Advanced 9 Terms to Boost your Real Estate Knowledge
Picking off from where we left off last time we are here to provide you with more real estate gyaan in the form of another 9 essential terms you ought to know to be an informed consumer. So let’s get into it, shall we?
As the name implies, it is the fees one has to pay when the property is being registered in your name, to name you as the undisputed holder of the property. The registration charges vary from state to state, it is around 5% of the property value in Karnataka, and in some states like Maharashtra it is around 1%.
A gift deed is used when one wishes to transfer the property in question without involving any money. A gift deed is most often instated when family members wish to pass on their property to their loved ones. One has to be aware of the fact that stamp duty is still applicable to a property transferred via a gift deed.
Power of Attorney
Power of attorney is when you legally nominate someone to represent you when you are unavailable for whatever reason. The person appointed through power of attorney usually has full powers of representation and execution on par with the original holder.
A sale deed is a document that testifies one party has sold/transferred to another. Only once both the parties sign the sale deed, is the deal considered to be legal and valid. A sale deed contains a lot of useful information like property size and measurements, ownership history, etc. Not only this but the stamp duty and registration charges are calculable based on this document. This makes it one of the most essential papers when it comes to your property.
With the implementation of GST in 2017 across the nation, a uniform tax is being levied on property. A tax of 18% GST is being implemented on property sales, CGST of 9% and SGST of 9% respectively. Stamp duty and property tax at the moment are out of the purview of GST, but will be subsumed later.
The conveyance deed is the document that transfers the ownership of the property in question to a housing society. This deed is only executed once the project is completed and is essential as without it the property would still belong to the builder in question.
A completion certificate comes into question only when all the construction work has been completed by the builder. It is at this point that the local municipal body comes down to the property for an inspection and declares it to be within the norms of property construction.
It is a legal document that gives the holder the right to occupy the property in question. Builders usually issue this certificate to people who have pre-booked a property once the construction is completed. It is important to note that a builder cannot issue a possession certificate without a completion certificate.
Ready- Reckoner Rates or Guidelines Value
These are the general pricing guidelines that the government sets the value of property in a particular area. Builders always charge a premium over these rates for the properties that they construct and sell. The registration charges and stamp duties are chargeable on these minimum guidelines.
This concludes our little tour of the real estate world, we hope you have learned something of value along the way.
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