Faq

1. What is the definition of Carpet Area ?

Carpet Area: shall mean net usable floor area of the Apartment/Flat, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the Apartment/Flat.

2. What is the difference between the lease agreement and the Leave and License agreement?

A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement. License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration. A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.

3. What are the implications of entering into a lease agreement?

There are various implications of entering into a lease agreement such as you have to pay the stamp duty, the lease agreement has to be registered etc.

4. Does a foreign citizen of non-Indian origin require permission from the Reserve Bank of India (RBI) for acquisition of immovable property?

Does a foreign citizen of non-Indian origin require permission from the Reserve Bank of India (RBI) for acquisition of immovable property?

5. What is the definition of Non Resident Indian (NRI)?

NRIs can be defined as:

»  Indian citizens who stay in a foreign country for employment.

»  Indian citizens carrying on their businesses or vocations

»  Indian citizens abroad for any other purpose in the circumstances indicating a definite intention to stay outside India for an indefinite period NRIs can also be:

»  Indian citizens working abroad on assignment with foreign governments or international agencies.

»  Officials of central and state government and public sector undertakings deputed abroad on temporary assignments or posted to their offices abroad.

»  Indians who have settled abroad permanently or gone abroad on immigration.

Non-resident Indians become residents of India once they come back to India to engage in employment, for carrying on any business or vocation, or for any other purpose indicating a definite intention to stay in India for an indefinite period.

6. Why is it considered necessary to register a property? What is the purpose of registration?

By registering the transaction of an immovable property, it becomes permanent public record. Title or interest can be acquired only if the deed is registered. /p>

7. I have a flat which I want to sell and buy a new flat bigger in area. What are my tax implications with regard to capital gains?

If you purchase a new flat within two years of the date of sale of the original flat and invest the entire amount of capital gained into the new flat, you will not have to pay any capital gains tax.

8. Are there any new provisions?

There is no new provision in the new Rent Act regarding the prescribed percentage of tenants willing to form a society.

9. Who does a group of tenants of an old building approach to be able to form a society without the concerned landlord's permission?

Approach the Registrar of Co-Operative Societies and file the various relevant documents.

10. In case a tenant is not protected by the Rent Act, what is the procedure to ask him to vacate and what is the notice period that is required to be given?

A notice is sent to the tenant, failing which a court case may be filed. It usually takes 10 to 20 years to reach a verdict.

11. How is the market rent determined?

There is no prescribed norm for determining the market rent rate though it can be easily found out by approaching individuals such as brokers, registration authority, etc.