FAQs

14) What should a purchaser keep in mind while purchasing a residential flat?

:- Some of the factors a purchaser must keep in mind while purchasing a residential flat are:
• Locality i.e. transport, schools, hospitals, market, business district, entertainment centers, hotels, restaurants, pollution levels
• Quoted area of the flat i.e. Carpet, Built Up Area and super Built Up Area
• Car parking space
• Quality of construction
• Reputation of the builder or seller
• Sufficient water and electric supply, other utilities
• Cost components: price, stamp duty, registration charges, transfer fees, monthly outgoings and society charges, costs of utilities.
• Potential for resale or renting out of the property
• Any other distinguishing features or advantages of the property.

15) Are there any formalities to be completed or forms to be filled on execution of the Sales Deed or document of transfer?

:- Yes. The formalities and forms may vary from State to State depending on where the property is situated.
• Every State has its set forms under the Registration Rules that are required to be filled and filed along with and at the time of Registration of Sale Deed/Transfer Deed.
• Under the provisions of the Income Tax Act and Rules for a transaction of sale, it is now compulsory for the Purchaser and Seller to give their Permanent Account Number and in the event of either the Seller and/ or the Purchaser would be required to fill Form 60 of the Income-Tax Rules.
• In case of either the Purchaser or the Seller being a Non-Resident Indian, not assessed to tax in India, such a Party would be required to file Form 60 of the Income-Tax Rules.

16) What are the risks associated in buying a flat on Power Of Attorney (POA) basis?

:- Purchasing a flat on a POA basis is not permitted under the law of the land.

17) Is a POA revocable?

:- Yes, a POA can be either revocable or irrevocable, depending on what sort of a POA one has made.

18) What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any?

:- Freehold property (plot or a flat) is one where there is a whole and sole owner(s), ownership is full and unconditional (within the provisions of the laws of the land) and there is no lessor / lessee involved.

19) How to convert a POA flat into a Free Hold one?

:- POA cannot be converted into anything. Leasehold properties of DDA in Delhi can be converted to freehold, as per provisions.

20) Within what time period should an agreement/deed have to be registered?

:- The property agreement should be registered with the Sub-registrar of assurances under the provisions of the Indian Registration Act within four months of the date of its execution.

21) 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.