List
of Documents required to Buy/Sell/Lease a Property
Buyer
Covering Letter
Indeminity Bond duly Attested
Affidavit duly attested
Original Transfer permission Letter
Original General Power of Attorney
Certified copy of Sale Deed
Seller
General Power of Attorney
Agreement
Affidavit
Earnest Money Advance Receipt
Full and Final Payment Receipt
Broker
Agreement to Buy and Sell
Rent Agreement
C
An overview
of Income
Tax Rules
pertaining
to
properties
is as under:
Registration
Q. What should the parties
do if the Registrar refuses to register the documents?
Ans. On refusal to register
the document by the Registrar, the parties or their
representative/s u/s. 72 & 73 of the Indian Registration Act,
1908 can within 30 days from the date of order or refusal,
institute proceedings in the Civil Court in whose jurisdiction
the office of the Registrar is situated.
Q. Is it advisable to
register the document/s at the time of purchase of immovable
property?
Ans. Yes, it is always
advisable to register the document/s at the time of purchase of
immovable property. In some cases it is compulsory to register
the document/s. Even in cases where it is not compulsory to
register the document/s then also registration of document/s is
strongly recommended because:-
(1) The title gets
additionally secured
(2) If you propose to
obtain a loan in future then at that time banks or financial
institutions might insist for registration of documents/s
(3) Even if you propose to
register the document/s in future there is a possibility that
the seller may not co-operate with you.
(4) The certified true
copy of the document/s can be obtained from the registering
authorities after completion of index and at any point of time
and even if you loose the document/s you can still establish
your bonafide to the property.
Q. At the time of
registration should the area in the agreement be mentioned as
carpet area, built-up area of super built-up area?
Ans. The Registering
Authorities insist that the area must be mentioned as built up
area. If the vendor has mentioned the area as carpet area then
the registering authorities compel the persons to mention the
area on built-up basis on the rubber stamp which is affixed by
them at the time of registration of the information insisted
upon by the registering authorities before registering the
document/s is as under:-
(a) Number Of Floors (b)
Built-up Area (c) Ward (e) Village & (f) Taluka.
Before You
Buy
1. The Title Report
Colloquially known as the
‘property card’ or in some places ‘saat-bara’, this is an
investigation into the title of the land over a period of 30
years. It ensures the marketability of the land in the hands of
the original owner. Ask for the detailed report, not merely an
abbreviated certificate. This should be prepared for the seller
by his lawyer & should be checked by your lawyer. If the title
is not clear you can be evicted from the property at a later
date.
2. Property under
construction
If you are buying a new house,
ask for an Allotment Letter or Development Agreement detailing
the agreed price, payment & construction schedule, house plans,
delivery date & builder’s liability in case of late completion
or problems after possession. Make sure that the developer has
clear title to the land, & that the relevant local authorities
have approved the building plans. Once construction is over, ask
for the completion & occupation certificates, which indicate
that the building has adhered to municipal requirements. Some
other costs you will incur: society formation charge, transfer
charge, deposit for electricity meter, charge for registration
of agreement.
3. Constructed property
Make sure that the seller has
the title & possession of the property as well as the right to
transfer the property. Check that the relevant approvals, if
any, have been obtained from the land development/planning
authority & the Income tax department. Ensure that there are no
tenants & get a declaration that the property was purchased from
the seller’s funds & is not mortgaged. Place a notice in the
newspapers about the proposed purchase. Get a No Objection
Certificate from the builder or society. Check that dues such as
property tax, society, water & electricity bills etc. have been
paid in full. Decide who will pay society transfer charges. Take
possession of all relevant documents & also the original
allotment letter, completion certificate, occupation certificate
and all other documents given by the original builder.
Valuation
It is an important aspect to
arrive at a bargain while deciding to purchase an immovable
property. Besides making own assessment from the market,
assistance of Government approved valuers may also be sought. A
comprehensive valuation report indicating value of each of major
assets and also the basis and manner of valuation must be
obtained from approved valuer against payment of his fee.
Reputed approved valuers have set up their offices in all the
important cities in India. In case of plantation, valuation
report may also be obtained from recognised private valuers.
Verification
of the Title of the vendor
This is the most important
aspect of a purchase transaction of an immovable property and
may be competently handled by a reputed
lawyer/solicitor/chartered accountant etc. The verification is
necessary from following two angles:
i) Validity of Title:
The vendor must have a clear, valid and marketable title over
the immovable property which is the subject matter of
transaction. This would require a close scrutiny of documents of
title produced by the vendor. The document must be a registered
document.
ii) Obtaining of
Non-encumbrances certificate.
Income Tax
SECTION 24 (2): Interest Deductions - The budget presented by the Finance Minister for the year 2001-2002, has increased the ceiling on the amount of deductions from Rs. 1,00,000/- up to Rs.1,50,000/- from an individual's income if it is self-occupied for the interest paid for a home loan.
SECTION 54 F: The income tax act gives a person who does not own a residential house a concession to purchase one when they sell a capital asset. If you sell a capital asset, normally, you are required to pay tax on the gain in the value of the asset after indexation of the cost. If however you do not own a residential house, you can reinvest the net consideration you received from the sale of the capital asset in a house property and not pay any income tax on the gain from the sale of the capital asset. There is however a time frame within which to reinvest the funds from the gain of the sale of the capital asset.
SECTION 54: Reinvestment of House Property - An individual or HUF reinvesting the net proceeds from the sale of a house in another residential house is exempted from Capital Gains Tax u/s 54, provided the new house is purchased within 2 years after or one year prior to the date of transaction.
SECTION 139 (1) : All persons whose income is below taxable limits in occupation of immovable property exceeding 800 sq.ft. Residential Property or 125 sq.ft. Commercial Property, are required to file Form 2(C ) with the income tax (for Pune city).
SECTION 88: Repayment of the principal of a home loan up to Rs. 20,000/- is eligible for deduction under Section 88 whereby 20% (i.e. Rs.4,000) can be deducted from the total amount of tax payable.
Legal Forms
DISCLAIMER: These legal
forms and documents are for reference only. Any agreement that
you enter into, should be in consultation with a Solicitor or an
Advocate.
satyam-properties.com
will not be responsible for any claim arising out of the use of
any of the below mentioned documents.
To print
the form, click on the desired form and use the Print button of
your browser.
