Info and Faq's

1. What is meant by Carpet Area, Built-Up Area & Super Built-Up Area?

  • Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual used area of an apartment/office unit/showroom etc.
  • Built-Up Area is the carpet area plus the thickness of outer walls and the balcony.
  • Super Built-Up Area is the built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. The plinth area along with a share of all common areas proportionately divided amongst all unit owners makes up the Super Built-up area. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.

2. What is Leasehold Property?

  •  Leasehold Property is property leased to a lessee for a stipulated period. The Lessee pays lease premium and annual lease amount as fixed and mutually agreed by the Lessor and Lessee. The land ownership rights remain with the Lessor and a prior sale-permission is normally required if you plan to transfer the property.

 3. When is a sale of immovable property concluded?

  • The sale of immovable property is concluded on payment of the entire consideration amount, registration of the document of sale and handing actual possession of the property to the purchaser.

 4. What is an EMI?

  • EMI, also known as Equated Monthly Instalments, is the amount payable to the Housing Finance Institution every month, till the loan is paid back in full, comprising of portion of interest and principal. EMI is to be paid every month through post dated cheques or through direct deductions from the salary.

5. What is the home loan amount generally granted by financial institutions?

  • The amount of home loans granted by various financial institutions generally is between 2 lakhs to 1 crore. It is between 70 to 100% (under special schemes) of the purchase price.

 6.  What is the best way to select the cheapest home loan?

  •  Keep the loan period constant and calculate the total amount paid for the home through the different loan options available.

 7. What are the types of loans available depending on the interest charged?

  •  Most Housing Finance Companies offer the fixed rate as well as the adjustable rate (Variable – Floating rate) home loan to customers

               o   Fixed rate: where the rate of interest charged by the HFC on the loan is constant over the tenure of the loan.

               o   Variable rate: Commonly known as Floating Rate, where the rate of interest charged by the HFC on the loan keeps changing with respect to the rates in the market over the tenure of the loan.

 8. How to calculate an EMI?

  • EMI Formula: l * r [(1+r) n / (1+r) n-1 ] x 1/12
  • where,

              l = Loan amount 
              r = Rate of interest 
              n = Term of the loan

 9. Who is liable to pay Stamp Duty-the buyer or the seller? 

  • The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary. Section 30, of Bombay Stamp Act, 1958 states the liability for payment of stamp duty.

 10. 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? 

  •  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 whichever is higher.

 11. Which are the instruments that attract the payment of Stamp Duty?

  • The instruments like Agreement to Sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty on market value of the property.