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GENERAL
What is meant by valuation of property?
The valuation process evaluates the market value
of the property. Demand and supply forces operating
in the market, as well as other factors like type
of property, quality of construction, its location,
the local infrastructure available, maintenance,
are all taken into consideration before the market
value is decided.
Which all bank are going
to fund the loans for the project?
Axis Bank, SBI, Citibank, Corporation Bank, ING
Vysya Bank, Canara Bank, HDFC bank, Deutsche bank,
has approved the project. Further if there are
any customers who want to go with a particular
bank we shall get the project approved by the
bank.
Who owns the land
for this site? How will you assure your customer
that there is no dispute on this land?
Ans: We are the absolute owners of the site. The
sale deed and all the necessary documents are
with us. It can be given to your lawyer for their
expert opinion. We have taken all the necessary
precautions to make sure that the land is free
from any litigation or any disputes. We have checked
the records and have taken the necessary documents
from the competent authorities.
How
will you assure your customer that the construction
and the approved plan match?
We will sale only what is approved. There would
be penthouses which would have attached terraces.Any
customer may inspect the approved plan and accordingly
take up the flat. The necessary setbacks will
be maintained from day one. We have no intention
of doing any kind of violations.
Some months back there were some issues
with new land registrations in Bangalore. Have
we taken care that we do not hit the issues encountered
in those cases.
Definitely. We have a clear title and the zoning
regulation has been taken care of. We do not fall
under the green belt or the agricultural zone.
The reason why our property is a little away is
because we skipped the green belt area. WE have
got the necessary documents for the same.
What is the delivery time and what is
the assurance for the same?
Regarding the completion of the project we are
having a team of people who have executed in excess
of 10 Lac sqft of residential space and coupled
that with our planning and focus we would be able
to complete it on time. We had initially set a
delivery time of July 2008, which has now been
revised to April 2008. The work progress at the
site is very good and way ahead of our schedule
How does property valuation help?
Typically, if a real estate agent is asked to
judge the value of a piece of property, he would
do so based on information of recent sales or
purchases of similar properties in that area.
Though
this may give a fair idea of the property’s
market value, an official property valuation
would carry more weight. E.g. if you need to
use this piece of property as a security against
a loan, the bank’s loan approval process
would be faster and smoother if the property
is certified by an official valuer. Many banks
now insist on valuation certificates before
issuing loans using properties as security.
The value thus certified may also have chances
of getting a higher amount of loan sanctioned.
Another
benefit of official valuation is that it is
a useful negotiating tool when selling the property.
Such
certification also becomes essential in situations
where the correct value of the property has
a legal bearing—such as, a will statement,
insurance papers, business balance sheets etc.
What
is the meaning of a property’s market
value? How is its stamp duty decided?
The price that a property can command in the
open market is known as its market value. Stamp
duty is based on the market value or the agreement
value of the property, whichever is greater.
What does the term ‘Leasehold
Property’ mean?
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.
What does the
term ‘Freehold Property’ mean?
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).
Are there any benefits in converting a leasehold
property to a freehold one?
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.
Are there any income tax considerations while
transferring newly acquired property?
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.
What constitutes conclusion of sale of a property?
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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