1. Which documents are to checked and verified before purchase of a property?
Before you purchase a flat, you have to look at the approved layout and building plan, title search conducted by a competent advocate, ownership documents, Environmental clearance, Intimation of Disapproval, Commencement certificate etc. You may contact an advocate before purchasing a property to get detail advice.
2. What the difference between built up, super built up and carpet area?
Carpet area: An area of an apartment which doesn’t include the area of the walls.
Built up area: This includes area of the wall also.
Super Built up area: This includes the built up area along with common spaces such as lobby, lifts, stairs etc. This term is applicable to multi dwelling units
3. Who is liable to pay stamp duty and in whose name are the stamps required to be purchased?
The liability of paying Stamp Duty is that of the buyer unless there is an agreement to the contrary. Section 30, of the Bombay Stamp Act, 1958 states the liability for payment of Stamp Duty.
The Stamps are required to be purchased in the name of any one of the executors to the instrument.
4. What is meant by the market value of property and is stamp duty payable on the market value 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.
5. Can one obtain refund if the agreement has not been signed between both the parties & have paid the stamp duty?
When one person possessing stamp or stamps which have been spoiled or rendered unfit or useless for the parties intended or the person does not require immediate use of the said stamps then such person should deliver the above said stamps to the Collector. The person has to make an application under Sec. 52 of the Bombay Stamp Act and the person should also submit the affidavit mentioning the reasons for which the stamps had been purchased and the reasons why the refund application is being made.
If the applicant can convince the Collector then refund of the stamps could be obtained only if: The application is made within six months from the date of the purchase of stamps. The Stamps should have been purchased by such person with a bonafide intention. None of the parties should have signed the paper on which the stamps have been fixed. On receipt of such application, the Collector is empowered to refund to the said person the value of said stamp deducing there from said amount as prescribed by the competent authorities.
6. Will stamp duty have to be paid if a flat is settled through a deed & transferred amongst family members?
Yes, as per the provisions of Bombay Stamp Act, Stamp Duty will have to be paid on a deed of Family Settlement.
7. What 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, and Power of Attorney, Settlement and Deed and Transfer of Lease attract Stamp Duty on market value of the property.
8. Who is the appropriate authority for knowing the market value of property?
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.
9. Can a property transaction be done by someone on owner’s behalf?
Yes. Though Power Of Attorney subject to eligibility of POA holder and POA content.
For all practical purposes, you can give a specific power of attorney to someone, so that in your absence, things like registration, possession, execution of agreement for sale, agreement of leave and license etc, can be taken care. You can give a very specific POA to someone e.g. only for buying, or leasing, etc. you could fine tune the rights you would like to give out and clear that up
10. What is meant by free hold land?
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 not lessor / lessee involved.