Q What is the difference between built up area, super built up area, and carpet area?

A Carpet Area:This is the area of the apartment/building which does not include the area of the walls. Built up Area: This includes the area of the walls also Super Built up Area: This includes the built up area alongwith the area under common spaces such as the lobby, lifts, stairs, etc. This term is therefore only applicable in the case of multi-dwelling units.

Q What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement ?

A Market value means the price at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value which ever is higher.

Q Who is the appropriate authority for knowing the market value of the property ?

A The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.

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

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

Q Is a POA revocable ?

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

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

A A 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.

Q How to convert a POA flat into a Free Hold one ?

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

Q What is a Sale Deed?

A Sale Deed also known as conveyance deed, is a document by which the seller transfers his right to the purchaser, who, in turn, acquires an absolute ownership of the property. This document is executed subsequent to the execution of the sale agreement and after compliance of various terms and conditions detailed in the sale agreement.

Q What is a Draft Sale Deed?

A A draft Sale Deed, containing full details of the parties, advance amount paid, mode of balance amount payable, receipt of the balance amount by the seller, handing over the original documents of the property, handing over the possession of the property, handing over the authorization letter to transfer power and water meters, signing of the application for transfer of khata, title of the seller of the property, indemnifying the purchaser in case of defect in the title, easement rights, will be prepared by the purchaser's advocate. Such draft Sale Deed should be captioned as draft Sale Deed and shall be signed by the purchaser's advocate.

Q What is Khata?

A: A Khata is an account of assessment of a property, recording details about your property such as size, location, built up area and so on for the purpose of payment of property tax. It is also a kind of identification of the person who is primarily liable for payment of property tax.

It is one of the required documents in case you require a building license, trade license or loan from banks or any other financial institutions. It is mandatory for all property owners/holders to pay property-tax, hence you need a khata.

Q What is the difference between a Khata and a Title Deed?

A A khata is an account of assessment of a property for the payment of tax. The khata does not confer ownership. However, the title deed is the document through which a person derives a title or ownership of the said property.

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

A 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 centres, 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

Q How can knowing the Carpet Area, Built-Up Area & Super Built-Up Area of a flat help me in purchasing a flat?

A This break up is extremely essential as builders can place anywhere from 65% to 85% per cent of the super built area as carpet area. That means, if the price is quoted as 1,000 sq ft super built up area, the carpet area could be anywhere from just 650 sq ft to 850 sq ft. If this break up is not mentioned in the agreement, demand that the vendor/ builder mention it in the sale deed.

Q Should I inspect a property before buying it?

A Yes. Buying a home or an office is probably the largest single investment you will ever make. You should learn as much as you can about the condition of the property and the need for any major repairs before you buy, so that you can minimize unpleasant surprises and difficulties at a later stage. A close inspection points out the positive aspects of the property, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.

You need to investigate the condition of the property and all its systems such as :-

•plumbing systems, drainage, water faucets and sanitary fittings.
•electrical systems, circuit breakers, wires, capacity of the electric meter, functioning of light fittings
•roof, walls, ceilings, floors, paint work.
•foundation, basement and visible structures.
•doors and windows, latches, locks.
•structural stability of the building.