FAQ


General
 
  1. Describe valuation of property?
The overall valuation process calculates the MV (market value) of the assets. Some major factors are taken into consideration before Market Value (MV) is calculated, like quality of construction, local infrastructure, types of property, maintainenace along with demand and supply operating in market.
 
  1. How does property evaluation work?
  • If a real estate agent is tasked to evaluate the value of property, he will calculate it on the basis of recent sale and purchase of equivalent properties in that particular area.
  • This may help in getting an idea of property’s real MV whereas as the guidance value of the property would be less than MV. It also acts as a negotiating tool while selling of assets.
  • Certifications also help in situations like will statement, business balance sheets, insurance papers situation where the exact value of the property has a legal bearing.
  1. What are Leasehold properties?
When a particular property is given to an individual known as Lessee for a given period of time by the owner of the assets known as Lessor, that property given by him is termed as Leasehold property.
A fixed amount is paid by the Lessor as annual lease or lease premium, and the land ownership still remains with the Lessor. Prior permission is required for transfer of property.
 
  1. What is freehold property?
Freehold property is referred as when the right of ownership for a property is given to an individual for price. Freehold property can be registered and transferred easily and no premium charges are to be paid like as in leasehold property.
 
  1. What are the advantages of converting leasehold property into freehold?
There are various advantages. A freehold property has more market value and can be sold, mortgaged or kept as a security. You can become an owner of a particular property if you get it converted which is not possible in leasehold property.
 
  1. What comprises the conclusion of sale of a property?
An agreement of sale along with possession of the property is a considered as sale. And the entire price money is paid at the time of actual transferring of possession.
 
  1. Who are the approving authorities related to property acquisition?
Make sure you approach the right authority for registration like Gramathana, BBMP, BDA or BIAPPA and other local authorities.

Home Loans and Income Tax Benefits
 
  1. What is EMI?
Equated Monthly Installment refers to the monthly payment you make on your home loan. Though it is an unequal combination of interest payment and principal repayment, the total monthly amount is calculated in such a way that it remains constant all through the repayment tenure. EMI begins when the loan is fully disbursed. That means, once your home loan company makes the entire loan payment, you begin repayment.
 
  1. How does EMI differ from PEMI?
As mentioned above, the EMI begins only when the loan is fully disbursed. If the loan is partially disbursed, then only interest payments are made on the amount disbursed. These interest payments made before the loan is fully disbursed and before actual EMIs begin, are known as pre-EMI.
 
  1. What are Pre EMI benefits?
As you know Pre- EMI are only the interests portion on the distributed loan amount until the full loan is distributed. The EMI Structure starts only after the Pre-EMI phase. On completion of the Project, Pre EMI interest paid can be deducted later in 5 equal installments for next 5 yrs from the end of financial year of possession.
 
  1. Are Loans taken from Friends and Family eligible for Deductions (Interest)
In case you want to take loan from your friends , parents or any other person , you can still claim the interest on the loan under Sec 24 , which is up to 1.5 lacs per year. However you cannot claim the principal amount under sec 80C, which is applicable only for loans taken from Bank or financial institution.
 
  1. Are loans taken for Extension or Renovation of House eligible of rebate under 80 C?
If you take a loan for extension or renovation of your existing house, in that case you can not claim the principal part under sec 80C, but you will be able to claim interest amount under sec 24, but the limit in this case is only up to Rs 30,000 for self-occupied properties. However for houses which are let-out (rented or second home which is not occupied), there is not limit for tax deduction.
 
  1. Are there any income tax benefits from owning a property home?
Yes, there are. The tax code provides various benefits to people who own their homes. They may deduct both property tax payments and mortgage interest and other expenses from their income tax.
 
  1. How to compute income from let out property?
Income is computed after some deductions from the net value of the let out property. Computation of net value of let out property: The gross annual value of let out properties will always be greater of the following three amounts:
  • Municipal value of the property
  • Actual rent received during the year
  • Fair rent meaning rent of similar properties In same locality.
Out of the gross annual value, municipal taxes paid during the year have to be deducted to come at the net annual value.

Registration Of Property, Khatha and Property Tax
 
  1. What is purchase and sale agreement?
It is a document received after mutual consent of both the buyers and sellers which states final sale price and other purchase terms as under:-
  • Final sales price
  • Earnest money details
  • Closing date
  • Title insurance company
  • Title condition
  • Addendums
  • Contingencies
 
  1. What is the process of registration of properties?
Registration of a property involves stamping and paying minimum registration charges for a sale deed which acts as a legal proof and kept as a record at sub-registrar’s office.
 
  1. Where can I register my immovable property ?
Documents pertaining to immovable property shall be registered in the Sub-Registrar office in whose jurisdiction the property is situated
           Or
If you have any problem with the Sub-Registrar's office please approach the District Registrar of your district.
In Bangalore Urban district still if you have problem in registration you can visit the Office of the Inspector General of Registration where your registration work pertaining to Bangalore Urban district will be attended.
 
  1. What are the registration and Stamp Duty charges in Bangalore?
The ongoing stamp duty fee in Bangalore is approximately 5.52 per cent and registration charge is 1 per cent of the total value of the property.
 
  1. Explain the Power of Attorney?
There are two kinds of Power of Attorney.
1. General Power of Attorney (GPA)
2. Special Power of Attorney (SPA)
a) General Power of Attorney is executed by a person in favour of another to act on behalf of him generally. It may include management of property, Court matter/litigations, sale of mortgage of property or any other act.
b) Special Power of Attorney is executed to do a particular act. Power of Attorney holder is answerable to the principal and liable to give accounts to him .
 
  1. What is meant by Encumbrance Certificate?
Encumbrance Certificate is a record showing registered transactions pertaining to a property. If mortgage, sale or any other deeds in respect of a property are registered, encumbrance certificate is issued Form No.15.
 
  1. What is meant by a Nil Encumbrance Certificate?
If no deeds of transactions are registered in respect of a property nil encumbrance certificate is issued in Form No.16. If Certificate is issued in this form, it means that there are no registered transactions / liabilities on the property for a given period of time unregistered transactions are not included in this certificate.
 
  1. What are Khatha services?
The Khatha services involved mainly three steps
  • Khatha Registration which includes necessary documents and time required is 7 – 30 days.
  • Khatha Transfer based on the documents like sale deed, family partition deed, gift deed etc. and time required is 7-30 days.
  • Khatha Bifurcation and time required is 30 days
  • Lastly, Khatha Amalgamation which also requires 30 days’ work in full documentation process.
  1. How property taxes are calculated?
Property taxes are calculated by taking determined value of the home and multiplying it with the tax rates that is set by local government authority and then applied relief are deducted from your exact bill.
 
  1. Is the facility for online property tax payment available?
Yes, the facility for online property tax payment is being provided, the e-payment facilitates payment of direct taxes by taxpayers. To make use of this service the taxpayer is required to have net banking account with any of the authorized banks.

Residential
 
  1. Major differences between built-up, carpet area and super built-up area?
The area of a building, excepting walls of the area is known carpet area whereas the area of the walls including balcony and carpet area is known built-up area. The built up area coupled with lobby, lifts, swimming pool and garden is known as super built-up area.  
  1. How maintenance charge is calculated on different sizes apartments in a complex?
The actual area owned by individuals is taken as a base for calculating maintenance charges. 
  1. Why Co-operative societies collect Sinking Fund?
Co-operative housing societies have a statutory obligation to collect sinking funds. 
  1. How can lease agreement be created?
A lease agreement can be created in two ways
  • An oral agreement with delivery of possession is considered.
  • And when the contract of lease is from year to year or it exceeds one year rent then in that case a registered agreement can be created which both lessee and lessor can perform.
 
NRI’s
 
  1. Does NRI's need permission from Reserve Bank to get immovable property in India?
No. NRI's do not require any permission other than acquiring agricultural property or a farm house in India
 
  1. Does NRI's need permission from Reserve Bank to transfer immovable property in India?
No. NRI's do not require any permission other than transferring of agricultural property or farm house to another NRI or citizen of India.
 
  1. Do PIO's need permission from Reserve Bank to buy an immovable property in India for their residential use?
No, because Reserve Bank has already granted permission to Indian origin foreign citizens to purchase immovable property other than agricultural land or farm house in India. .
 
  1. How the purchase factors for the immovable property is paid by PIO's under the general permission?
The buying factors is either remitted inward in foreign exchange by making use of normal banking or out of funds from any non-resident accounts from any bank of India.
 
  1. Can such property be sold without prior permission of Reserve Bank?
Yes, Reserve Bank has already given the general permission for selling of such properties.
 
  1. What are the other amenities available for repatriation?
Authorized dealers can allow settlement up to USD 1 million for any reason. The limit of USD 1 million per year includes sale proceeds of immovable properties obtained by the NRI/PIO's while they were resident in India and remained for a time period 10 years or above. In case the property is sold after being held for less than 10 years, settlement can be possible if the sale proceeds hold for the balance period in NRO account or in any other eligible accounts.
 
  1. Is it possible PIO’s obtained or dispose of immovable properties by way of gift?
Yes, Reserve Bank has given permission to foreign citizens of India to obtain or disposing of other than agricultural land by way of gift to any India citizen, PIO or NRI.
 
  1. Can NRI rent out their properties if not in use?
Yes, Reserve bank has allowed them and the income earned from rentals is qualified for repatriation.

Contact Details
 
  1. Please give your current contact details.
Answer - It is already mentioned in website. 
 
Phone: 080 4920 2323; 080 2572 7770
Mobile: +91 99000 56552
Website: www.laasyaprojects.com
E mail: [email protected] laasyaprojects.com