Property Legal Opinion
Need To Plan Before Construct a House
Size of the house , Vacant Land or Set back , Natural Ventilation for Air and Sunlight , proper set back, Provisions, Foundation for Future Extension E.B or Drainage work , we need to plan the foundation based on the future requirement.
Budget for house or Plot: -
Step 1-Design your Floor Plan
Step2- E.B/Water Connection
Step3-Stages of Construction
Foundation to Final Completion of a house,you need to plan for financial budget in 5 stages Either Your own Funds or Banks.
A House is always our Dream , Pride , Life , Value So Construct Your Dream House Now & Enjoy your Life till your End.
Our Support & Wishes to your Dream House
Investment Tips and Suggestions
After Individual House Constructon
A Patta is a crucial document which tells about the ownership of a particular property. It indicates about the person who has the rights to the property. For this reason, it is also known as “Record Of Rights (ROR)”. The person who has his name registered in the Patta is considered to be the owner to be that property.
What type of properties need Patta?
Although all the properties can be registered under Patta Land, the properties which are not visited quite frequently by the owner must be compulsorily registered.
How to get your name registered under Patta Land?
The Patta of a particular property is the most important document to prove the ownership of a person over a particular property. The name which is registered under the Patta of a particular property is considered to be the owner of that property. The State Governments are trying their best to make this hectic procedure of applying and getting your name registered under Patta as comfortable and convenient as possible for the applicants.
WEBSITE ID:- eservices.tn.gov.in
Property Tax or House Tax in India is a tax charged by the municipal authorities for the upkeep of basic civic services and amenities in the city like roads, sewer system, parks, and other infrastructure facilities like lighting etc., as well as for maintenance of the existing infrastructure. This article explains What is Property Tax, Different ways in which Property Tax is Calculated Annual Rental Value, Capital Value System and Unit Area System,How to Pay Property Tax?
Property tax and Income Tax from house propertyProperty tax is different Income Tax payable on income from house property under the Income Tax Act.These are two different forms of taxation.
On which kind of property is property tax levied?
In India, property tax is levied on real estate which consists of buildings or land attached to the buildings. Vacant plots of land without any adjoining building are not liable to be taxed under this head. The type of properties that are liable to be taxed under property tax in India.
How to Pay Property Tax?
In most of the states you can property taxes online. There are offline methods too, like paying at the municipal office, or at select banks as identified by your municipal authority. Late payments towards property tax can attract a fine, generally equivalent to a certain percentage of the amount due. This interest varies from state to state. Any delay in payment can attract a penalty of 1-2% per month.
How is Property Tax Calculated?
There are three main ways in which Property Tax can be calculated given below.
ARV is a system in which the gross annual rent of the property is fixed by the municipal body and taxes would be levied based on the estimated value. Chennai and Hyderabad follow the Annual Rental System.
CVS is where the market value of the property would be used to estimate the taxes to be paid. Generally, this market value is fixed by the stamp duty department of the area.
In UAS system property taxes are levied on the per unit price of carpet area of the property. Cities such as New Delhi,Bangalore follow this system. Generally, you need to ascertain the value of property fixed for your zone and multiply it with the carpet area of your house.
An encumbrance refers to any charge created on any asset, more often used in the context of real estate. An Encumbrance Certificate or EC is a certificate of assurance that the property in question is free from any legal or monetary liability such as a mortgage or an uncleared loan.
It is of capital importance that a homebuyer obtains an EC not only to secure his legal title over the property but also to be eligible to obtain loans from most banks and financial institutions for or against the property.
How to obtain an EC?
The EC for a property is provided at the sub-registrar’s office in which the property has been registered. To ascertain the transactions that have taken place concerning a property-
What you’ll find in the EC
All transactions relating to the property that have been recorded by the Registrar will be looked into, and necessary details will be made to reflect in the EC.
The Certificate usually pertains to a specific period and transactions relevant to that period alone will be considered. Another important consideration is that the EC will reflect only those transactions and documents that have been registered with the office. Certain documents such as testamentary documents and short-term lease deeds need not be registered under the law, and are therefore excluded from the purview of the transactions recorded at the sub-registrar’s office.
Online EC available - 1975 onwards
Manual Ec available -1925 to 1975 period.
Classification of Real Estate
Real estate includes various properties which can be classified by their uses. These are as follows:
Residential Real Estate: The real estate which consists of home, i.e., single, duplex, triplex, township, bungalow etc. used for residential purpose. Whether it is a newly constructed property or a house to be resold by the owner.
Industrial Real Estate: A large scale property utilized to build factories, manufacturing units, warehouses, distribution centres, etc. are categorized under industrial real estate.
Commercial Real Estate: The properties or office buildings such as a complex, are parted into multiple small units. These are rented out or used to run various businesses. Therefore, they are known as commercial real estate.
Retail Space: These properties are used as showrooms, restaurants, shopping malls, retail stores, etc. either individual units or multiple units located in the prime location.
Land: Any vacant land where activities like ranching or farming take place is also a form of real estate.
Fix and Flip Properties: The residential properties which are in a poorly maintained state and are available at a low price are termed as the fix and flip properties. These properties, when purchased by the buyers involved in renovation and repairs of properties to modify them and sell at a high price.
Mixed-Use: A single high-end real estate project which constitutes of different types of properties mentioned above to ensure diversification and minimize the risk of project failure, is termed under mixed-use real estate.
Appreciation of Property Value: Usually, the value of property keeps on increasing even in the situation of inflation in the economy, therefore investing in real estate is a wise decision.
Rental Income: Renting out premises, whether residential or commercial, is always a good idea for generating a progressive passive income in the long run.
Related Commission: The real estate management companies, agents or brokers can make money in the form of commission by facilitating the exchange of property among the buyer and the seller.
Means of Earning Through Real Estate
Investment in real estate can prove to be beneficial in the long run. If done wisely, it may generate lucrative returns.
The advantages of pooling money in real estate are as follows:
Reasons for Failure in Real Estate Investing
If not done wisely, real estate investment may even lead to poor returns or depreciation of the investment value.
Following are some of the primary reasons for which the real estate investing goes wrong:
Tips for Investing in Real Estate
Investing in real estate is a long term approach and yields high profit in future at a low-risk level. These investment decisions are irreversible.
Therefore, the following tips will help you in making real estate investments even with minimal capital:
Collaboration or Partnership
If an investor lacks sufficient money for investing in a property which can prove to be a cash cow in future; he or she can convince a friend, family member or any other known person to invest in a partnership.
CMDA stands for Chennai Metropolitan Development Authority. But recognising the need for a Planning Authority in the State formation in 1974.
The functions of the Chennai Metropolitan Development Authority are:
DTCP means Directorate of Town & Country Planning. Except,Chennai metropolitan area where CMDA is approving the layouts of housing, institutional & industrial layouts beyond 1 hectare extents all other places in Tamilnadu. DTCP is the authority to approve such developments.
Role of DTCP
The DTCP is an exclusive organization for urban planning. The DTCP which is a Town Planning Agency has the authority to develop and update Master Plans for an area under their jurisdiction. Master Plans are important documents. Master Plans identify the “usage” for which land is to be used.
What is DTCP? What are its functions?
Directorate of Town & Country Planning (DTCP) is a government body. The organisation plans and provides technical support for other government bodies with respect to the development of cities, towns and villages. The functions of DTCP are –
The Real Estate Regulation and Development Act, 2016 (RERA) is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector. The Rajya Sabha passed the RERA bill on March 10, 2016, followed by the Lok Sabha on March 15, 2016 and it came into force from May 1, 2016. 59 of its 92 sections were notified on May 1, 2016 and the remaining provisions came into force from May 1, 2017. Under the Act, the central and state governments, are required to notify their own rules under the Act, six months, on the basis of the model rules framed under the central Act.
For long, home buyers have complained that real estate transactions were lopsided and heavily in favour of the developers. RERA and the government’s model code, aim to create a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market. RERA, it is hoped, will make real estate purchase simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act. The RERA will give the Indian real estate industry its first regulator. The Real Estate Act makes it mandatory for each state and union territory, to form its own regulator and frame the rules that will govern the functioning of the regulator.
How will RERA impact home buyersSome of the important compliances are:
RERA definition of carpet area
The area of a property is often calculated in three different ways – carpet area, built-up area and super built-up area. Hence, when it comes to buying a property, this can leads to a lot of disconnect, between what you pay and what you actually get. Gautam Chatterjee, Maharashtra RERA chairman, explains that “It is now mandatory for the developers of all ongoing projects, to disclose the (i.e., the area within four walls). This includes usable spaces, like kitchen and toilets. This imparts clarity, which was not the case earlier.” According to the RERA, carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’. Rahul Shah, CEO of Sumer Group, points out that “As per the RERA guidelines, a builder must disclose the exact carpet area, so that a customer knows what he is paying for. However, the act does not make it mandatory for the builders, to sell a flat on the basis of carpet area.”
Impact of RERA on real estate industry
Initially, a lot of work is to be done to get the existing and new project registered. Details such as status of each project executed in last 5 years, promoter details, detailed execution plans, etc., needs to be prepared. With the advent of RERA, specialised forums such as the State Real Estate Regulatory Authority and the Real Estate Appellate Tribunal, will be established for the resolution of disputes pertaining to home buying and the aggrieved party will have no recourse to other consumer forums and civil courts, on such matters. While the RERA sets the groundwork for fast-tracking dispute resolution, the litmus test for its success, will depend on the timely setting up of these new dispute resolution bodies and how these disputes are resolved expeditiously with a degree of finality.
Tamil Nadu RERA
The Tamil Nadu RERA Rules were notified on June 22, 2017. TNRERA has jurisdiction over Tamil Nadu as well as Andaman and Nicobar Islands. Exclusion/inclusion of projects for registration depends on whether they lie within the Chennai Metropolitan Area (CMA) or outside the CMA, among other factors.
Which projects come under RERA
How can a builder be RERA compliant
What information does a builder need to provide under RERA
How to register projects under RERA
How will RERA impact real estate agents
Under the Real Estate (Regulation and Development) Act (RERA), real estate agents will need to register themselves, to be able to facilitate a transaction. The broker segment in India, is estimated to be a USD 4 billion industry, with an estimated 5,00,000 to 9,00,000 brokers. However, it has traditionally been unorganised and unregulated. “It will bring a lot of accountability in the industry and the ones who believe in professional and transparent business, will reap all the benefits. Now, the agents will have a much larger and responsible role to perform, as they will have to disclose all the appropriate information to the customer and even help them chose a RERA-compliant developer,” says Sam Chopra, founder and chairman of RE/MAX India. With RERA in force, brokers cannot promise any amenities or services that are not mentioned in the documents. Moreover, they will have to provide all information and documents to the home buyers, at the time of booking. Consequently, RERA is likely to filter out the inexperienced, unprofessional, fly-by-night operators, as brokers not following the guidelines will face hefty penalty or jail or both.
How to file a complaint under RERA
Market situation after one year of RERA
Block Development Office (BDO) is the department in charge of the development and activities of a block (block is a district sub-division). Block Development Office also monitor the implementation of all the programs related to planning and development of the blocks.
A flat is the British English equivalent of the word apartment. A flat is a single-family suite of rooms including a kitchen and at least one bathroom situated in a building with multiple such suites, a flat is generally a rental property. The word flat meaning an apartment comes from the Old English word flett, which means floor, a dwelling. Occasionally, one sees the word flat used in North America to give a more upscale feeling to the property available for rent, while in Britain one occasionally sees the word apartment to indicate that the rental property in question is luxurious.
Things to notice while purchasing flats.
What are the details to be looked into while purchasing a New or Resale flat?
Find your requirements while purchase on New or Resale Flats , Check your requirement : -
RESIDENTIAL FLATS OF CARPET AREA, BUILDUP AREA, SUPER BUILDUP AREA
Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual used area of an apartment. Built up Area is the carpet area plus the thickness of outer walls and the balcony.
Flats are generally priced on the basis of the area. However, the actual usable area of the flat may differ from the one you are charged for, or, the saleable area. The difference between the useable and saleable areas is a result of the space included in the calculation. Some of the commonly used area calculations are:
This is the net usable area measured wall to wall, from the inner faces of walls. Simply put, it is the area in a flat which can be covered by carpeting. Some builders may add half the actual area of a terrace or dry areas while calculating the total carpet area. Others may treat these spaces like internal rooms and consider the entire area..
This is the gross area of a flat. Besides the carpet area, it includes the space covered by the wall thickness and ducts. Generally, it is 10-15 per cent more than the carpet area of the flat.
SUPER BUILT-UP AREA
The current trend is to consider this as the saleable area. It is calculated by adding the markup for common spaces to the built-up area. These common spaces include the ones on the floor (lifts, staircases etc) and those in the building (entrance lobby, electrical room, pump room, flower beds etc). Basically, it includes all the common amenities that are built, but not directly charged to the customer. Parking space is excluded from this calculation and is typically charged for separately.Ideally, the area of the common spaces should be calculated and added proportionately to each flat. However, this practice is rarely followed. As a thumb rule, most builders take 1.25 as the multiplying factor to calculate super built up area, multiplying the carpet area by 1.25. This would increase the total saleable area by approximately 25 per cent.This percentage is also commonly known as ‘loading’. Most builders quote loading figures while calculating the saleable area. For example, say the carpet area of your flat is 500 square feet. The builder may add loading of about 30 per cent. This means that have to pay for 650 square feet, in spite of using only 500 square feet.
Since there is no written rule with regards to loading, on occasions, it could even be as high as 50-60 per cent. This implies that a 1,000 sq ft flat (super built up) could have a carpet area of barely 500-600 sq ft. As a result, home owners can find themselves in a dingy flat in spite of paying a high price. Builders usually justify such high loads on the basis of amenities provided. Thus, it would be higher for larger schemes, where more space is given to amenities and common areas as compared to small projects without much frills.
There are many types of Bank Loans Available in National Sector/NBFC. Banks With Different Interest Rates For Housing and Plot Loans Starting with 7.9% to 12.5%.P.A.
|S.NO||TYPE OF BANKS||INTEREST|
|1||Public Sector Banks||7.9-9%|
|2||Private Sector Banks (National Housing Finance Company) Housing Finance. (Bank/RBI)||8.3%|
|3||NBFC (Non Banking Financial Company)||8.75%|
|4||Micro Finance Sector||11% onwards|
|1||6 Lakhs||645 Sq.ft||2,67,000||Alternation|
|2||12 Lakhs||1722 Sq.ft||2,34,000||NA|
|3||18 Lakhs||2153 Sq.ft||2,30,000||NA|
P.MAY Scheme:- (Pradham Mantri Awas Yojana Scheme)
Only will be Lady (2,67,000/-) Loan Interest Subsidy will be given by the Bank
Type Of Flats:- (1,2,3,4 BHK)
Regular Flat, Penthouse, Housing Complex, Gated Community Projects.
A floating interest rate refers to a variable interest rate that changes over the duration of the debt obligation. It is the opposite of a fixed interest rate, where the interest rate remains constant the
The following are the benefits of a variable interest rate: oughout the life of the debt. Loans, such as residential mortgages, can be acquired at both fixed interest rates as well as at floating interest rates that periodically adjust per interest rate market conditions.
Uses of Floating Interest Rate
There are many uses for a variable interest rate. Some of the most common examples are:
Advantages of Floating Interest Rate
Disadvantages of Floating Interest Rate
The following are the potential disadvantages of a variable interest rate loan
FIXED INTEREST RATE
A fixed interest rate is an unchanging rate charged on a liability, such as a loan or mortgage. It might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period. Mortgages can have multiple interest-rate options, including one that combines a fixed rate for some portion of the term and an adjustable rate for the balance. These are referred to as “hybrids.”
Understanding Fixed Interest Rates
A fixed interest rate is attractive to borrowers who don’t want their interest rates fluctuating over the term of their loans, potentially increasing their interest expenses and, by extension, their mortgage payments. This type of rate avoids the risk that comes with a floating or variable interest rate, in which the rate payable on a debt obligation can vary depending on a benchmark interest rate or index, sometimes unexpectedly.
Advantages and Disadvantages of Fixed Interest Rates
Fixed rates are typically higher than adjustable rates. Loans with adjustable or variable rates usually offer lower introductory rates than fixed-rate loans, making these loans more appealing than fixed-rate loans when interest rates are high.
Borrowers are more likely to opt for fixed interest rates during periods of low interest rates when locking in the rate is particularly beneficial. The opportunity cost is still much less than during periods of high interest rates if interest rates go lower.
A recurring deposit is a special kind of term deposit offered by banks which help people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate applicable to fixed deposits. It is similar to making fixed deposits of a certain amount in monthly installments. This deposit matures on a specific date in the future along with all the deposits made every month. Recurring deposit schemes allow customers an opportunity to build up their savings through regular monthly deposits of a fixed sum over a fixed period of time. The minimum period of a recurring deposit is six months and the maximum is ten years.
The recurring deposit can be funded by standing instructions which are the instructions by the customer to the bank to withdraw a certain sum of money from his savings/current account and credit to the recurring deposit account.
When the recurring deposit account is opened, the maturity value is indicated to the customer assuming that the monthly installments will be paid regularly on due dates. If any installment is delayed, the interest payable in the account will be reduced and will not be sufficient to reach the maturity value. Therefore, the difference in interest will be deducted from the maturity value as a penalty. The rate of penalty will be fixed upfront. Interest is compounded on quarterly basis in recurring deposits.
One can avail loans against the collateral of a recurring deposit up to 80 to 90% of the deposit value.
LAND MEASUREMENT TABLES:-
|Unit of Area||Conversion Unit|
|1 Square Feet (sq ft)||144 sq in (1 feet is 12 inches)|
|1 Square Centimeters||0.00107639 Sq.ft|
|1 Square Inch||0.0069444 Sq.ft|
|1 Square Kilometer (sq km)||247.1 acres|
|1 Square Meter (sq m)||10.76391042 sq ft|
|1 Square Mile||640 acres or 259 hectares|
|1 Square Yard (sq yd)||9 Sq.ft|
|1 Acre||4840 sq yd or 100.04 cents (standard unit to measure land)|
|1 Hectare||10000 sq m or 2.49 acres approximately|