agriculture (N.A) conversion copy duly signed by the government authority.

10. Does an upcoming metro station or flyover affect my property prices?

Yes, any upcoming infrastructure near your unit is likely to cause appreciation in the price of property. Always ask the builder for such plans by the government and decide accordingly.

11. Someone told me that price vary as per developers. Is it true?

Yes, prices within the same location for a certain kind of property may vary depending upon various factors. It is suggested that you do your research well before purchasing a property.

12. Is it important for me to visit the site to check the location?

Yes, it is always suggested that one should visit the site and cross check the demarcated location of property against the plan copy approved by government.

13. Can a NRI avail tax benefit on rental income earned from property purchased in India?

Yes, a third of the rent is exempt from tax and is kept aside as maintenance and repair expense. If the property on which rental income is being earned has been taken on bank loan then the interest on such loan is also fully exempted from tax.

14. What is the minimum holding period of a property for the profits to be termed as long term capital gains?

If the property purchased is held for 3 years or more before resale, the profits earned on it is termed as long term capital gains.

15. Can I escape tax on long term capital gains?

Yes, if such gain proceeds are reinvested into another property, no tax shall be applicable on the same.

16. Should a property be registered? If yes, why?

Registering an immovable property makes the transaction a permanent public record. Only if the sales deed is registered, title of the property can be acquired.

17. Does a NRI require permission from RBI for purchasing a property?

Yes, if the property being purchased is for residential use and payment is made in foreign currency, permission is to be acquired by the NRI to execute such transaction.

18. What does the term ‘Clear Title’ refer to?

Clear title means a title that is free of liens or legal issues towards ownership of the property.

19. What is the generic criterion for home loan?

To be eligible for home loan, a person should be:-

  • Salaried of self- employed
  • A resident Indian or NRI
  • Minimum 21 years of age
  • Maximum 65 years of age when home loan matures

20. What are the payment terms in case of home loans?

Payment term in case of home loan usually vary between 5 years to 20 years.

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