Purchasing your dream home is one of those important decisions that demands accurate research, proper planning, adequate information, and a systematic budget plan. However, before home buying, you should be aware about all common areas allied with buying and owning property in India. The following user guide will explain you all the common rules, laws, and important factors that are not only mandatory but also very helpful.

Frequently Asked Questions

Carpet Area refers to the usable area of a residence, office establishment, business unit like showroom, and others sans the wall. It is that functional area covered within the walls where a carpet can be laid.
Built-Up Area includes the usable carpet area, wall, and the balcony.
Super Built-Up Area encompasses built-up area and common areas such as proportionate share of the open parking, stairs, elevator, and corridor outside the flat. This term finds application in multistoried building.

According to the Section 105 of Transfer of Property Act, 1882, lease agreement is defined as a contract between a lessor and lessee that delivers rights to lessee to use the property owned or managed by the lessor for a certain amount of time frame. Under this agreement, the lessee does not get the ownership right of the property. On the contrary, the lessee can gain needed allowance to renovate the property as per need from the lessor. The rights can be renewed, once the time of the agreement surpasses in accordance of the lessor.

The Section 52 of Indian Easements Act, 1882 states that by the Leave and License agreement the licensee get the ownership to utilize and inhabit the premises for a time bound duration.

To complete the lease agreement you need to accomplish the stamp duty and the agreement has to be registered.

The foreign citizen should purchase the property for residential use only and the cost is paid by means of foreign currency.

NRI denotes Non-Residential Indian, a terminology applied for an individual who is of Indian origin, however, he has migrated to a foreign country for varied purposes. These purposes are:

• Employment
• Business
• Working on assignment for foreign government or international agencies
• Temporary deputation
• Posted to the office in abroad
• Permanently settle in foreign or immigration
• Medical treatment

Apart from this, NRI is also applicable for those persons who have born in India but possess citizenship of a foreign country. The NRIs can become residents of India when they come back from the foreign land to India for an unlimited period of stay.

Registration is required to keep an official record of the home buying. After registration is being done, the individual for whom the property is registered becomes the lawful owner of the premise and is accountable for the property in all aspects.

Suppose you buy a flat in two years after selling the earlier flat and invest the complete amount in the new flat, then you are not required to provide any capital gain tax.

According to Bombay Rent Act, 70 percent tenants out of total 32 tenants are to agree to form a co-operating housing society.

The new Rent Act does not contain any new provisions on number of tenants looking forward to form a society.

The group of tenants should approach the registrar of co-operative societies and have to file the required official documents.

A notice should be given to the tenant. If the tenant fails to serve the notice period, a court case can be filed against the tenant. It has been observed that the case takes 10 to 20 years to announce the judgment.

Yes. Once the lease agreement completes accordingly, the concerned owner sends a written letter to the rent holder. Therefore, it is advisable to renew the agreement once the time frame has completed.

There is no standard norm for recognizing the rate of rent market. However, you can get the rent information through brokers, real estate vendors, registration authorities, and others.