| GENERAL |
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1. What is the meaning of a property’s market value? How is its stamp duty decided?
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| The price that a property can command in the open market is known as its market value. Stamp duty is based on the Guideline value which is fixed by the Govt. from time to time. |
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2. What does the term ‘Leasehold Property’ mean?
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| When a piece of property is given or ‘leased’ to an individual (known as the ‘Lessee’) for a stipulated period of time, by the owner of the property (known as the ‘Lessor’), the property is referred to as Leasehold Property. A certain amount is fixed by the Lessor to be paid as lease premium and annual lease. The land ownership rights remain with the Lessor. Transfer of property requires prior permission. |
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3. What does the term ‘Freehold Property’ mean?
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| When ownership rights for a piece of property are given to the purchaser for a price, that property is referred to as Freehold Property. Unlike in the case of leasehold property, no annual lease charges need to be paid and the freehold property can be registered and / or transferred in part(s). |
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4. Are there any benefits in converting a leasehold property to a freehold one?
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| There are several benefits: if you convert the property to a freehold property, you become a full-fledged owner by getting the sale deed and having it registered. A freehold property has better marketability and can be sold, mortgaged or kept for standing security, which cannot be done with leasehold property. |
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5. Are there any income tax considerations while transferring newly acquired property?
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| If the transfer takes place within three years of purchase, the income tax exemption under Section 54F of the Income Tax Act does not hold good. |
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6. What constitutes conclusion of sale of a property?
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| An agreement of sale, coupled with actual possession of the property would be considered as a conclusion of the sale. Usually, the entire amount is paid at the time of handing over possession. |
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| RESIDENTIAL |
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7. What is the difference between carpet area, built-up and super built-up area?
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| The area of an apartment or building, not inclusive of the area of the walls is known as carpet area. This is the area that is actually used and in which a carpet can be laid. When the area of the walls including the balcony is calculated along with the carpet area, it is known as built-up area. The built-up area along with the area under common spaces like lobby, lifts, stairs, garden and swimming pool is called super built-up area. |
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8. When there are apartments of different sizes in a complex, how is the maintenance charge calculated?
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| Legally, the actual area owned by the individual is the basis for calculation of maintenance charge. |
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9. Why do Co-operative Housing Societies collect a Sinking Fund?
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| Co-operative Housing Societies have a statutory obligation to collect a Sinking Fund. This is done so that in case the building needs to be repaired or reconstructed in the future, the society has sufficient funds to carry out the work. The amount to be contributed is decided by the General Body of the society; it should be at least ¼ percent per annum of the cost of each apartment, excluding the cost of the land. This fund may be used after a resolution is passed at the General Body meeting with the prior permission of the Registering Authority. This could be to carry out reconstruction, repairs, structural additions or alterations to the building as the architect thinks is required and certifies. |
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10. What is Corpus Fund ?
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| Corpus Fund is an emergency maintaince amount collected along with other components, which will be handed over to the association after formation. Association can utilize the funds for any emergency purposes like Major maintaince of the complex, painting of the building, replacement of lifts, generators etc., |
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11. Is the projects legally scrutinized?
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| In order to obtain unbiased view on the feasibility and legality, we engage national and international consultants (business, legal, and financial). |
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12. As any bank approved the project.?
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| The project has been approved by all leading financial institutions like HDFC, SBI, IDBI, ICICI etc., |
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13. What is the loan amount customer can avail?
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| Customers can avail finance upto 85% of the property cost based on their income. |
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14. How I can book my home at Oceanus?
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| Call us on +91-80-26688766 / +91-98454 45440 or email us on info@oceanus.co.in we will get back to you shortly. |
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15. Is their any modification permitted?
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| Modifications are permitted at extra cost after ascertaining the technical feasibility. |
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| NRI's |
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16. Do NRI's require permission of Reserve Bank to acquire immovable property in India?
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| No. NRI's do not require any permission to acquire any immovable property in India other than agricultural / plantation property or a farm house. |
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17. Do NRI's require permission of Reserve Bank to transfer immovable property in India?
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| No. NRI's do not require any permission to transfer any immovable property in India. Permission is required only in the case of transfering of agricultural or plantation property or farm house to another citizen of India NRI or PIO. |
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18. Do PIO's require permission of Reserve Bank to purchase immovable property in India for their residential use?
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| Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property other than agricultural land/farm house/plantation property, in India. They are, therefore, not required to obtain separate permission of Reserve Bank or file any declaration. |
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19. In what manner should the purchase consideration for the immovable property be paid by PIO's under the general permission?
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| The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from any non-resident accounts maintained with banks in India. |
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20. Can such property be sold without the permission of Reserve Bank?
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| Yes. Reserve Bank has granted general permission for sale of such property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India. |
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21. Can sale proceeds of such property if and when sold be remitted out of India?
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| In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a NRI or PIO, the authorised dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied: -
• The immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules/Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act, 1999;
• The amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in non-resident external account for acquisition of the property; and
• In case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.
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22. What other facilities are available for repatriation?
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| Authorised dealers can allow remittance up to USD 1 million for any purpose, per calendar year from balances in NRO accounts subject to payment of applicable taxes. The limit of USD 1 million per year includes sale proceeds of immovable properties acquired by the NRI/PIO's while they were resident in India and held for a period of 10 years and above. In case the property is sold after being held for less than 10 years, remittance can be made if the sale proceeds were held for the balance period in NRO account or in any other eligible instruments. |
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23. Can PIO's acquire or dispose of immovable property by way of gift?
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| Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of immovable properties other than agricultural land/farmhouse/plantation property by way of gift from or to an Indian citizen, NRI or PIO. |
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24. Can NRI's/PIO's rent out the properties (residential/commercial) if not required for immediate use?
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| Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income is eligible for repatriation. |
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25. Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?
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| Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to NRI's for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of loan margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investor's NRE/FCNR/NRO Accounts. |
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26. Can authorised dealers grant loans to NRIs for acquisition of a flat/house for residential purposes?
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| Authorised dealers have been granted permission to grant loans to NRI's for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts. |
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27. Can authorised dealers grant housing loan to NRI's where he is a principal borrower with his resident close relative as a co-applicant / guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?
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| Yes. Such housing loans availed in rupees can also be repaid by the close relatives in India of the borrower. |
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28. What are the guidelines for acquisition of agricultural land / plantation property / farmhouse by NRIs and foreign citizens of Indian origin?
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| All requests for acquisition of agricultural land / plantation property / farm house by any person resident outside India may be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001. |
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| MISCELLANEOUS |
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29. How is a lease agreement created?
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| A lease agreement can be reached in either of two ways, depending upon each case:
•In cases where the lease contract is from year-to-year / exceeding one year’s rent / reserving yearly rent, then a registered instrument can be created, which both the lessor and the lessee must execute.
•In cases other than the above, an oral agreement followed by delivery of possession is considered enough.
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30. What are the charges to be paid while gifting property?
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| When a gift of property is made, a gift deed needs to be made by a lawyer. Stamp duty on the market value of the property also needs to be paid, as well as the necessary registration charges.
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Email your Queries to info@oceanus.co.in |
+91 80 2668 8766
+91 80 2668 8878
info@oceanus.co.in