Frequently Asked Questions
Below are the common queries about buying and owing a property in India. Find out the answers to get more detailed information about rules, laws and important information.
Lease - This is defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.
License - This is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration.
A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.
There are various implications of entering into a lease agreement such as you have to pay the stamp duty, the lease agreement has to be registered etc.
Yes. The RBI may grant permission to a foreign citizen of non-Indian origin/foreign companies if the property is purchased for residential use and the consideration is paid by way of foreign exchange.
NRI(s) can be defined as -
- Indian citizens who stay in a foreign country for employment.
- Indian citizens carrying on their businesses or vocations.
- Indian citizens abroad for any other purpose in the circumstances indicating a definite intention to stay outside India for an indefinite period.
NRI(s) can also be -
- Indian citizens working abroad on assignment with foreign governments or international agencies.
- Officials of central and state government and public sector undertakings deputed abroad on temporary assignments or posted to their offices abroad.
- Indians who have settled abroad permanently or gone abroad on immigration.
Non-resident Indians become residents of India once they come back to India to engage in employment, for carrying on any business or vocation, or for any other purpose indicating a definite intention to stay in India for an indefinite period.
By registering the transaction of an immovable property, it becomes permanent public record. Title or interest can be acquired only if the deed is registered.
Property Buying Tips -
The first step towards buying a property starts from being able to identify the one that suits your needs and fits your budget. With best rates and best services. However, it is important to select the property depending on following criteria -
|Parameter||Questions to be asked|
|Location Of Site||While choosing the location, you need to keep the following parameters in mind like proximity to the main roads, bus stops, railway lines, transportation services, civic amenities like educational institutions, park, police station, temples, community hall, hospitals, and auditorium within reach.|
|Affordability||Does the location fit your budget?|
|Place of work||How far is the office from the desired location?|
|Market place||Where is the nearest market?|
|School||Where is the nearest school?|
|Public transport||Are buses/trains easily available from the location?|
|Availability of water and electricity||Is there a steady supply of both?|
|Residential/ Commercial||Commercial areas face traffic jams during working hours and level of noise is rather high|
|Hospital/ Medical services||Are they available easily?|
|Type of ownership||In some areas, property is available only on a power of attorney or "pugree" basis. Getting funding for such properties is a problem.|
|Self constructed property (SCP)||SCP is a situation where you buy a plot of land and construct a house there. All banks may not fund such projects.|
In case of a resale property, you need to bear the following additional points in mind while selecting a property
|Parameter||Questions to be asked|
|Chain of title||It is important to have all the proper registered documents from the proposed seller that declares his ownership. These documents are important for you to garner a loan from the bank.|
|Neighbours||Grumpy neighbours can make life very unpleasant.|