Frequently Asked Question
FAQs - General
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 evaluator. 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.
The main types of real estate are:
- Residential: Homes, apartments, villas, etc.
- Commercial: Offices, retail spaces, hotels, etc.
- Industrial: Factories, warehouses, and logistics facilities.
- Land: Vacant land, agricultural plots, or undeveloped property.
Key factors to consider include:
- Location and neighborhood.
- Property type (apartment, villa, etc.).
- Budget and financing options.
- Developer reputation and legal clearances.
- Amenities and future resale value.
Typically, you’ll need:
- Sale agreement.
- Title deed.
- Encumbrance certificate.
- Property tax receipts.
- Government ID and address proof.
Conduct due diligence or hire a legal expert to verify the title deed, encumbrance certificate, and any pending litigations.
FAQs – Residential Properties
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
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
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.
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.
The actual area owned by the individual is the basis for calculation of maintenance charge.
FAQs – Commercial Properties
Commercial properties are real estate assets used for business purposes, such as office spaces, retail outlets, warehouses, industrial facilities, and multi-family residential buildings.
Key factors include:
- Location and accessibility.
- Tenant demand and market trends.
- Property type and intended use.
- Expected return on investment (ROI) and rental yields.
- Legal clearances and documentation.
The value is influenced by location, property type, infrastructure, current rental income, potential for appreciation, and market conditions.
Both individuals and business entities can purchase commercial properties. However, certain financing and taxation benefits may apply to business entities.
A commercial lease is a legal agreement between a property owner (landlord) and a business (tenant) to use the property for business purposes for a specified period.