BUYERS

Guide

TO BUY OR NOT?

INDEX

01

Owning Vs Renting?
Investing in Real estate? Dos & Donts

HOME BUYING PROCESS

03

11

How to start?
Everything first time home buyers need to know
Things to consider before investing in a plot
All about building approvals
Check your payment plan
Final property purchase checklist
Choose the right location
Technology that helps with property search
Seek expert assistance

THE LOAN PROCESS

Pre-approved loans
Documents required
Pre-Payment of loan
EMI
Home Loan Insurance

13

NEGOTIATING & CLOSING THE DEAL

14

POST PURCHASE
Legal Assistance & registry and documentation
Purchasing land from NRI Owner

19
16

RETURN ON INVESTMENT
& WHEN TO EXIT

VAASTU & FENG SHUI

Guidelines to ensure your
property is vaastu compliant
Doing up your homes with Feng Shui

How to make the most of your investment?

What is the right time to exit?

18

GUIDELINES FOR NRIs

SELLING PROPERTY
IN INDIA

21

GLOSSARY

TO BUY OR NOT
1. OWNING VS. RENTING
Reasons For Renting
A question that plagues every potential first time home buyers mind is this - Should I just stay in a rented accommodation or should I take the plunge
and buy a property? There are advantages and disadvantages attached to both these property decisions. One must take certain factors into
consideration before making this crucial commitment as it will have a bearing on your overall financial well-being.

Flexibility
Renting a property gives a level of flexibility that owning a property cannot. If you are thinking about switching jobs and moving to a new city then
obviously purchasing a property is not something you should consider. The same applies if you dont have a stable job. Buying a property ties you
down to a specific location. While renting a property you can choose one which is close to work and within city limits.

Low rental rates

Rental rates are low in India. Typically they amount to only 3 to 4% of the value of the property. One can save a huge chunk of money and if this
is invested wisely one can reap great benefits. If one is to think about purchasing property through home loans, a down payment which equals to
20% of the value of the property has to be made. And this is only if your credit rating is good. If it isnt, then the bank might ask you to pay more.
Then come the payments that need to go towards the registration process which would include stamp duty, registration fee etc. You would need to
deal with the EMIs (Equated Monthly Instalment) as well. Interest rates on loans tend to fluctuate and you might have to shell out more money down
the line. This is not to say that rental rates dont tend to fluctuate because of inflation. But if you dont have the kind of money that is required for
purchasing a property then renting might be the way to go.

No maintenance costs
Maintaining homes is an expensive affair and can eat up your savings. If you rent a property you dont have to worry about maintaining it as the
responsibility falls on the landlord to fix any problems that may arise.

Reason For Buying

01

Asset

Tax deductions

Owning a property is one of the biggest investments a person can make

If you have taken a home loan on a property you are going to live in, the

in his/her lifetime. Properties tend to witness capital appreciation over

principal amount repaid up to 1.5 lakh qualifies for deduction under

time and are hence considered to be one of the top investment choices

Section 80C; while up to 2 lakhs of interest paid is tax-deductible under

alongside gold and mutual funds.

Section 24.

Stability

Control over property

Having a roof over your head tends to give you certain stability. You dont

You have creative control over the property you own, which is not possible

have to deal with pesky landlords and their whims and fancies. When you

with a rented property. If you want to carry out even the tiniest

know that you are going to lay down your roots in a particular city, owning

modification to your rented accommodation you will have to get the go

a home there makes more sense.

ahead from the landlord. That is not the case when you own a home.

2. INVESTING IN REAL ESTATE?

DOS AND DON'TS
Investing in real estate can be a very tricky proposition. In most instances people tend to put in all their savings, plus take loans to purchase a property. This being
the case, one has to exercise extreme caution at all stages of the purchase, to ensure that the money one sinks into real estate does not go to waste.

Budget
Before taking the plunge and buying the property you have your eyes on, it is essential
to get your finances in order. Set yourself a budget and try not to stray far away from
it. Remember not to spend money that you cannot afford to spend in the first place.
You should ensure that the EMI going out of your pocket is not more than 40% of your
monthly income.

Research
Now that you have gotten your finances in order, it is important for you to do your
homework. You will know your requirements, so work with localities which are a
match for those requirements. Some of the basic criterias one should keep in mind
while researching are:
Location
Access
Existing and proposed infrastructure projects
Connectivity
Presence of social infrastructure
Safety
It is best not to invest in far flung locales which lack even basic amenities such as roads, water supply and drainage system. Do not get swayed by promises of upcoming
infrastructural projects and invest your money. Infrastructural projects take time to kick off and it is best not to pin too much hope when you are yet to see proof.
IndiaProperty realizes the crucial part these factors play when it comes to making property choices. The site provides expert analysis of localities based on these factors through
micro market reports and its locality pages.

Checking credentials of the builder

The real estate industry is littered with builders who are upstarts and are unreliable. If you come across an offer that is too good to be true from a small time builder, it is best
not to funnel your hard earned money into that project. The best way to go about checking the credibility of builders is to look at their past projects. This will give you a clear
idea about how a particular builder works and if you can trust him with your money.

Legal documents
Title deeds are the key to any property transaction. If the seller does not have a clear title deed, then do not purchase the property
Absence of a clear and marketable title deed is a deal breaker as it will lead to legal hassles in the future
Insist on seeing the original title deed and have it verified by your attorney before buying the property
Ensure that all clearances related to the property are in place before you acquire the property
If you are looking to purchase an under-construction property, get the builder to handover the allotment letter and the development agreement
The allotment letter has details such as the price of the property, floor plan, delivery date of the project and details of the liability incurred
by the builder if there is a delay in delivering the project
The development agreement lists out the terms and conditions under which the landowner has allowed the builder to use his property
Ensure that all the taxes related to the property you are about to purchase have been cleared before you actually buy the asset
Whenever in doubt, it is always advisable to take expert assistance

Delay in delivery
When you decide to purchase an under-construction property, chances are that the project may be delayed. A delay of 6 months is acceptable but anything that goes beyond
a year or more is bad news for you. Picking projects which are in the pre-launch stage are considered to be very risky. To mitigate such risks, check the delivery track record
of the developer and look out for projects which are in the under-construction or ready to occupy stage.

02

HOME BUYING PROCESS

1. HOW TO START?
Starting your property search is always a tough task. You might come across a number of unfamiliar circumstances and situations. It can be an
intimidating process, especially when there are so many legal and technical jargons that are thrown at you. Be prepared to handle any legalities
that come your way. Have this guide handy for any property search queries and requirements.

Types of property ownership:

In India, two types of property ownership rights exist- freehold and leasehold.

A freehold property
ownership is the most common
form of property ownership in
India. It essentially means that the
buyer has complete legal ownership
rights over the property. He can stay,
sell or transfer the ownership to
another party.

Freehold property

A freehold property
makes for a better
investment choice as there is
no uncertainty about the future
of the property. This ensures
better marketability of the
property. It can also be sold
or mortgaged in
a financial crisis.

Investment choice

In a
leasehold form of
property ownership, you just
own the building and not the land.
This ownership is for a stipulated
period of time ranging up to 99
years. Once the set period in the
lease expires, the property
reverts to the original
owner.

Leasehold Property

Leasehold properties
cannot
be
transferred
easily like freehold properties.
They always require a Power of
Attorney
for
conducting
transactions, which ceases to
exist with the death of the
owner or the seller.

Transfer of property

A freehold property
gives the complete legal
ownership of the property to
the buyer, whereas in a
leasehold property ownership,
the buyer is not an owner but
only a lessee, with
limited rights.

Absolute ownership

Experts believe that given a choice,

a buyer should prefer freehold property
over leasehold as the title is absolute and

If your property
requirement is short
term or only for a few
years, you can easily get
access to a property by
way of negotiating
a lease.

Short term investment

03

If you
are delaying your
decision to buy a property
just because the price is too high,
but you are ready to sacrifice your
absolute ownership, you can easily
get access to the property by
way of negotiating lease.

Financial limitations

clear. Additionally, freehold properties

are more stable and are likely to increase
in value in the longer term. Also a
freehold property has better marketability
and can be sold, mortgaged or kept for
standing security, which cannot be done
with leasehold property.

2. EVERYTHING FIRST TIME HOME BUYERS NEED TO KNOW

In India the profile, age and socio-economic status of the first-time home owner is gradually changing. Planning to buy a home starts very early on.
However, what remains unchanged is the hesitation and trepidation that comes with making such a major decision. First-time home buyers in India need a lot of caution
and due diligence before signing on the dotted lines of a home buyers agreement. The following tips are intended to guide first time home buyers as they finalise one
of the most crucial investments.

Financial planning
It is essential to ensure proper financial planning before you make the decision to invest in a property. The first step would be to review your current financial obligations
such as student loans, life insurance or any other commitments to get an essence of your true monthly income. Your budget for buying your home should be based on
your household budget and how much money you can afford to put aside for the EMI of a home loan. Besides the EMI you should have a healthy savings account that
can pay for the additional incidentals such as stamp duty, registration, car parking, club house charges and other sundry charges by the builder. An important advice
by financial experts is to set aside 4 to 5 EMIs as reserve funds for unforeseen circumstances such as loss of employment or any situation that exerts pressure on financial
resources available at your disposal.

Assess your future needs and goals

When deciding to invest in a property, its important to not only have a clear picture of your present needs but also take into account your future needs and goals.
Some of us are just looking for a home for our family, some of us want capital appreciation through a long term investment. Some just want to be part of a new upcoming
complex or some want to move closer to their workplace. When we invest we should be clear about our goals to ensure we make an informed choice.
For e.g. if you are planning on raising a family, investing in a bigger house, with good schools and parks in the vicinity would be an important consideration.

Learn about different interest rate options

A common dilemma for the first-time home investor is choosing between a fixed rate of interest and a floating rate of interest. A consumer has to choose between peace of
mind by opting for fixed home loan where the interest rate remains constant during the entire loan tenure and does not change with market fluctuation or should they take a
risk by going for floating loans. In this scenario the interest rate is dependent on the market and fluctuates according to the economic situation in the country.
A new option that is growing in popularity is the fixed-floating home loans that come with a fixed interest rate in the initial years and floating rates thereafter. This option gives
customers stability on their EMI outflows for the first few years, thus helping them plan finances better and provides protection against future fluctuations in interest rates.

04

Improve your CIBIL score

Understand your payment plan

CIBIL is Indias first credit information company, also commonly referred to

For a new property it is also advisable to check with the builder on

as a Credit Bureau. The CIBIL TransUnion Score plays a critical role in the

a construction-linked payment plan or a time-linked payment plan and the

loan application process. After an applicant fills out the home loan

cash versus cheque component. This will have an effect on your cash flow

application form and hands it over to the lender, the credit score and

and other aspects of your personal finance.

credit report of the applicant is immediately checked. If the credit score is

low, the lender may not even consider the application further and reject it.

A. Construction linked payment plan

However if the applicant has a good credit score, he is considered

Under this plan you are paying an initial booking amount

credit-worthy and this improves the chances of the loan being approved.

upfront while the rest is linked to construction milestones, say 10% with

A high CIBIL score also can make the loan available at a cheaper

each floor constructed.

interest rate.

B. Time linked payment plan

Go loan shopping

You pay according to a set timetable, whether the construction is on time or

Shopping around for a home loan will give you a great market insight

not. Under this plan you are contractually bound to pay your instalments,

and help you select the best suited financing option. Comparing loans

even though the property has been delayed.

and negotiating with banks can save you a lot of money. Once you know

However, the RBI recently issued a circular asking banks to desist from

what each bank has to offer in terms of rates and fees, negotiate for the

upfront disbursal of sanctioned housing loans to builders and instead link

best deal. These days, banks also offer home loan insurance as a bundled

housing loans to stages of construction of a project to protect the home

product along with your home loan that protects your family from loan

buyer and the lender from additional risks. This is primarily to protect

liabilities in case of your unfortunate demise within the policy term.

the home-buyers against endless delays in the construction of new projects.

When selecting for a lender, it is also advisable to check the prepayment

penalty and foreclosure charges. You can also consider co-ownership

Legal due diligence on the property

between two family members to get a bigger loan amount.

One must also check all the sanctions, plan approvals and agreements to
ensure that the builder has completed regulatory and legislative

Get a pre-approved loan

obligations before investing in a property. Any deficiency on this front

A pre-approved home loan means that the bank or financial institution has

can lead to serious consequences for the buyer.

carried out their due diligence checks on your credit report and have made
a virtual confirmation of the loan and the loan amount. This pre-approved

Carpet, built-up and super built-up area

home loan boosts the confidence level of the purchaser and gives him

During purchase of a flat/property, there should be no ambiguity related

a clear idea of the budget within which he will be able to buy a house.

to carpet area, built-up area and super built-up area.

The buyer will also have clarity in terms of EMIs that will need to be paid and

The carpet area is the space available for flooring a carpet,

can accordingly plan their finances. However the buyer must be aware that
once he gets the pre-approval for a loan, he has only a limited time-frame
within which to finalise the property, failing which the pre-approval can be
cancelled.

the built-up area is the carpet area including the wall,

balcony space and other areas.
The super built up area is the built area plus the corridor,
parking space etc. It also includes the area for common use like lobby,
lifts, staircase and alley.

Research locations

This difference between the super-built up and carpet area is called

Location is another key factor to consider before making an investment.

loading. When you are buying a property, it is important to ensure that

It is always prudent to buy in a high-growth area where there is potential

you are paying for the carpet area and not for the super built up area

for growth and subsequent capital gains. Keep things like connectivity to

that sometimes has a loading of nearly 30-40%.

business areas, proximity to educational institutions, malls, hospitals and

other important social infrastructure in mind. It is also important to be

Negotiate

aware of future planned developments in the area that could have

Do not hesitate to negotiate better rates. Sometimes builders might be

a positive or detrimental effect on the future value of the property. At the

willing to offer promotional discounts during festive seasons or if their

same time, the location should be suited to your personal requirements

sales are slow. Also when buying a new property in the initial stages of

and budget. A healthy mix of the above two considerations will guide you

construction, do enquire about special pre-launch and launch

towards your ideal location.

offers and prices.

Credibility of the builder

Allotment letter

Before purchasing a property one should look into the credibility of the

Once you have selected a property and made the initial payment, you

builder. This essentially means checking on the developers past projects,

will receive an allotment letter from the builder. This allotment letter

their previous projects, quality of construction, rate of appreciation in

includes the details of the flat that has been allotted to you, such as the flat

value, current demand in the market and number of future projects that are

number, area, price the payment details, any extra charges levied to you

being undertaken. It is also an added advantage if the developer is

on amenities such as car parking, club membership and maintenance

affiliated with a governing body like CREDAI.

charges to be levied at time of occupancy.

If you have a preference for a certain floor or view, then you must request this
from the builder at the time of the initial application with the builder. Once the
allotment letter is given to you, your flexibility to change your unit might be limited.

05

Site visits
Making regular site visits to your property when it is under construction is important so that you can check the status of construction and quality of materials used.
If you want to make minor non-structural changes such as the layout of the kitchen or change the plumbing fixtures, this would be the best time to get it done.

Sale deed
A sale deed is one of the most valuable legal documents in purchase or sale of a property. It is governed by the Registration Act and is an important document for
both the buyer and the seller. The purchase or sale of property is not legally complete until a sale deed is signed between the buyer and the seller. Usually a sale
deed is signed only after both the parties are satisfied and comply with the terms and conditions in the agreement.

Verify all legal documents

There are a lot of important legal documents without which the sale of a property is not complete. It is the duty of the buyers to verify all these documents and ensure that
they are duly signed. Some of these legal documents include - share certificate, sale agreement, society documents, sanction plans and encumbrance certificate.

Possession and registration

The final step that will complete the purchasing process is possession and registration. Possession is the physical transfer of the property, but is not sufficient to
establish legal transfer of ownership. For this you will have to get the property registered in your name with the local authority, with the seller documenting that the
property is being transferred to you. At the time of registration you will also have to pay a stamp duty which is a government tax levied on property transactions.

Maintenance by the builder

When the construction is complete the developer receives an Occupancy Certificate (O.C) by the local body that confirms the hand-over of the property to the buyer.
From the date of receiving this certificate to the next 18 months the developer is responsible for the maintenance of the building. This includes general cleaning,
security, payment of electricity charges for the common areas, property tax, running costs of generator sets and any repair or maintenance works.

Formation of the housing society

The developer initiates the formation of a housing society. The builder normally creates a bank account in the name of the society and transfers the unspent money
on the project. The society elects it representatives and takes the responsibility of the maintenance of the building and collection of maintenance charges.

Property search route

Newspapers today are cluttered with property ads, realty brokers have offices in every site and there is no dearth of property information online. But with todays
busy schedules, sieving through the market and gathering information can be a daunting task. Understanding this challenge, IndiaProperty.com has designed a
special tool to guide you as you navigate the property markets. Assisted Property is a unique service that assigns a dedicated property search manager to research,
review and shortlist properties suited to your requirements.

To know more
call Assisted Property on
3333 7777
Not only will this service help you save valuable time in short listing properties,
it will also book site visits for you, evaluate your selected property and help you
source home loan and legal assistance if needed.

06

3. THINGS TO CONSIDER BEFORE INVESTING IN A PLOT

Investing in plots has always been considered a lucrative financial option. While apartments and villas have been the most popular property
investment choices, there are many buyers who prefer investing in plots especially for the capital appreciation it offers. A plot that is bought in a
high growth neighbourhood or a new market, is attractive for all sectors - from residential to commercial. As the suburb nears its growth potential
and begins to saturate, plots increase in value and offer good value for the seller. Any new infrastructure development in a neighbourhood will also
drive prices upwards. However when buying a plot, it is important to understand the various factors that influence the price of plots.

Location

Floor Space Index (FSI)

This is the most primary consideration when determining the price of the

The floor space index or FSI gives an indication of how much built up space

property. The prevalent price trends will also be applicable to the plot.

can be constructed based on different parameters of setbacks, road widths

In a high growth or a popular location with many new infrastructure

and ofcourse, the plot size. This is often determined by the local authorities

development, the prices will be higher than in an emerging neighbourhood.

and has a direct effect on the price of the plot. The higher the FSI, the
greater is the space available for construction and hence higher the value.

Connectivity
Another prime determinant of the price of a plot is the connectivity factor.

Soil Type

This is not only to the main roads and highways but also the other parts of

It is necessary to ascertain the soil type and ground water of a plot before

city through road and rail.

buying it. If the plot is unsuitable for deep digging, unstable or extremely
rocky, it would make the plot geologically unstable. This means the ground

07

Civic Infrastructure

would not be able to support any structure. The absence of sufficient

The development of local civic infrastructure with amenities like water

ground water would also be a major drawback, negatively effecting

supply, electricity, power, sanitation, drainage system, street lights and

the price of a plot. Before investing in a plot, it is essential to do

mobile coverage make for a more appealing plot investment when

a basic site visit to understand the property with reference to the metrics

compared to buying land without any of these basic civic amenities.

given above.

4. ALL ABOUT
BUILDING APPROVALS
Getting the necessary approvals to construct is one of the toughest task when it
comes to buying a property. Before getting to the construction, you have to check
the land title to see if it is clear. If the title is not clear, the project might not take off
and the investor will land in trouble. Just remember that there are a number of
agencies is involved in the approval game and the investor will be in trouble even
if one approval has been withheld. Delays in project approvals translate into an
escalation of 35-40% in the construction costs. The customers can also benefit with
a saving of 15-25% merely by cutting down the delays in the approval processes.

Why do you need approval?

For multi-storied apartments
In case of a big residential projects, 40 different approvals are required from central
and state government agencies. Approvals are required from central and state
government agencies. Approvals are required for land conversion and land use as
well as for environmental clearance. These two categories take the most amount of
time to obtain. In the case of tall buildings in the vicinity, approval has to be obtained
from the Airport Authority of India, if the building is to developed near a heritage
building, then the approval has to come from the Archaeological Survey of India and
so on. Each agency will study the impact of the project and then approve it.
Approvals have to be obtained by the builder. Before you enter into an
agreement with the builder insist that he shows all the letters of approval from the
various government agencies. It is the best if you have a written agreement with
the developer. The agreement should clearly set out the following:
Specification of the apartments.
Terms and conditions
Payment plans
Date on which the builders will hand over the apartment
Penalty clause if either party defaults
Ask if there are any hidden costs as otherwise you
may be in for rude surprise later on.

For plots
If the land has been purchased though a government agency, such as the City &
Industrial Development Corporation (CIDCO) in Navi Mumbai or the Delhi
Development Authority (DDA) in Delhi, ask for the allotment letter.If the land is
acquired from a farmer, ask for the title deed which mentions his name and how
he came to inherit the property.

For resale properties

In case of an old house, the buyer must get the following:
Vacant possession - it refers to a legal obligation to ensure that the property
is a state fit to be occupied at a given point of time.
Encumbrance certificate (EC) - It is an evidence that the property
in question is free any monetary and legal liabilities.
Property tax receipts.
In case of a newly constructed house, one should ask for Occupation Certificate
(OC), to make sure that sewage, water and electricity connections are in place.
The OC from a government agency is important as it means that the building is fit
for human habitation and that all the approvals have been obtained and that the
builder has kept all the norms.

08

In case of purchasing a resale apartment, you must ask for the share certificate
which is given by the society. The share has to be transferred to your name and
this certificate will be part of the ownership deed. You will have to check the No
objection certificate (NOC) issued by the society.

Buying though power of attorney

Purchasing a property can also be done through power of attorney. In most
cases it is done to evade stamp duty. The title of the property remains in the name
of the original owner but the right to use and enjoyment of the property goes with
the buyer. The buyer can also transfer the land to another buyer later on. But the
title will remain in the name of the original owner. This leads to fraud and is one
reason why banks dont lend to people whose land has been purchased through
power of attorney. It is always better invest in a freehold property from a person
who legally owns it and register it in your own name.

Other approvals
Completion certificate.
The completion certificate issued by the municipality or the corporation is easily
the most important approval which has to be got. This certificate will prove that
the builder has complied with rules such as height of building, distance from the
road and adherence to plan. The occupation certificate should also verified to
ensure sewage, water and electricity connections.

These are few approvals are a must before any project gets
the green signal:
Building plan and floor plan approvals.
Structural safety certificate.
NOC ( No Objection certificate ) from the civic authority.
Urban land ceiling certificate
Commencement certificate.
Title deed.
Occupation certificate.
A team at AssistedProperty carries out a thorough check to see if a property has
received all the approvals listed here. AssistedProperty only recommends
properties which are approved by the government.
Sign-up with AssistedProperty today or call the IndiaProperty customer
services team on (+91) 9281 00 11 11 to avail this service.

5. CHECK YOUR
PAYMENT PLAN

In case of a township having multiple towers, the buyer should ensure

Over the last decade, the scale of development in all Indian Tier I and Tier

misleading him. Also, at regular intervals especially before releasing the

II cities has been colossal. In recent times, the real estate sector has proven

next payment, a buyer should open and check his payment plan to verify

itself to be a lucrative investment platform. Real estate also follows the high

the agreed upon timelines. For a better home buying experience - be an

risk-high return game motivating buyers to invest in a property during

informed and active customer rather than an ignorant one.

early stages of construction for higher returns.

With increasing borrowing rate from financial institutions, developers
have started devising new schemes to fund their projects. They offer

that he is paying as per progress of his tower and the developer is not

6. FINAL PROPERTY
PURCHASE CHECKLIST
The task of buying a property is tedious. The buyer must not base his

innovative payment plans for the buyers. In reality, sometimes these plans

property buying decision on locality and budget alone. He must

usually end up entrapping the buyer.

consider other critical aspects such as the appreciation value of the

The most widely used payment plans today are the 80:20 Plan, Flexi Plan,

property, investment benefits from that property, builder reputation,

Down Payment Plan and Construction Linked Plan. With difference in their

home loan approvals and the legal hassles involved, if any.

execution all these payment plans target buyers for bulk payments.

So here is a check list for you that will come in handy while you buy your

80:20 Plan

property.

This plan is similar to the Subvention Plan, except the buyer pays 20% of

Parties involved in the property purchase

the property value at the time of booking and rest is paid by the bank. The

Check if the property that you wish to purchase is in the name of the

base price for such schemes is higher compared to the actual base price

sell or if there is a joint venture development involved. The name and

for the project. Also, such projects have higher probability of getting

land title must be in the name of the seller.

delayed. Moreover, even after 2-3 years the principal loan amount for the

Get the identity and address proof of the seller.

buyer remains the same. So, eventually you are paying more as cost of the

To avoid any future disputes from children of the seller (who are not

property is higher than normal and so is the interest paid.

Down payment plan

Here the buyer pays 95% of the property value during initial months of
booking (usually within 1-3 months duration). In such cases the builder
gives a discount to the buyer (around 10-15% on the base price).

Flexi plan

minors), their signature must be obtained on the bond/agreement.

Any claim over the property by blood relatives of the seller, in the future,
must be handled by the seller and a clause ensuring the same must be
inserted in the sale deed.
Through every stage of negotiation and purchase, check to see if there
are any third party interests, suppression of previous transaction, prior
agreement or litigations involved.

Its a combination plan where the buyer pays close to 40-50% of the

Previous dues paid and settled

property value initially and the balance amount is paid in equal

Check if all dues like Land Revenue, Municipal Tax, Water Tax, Electricity

instalments or the balance amount gets coupled to the construction

linked plan. Here also buyer is given a discount.

Construction Linked Plan

As the name suggests after booking the property, the disbursement of
future payment is dependent on the construction of the property. Usually

Board Charges etc. have been paid before the purchase is made.
Also check if any loan has been obtained on the property. If yes, then
include a clause in the sale deed stating that the seller is responsible for
all the dues dated before the purchase.
In case of future disputes involving the seller, add a clause in the deed
holding him responsible to clear and settle all such disputes.

these stages are as per laying of the structural slab at various levels. But
for under construction linked plans, around 80-90% of the payment is

Important Documents

taken by the developer within first few years of the purchase and mostly

Ask for the parental document

post structural work show a slow progress. Under normal circumstances a

construction linked plan is logical as the payments are disbursed in parts
and interest paid is less than other plans. Also if the buyer has savings in
the future he neednt use the whole loan value.

Risks involved
Many times when projects face heavy execution delays, there are
chances of developers taking the buyers for a ride. With no progress

the property - door/flat/Plot no., land area etc.

Obtain the No Encumbrance Certificate.
Obtain receipts of all payments made and the receipts
of tax payments made - water, property, corporation,
municipality, electricity, revenue etc. onto the date of purchase.
Confirm the originality of stamp papers. Check to see if the

or super slow progress of the project, huge sum of buyers money gets

date of purchase of the stamp paper matches the date of documents.

trapped. In the end a buyer pays EMIs or higher interest on loan, but

Now that you have a checklist, what are you waiting for?

has no clue when he would get possession of his house.

Its a buyers duty to keep his eyes open even after purchasing the
property. He should at regular time intervals visit the project site to check
the progress of the project. Also keeping a record in form of pictures is
a good option to compare the projects progress over time. In cases
where a buyer is an NRI or lives in some other city he should make sure
that a friend or relative is doing the same on his behalf.

09

(also called the moola pathram in many states)

The sale deed must clearly show the details of

Start your property search now with AssistedProperty.com. Just log onto
www.assistedproperty.com and let us help you find your perfect home.

8. TECHNOLOGY THAT HELPS

WITH PROPERTY SEARCH
A) Just a click away from locality info: Online real estate portals today
employ a 360 degree approach to property search. You can get all the
information about each locality in the dedicated locality pages rating each area
based on parameters like sanitation, utility, mobility, public amenities and
environment; all of which are indispensable in determining the overall appeal of
the locality. This data is obtained by exhaustive customer surveys conducted in
the respective city. For e.g., KYN (Know Your Neighbourhood) feature on
IndiaProperty.com gives the users a comprehensive analysis of the location of
their choice, so that they can weigh and compare the information about localities
before investing.

7. CHOOSE THE RIGHT LOCATION

When and where to buy?
Location is one of the most important considerations to make when purchasing
your home. Irrespective of whether you are purchasing your home for an
investment or as an end user, the location of your home not only determines the
future value of investment, but it also affects your familys lifestyle. We bring you
a few factors to consider when selecting a location.
Neighbourhood: While selecting the neighbourhood of your future home,it is
imperative to select one that matches your lifestyle and personalitya place
where you will be comfortable and will meet likeminded people.If you are
moving to a completely new locality do your research to get more information
about the locality including present issues, planned developments etc.
Future Infrastructural Developments: Over the past decade, it has been
noticed that infrastructural improvements have had a direct and positive effect
on property prices. This is especially evident in the case of upcoming metros,
airports and highways driving growth in city suburbs across India. It is therefore
prudent to check for planned developments around the locality to ensure you get

In todays day and age, everyone is constantly connected using their smart

the maximum appreciation from your investment.

Social Infrastructure:

There

is

strong

B) Your smart phone is the new property search tool:

connection

between

the

phone. Real estate portals give you an option to search for properties on-the-go.

socialinfrastructure in a neighbourhood and the emotional and social well-being

Get your property listings, post requirements and explore the Visual Search

of residents. Having good quality educational institutes, malls, health care

feature powered by augmented reality on India Propertys mobile and tablet app.

facilities,hospitals, libraries in close proximity helps promote social and cultural

This free app ensures ease and access and simpler property search.

well-being and thereby a better lifestyle. An ideal locality should have a

well-balanced social infrastructure.

9. SEEK EXPERT ASSISTANCE

Basic Civic Amenities: Another important aspect to keep in mind is the basic

In conclusion, it is important to do your checks and balances while selecting a

civic amenities such as sewage, sanitation, power, water etc. However

locality to invest in. However with todays busy schedules, sieving through the

attractive a locality or a real estate project is, the lack of these basic amenities

market and gathering locality and property information can be a daunting task.

will greatly hinder the development of the area and your individual quality of

Understanding this challenge, IndiaProperty.com has designed a special service

life.

to guide buyers as they navigate the property markets. Assisted Property is a

Connectivity: Ensure that the locality you are investing in is well connected to
other parts of the city. Ideally it is best to invest in an area that is close to the
metro station, highways, train and bus stations so that you are well linked to
parts of the city.

unique service that assigns a dedicated property search manager to research,

review and shortlist properties, suited to each individual buyers requirements.

Expert assistance has many benefits

Unbiased reviews
Saves valuable time in short listing properties and researching
about localities and builders
Evaluation of properties, making the selection easier
Access to complete property information
Assistance on procuring home loans, sourcing legal opinions and site-visit services

10

THE LOAN PROCESS

We all dream of owning the perfect home, while some have the means
to purchase one, others dont. And that is where home loans come into
the picture. A home loan could be either taken to buy a new house, to
redo an existing property or to construct a building from scratch.
Establishments like banks or financiers help procure a home loan.

Some banks charge a processing fee to process your pre-approved

loan. Remember, if you miss out on the time span, you might end up
paying the fee twice.
Given the opportunity and the freedom to look for a home based your
maximum eligibility, you tend to go overboard in spite of
your stringent budget.

No matter how well aware you are about loan procedures, there are

At times the interest rates are subject to change without prior information.

many points that miss the eye and cause a lot of hiccups in the lengthy

Check if the loan amount is suitable for you. Most of the times the bank

process. For all those who want your loan application process to be a

provides loan based on your credit history, so the sum that is approved

hassle-free experience here are a few things you should be well aware of.

may not be of what your required. So check if the loan amount

1. PRE-APPROVED LOANS

is suitable for you.

When banks approve an in-principal amount on the basis of your profile

2. DOCUMENTS REQUIRED

its called a pre-approved loan. A pre-approved loan is usually offered

You need to submit your bank account statements, your PAN card and tax

to those individual/customers who have a clean track record.

return details along with your pay slips to the bank.

Some establishments also go on to offer loans to individuals who havent

taken a loan at all. Repayment of previous loan on time and clearing

Loan documents checklist

credit card transactions within the given date are a few factors that

To make the loan process convenient its important to maintain a perfect

help zero down tentative customers for the bank. Pre-approved loans

loan file. Here are a few documents that are required for the sanctioning

are usually divided into two section -- unsecured and secured.

of your home loan.

While unsecured pre-approved loans are of personal loans, the latter

The application form along with a photograph that has been signed

could be used as car and home loans.

across.
You must also provide your identity, age and residence proof. You could

Pros:

submit any of the following for the same - voters ID card, driving license,

Most of the time pre-approved loans are processed quickly, thereby

PAN card, a credit card with a photograph or an employee ID card.

saving you from missing out on the opportunity to buy your dream
house soon.
There are a number of discounts offered on the interest rate of a
pre-approved loan. So ensure you cross-verify before availing a loan.
Having a pre-approved loan will help you negotiate with your sellers
as they are aware that your finances are prepared.
Once the pre-approved loan is sanctioned, you can focus on looking
for your perfect property, as pre-approved loans are a better deal
compared to the loan your builder offers.

You will also need to file your bank statement for the last six months.
Any pass book that shows your salary or income credited
could also be submitted.
Salaried individuals need to submit their last three months salary slips.
Proof of business existence and educational qualification certificate need
to be submitted for the self-employed professionals or businessmen.
Self-employed professionals and businessmen need to submit their last
three years Income Tax returns. And for all those who are in the service
sector, you could submit Form 16.
Six months bank statements or last three years profit and loss and

Cons:
Because pre-approved loans are valid for a limited period you will be
forced to hunt for your home at the earliest. If the decision to
purchase a home is taken in haste, there are a number of long-term
impacts that may affect you.

11

balance sheet need to be submitted too.

Processing fee cheque should also be submitted.

3. PREPAYMENT OF LOANS
Prepayment of loan is when the entire loan amount or a part of the loan is paid off by the borrower before the due date. While some banks allow prepayments,
others might charge a penalty fee because prepayment of loans upsets the banks profit calculation from the interest. Below are a few factors why borrowers
should consider prepaying their loans:

Why you should opt to prepay

Hang on to your loan if you just have a few years left. It might be a better deal for you to invest that amount somewhere else rather than prepaying our loan.
Your loan benefits decline as the loan period shortens.
Prepayment of lower interest rate loans will not be able to produce the same savings when compared to prepaying for loans at higher interest rates.
And for all those who want to save a few bucks, prepaying your loans might force you to lose a few benefits like mortgage interests which is tax-deductible.

4. EMI
EMI - Equated Monthly Instalment is a repayment sum monthly payable to the lending institution. Both interest and principal are a part of the EMI. However, EMIs have
higher interest component than the principal amount. If your EMI is less than 50 percent of your salary, then you might not want to consider prepayment as the interest
rates would fall within 15 months.

Advantages of EMI
EMI helps you buy anything and everything.
Salaried individuals can now afford to buy something that is way beyond their reach and pay for goods in an equated sum.
Giving the liberty to pay in equated amounts every month, EMIs are becoming popular with the common
Banks too introduce many schemes and charge minimal amounts for commodities like mobile phones and air conditioners.
Many individuals are unaware of how much the banks are charging them as EMI. EMI calculators help you cross-check the same.

Disadvantages of EMI
Until you pay off the principal amount you will be under debt. Some loans such as home loans are extended for 20 years,
so you must be prepared to be under a long-term debt.
Because you are liable to pay off the principal amount first, you might have to stop purchasing other luxury products.
Even if you can afford to clear the principal amount in one stroke, there are certain banks that do offer early payment as the banks might lose out on the interest.
If individuals skip paying EMI, the establishments could take drastic measures like prepossessing your property.
Laying down penalties and legal action could also be taken against the individual.

5. HOME LOAN INSURANCE

A plan that covers the borrowers outstanding loan liabilities is termed as a home loan insurance. After the demise of the borrower, these proceeds are used to pay the
remaining loan amount. Usually these covers reduce as the loan amount is paid off. Once you buy a home loan, you will be offered a home loan insurance because
of the tie-up the insurance companies have. You could also opt to buy a home loan insurance cover separately too.

Key pointers
If you want to increase your regular outflow of cash, pay the premium instalment on time.
The premium is usually doubled when a joint application is applied.
The insurance company is liable to pay for the losses even after the demise of any one of the joint applicants.
You could pay the premium all in one shot or decide to pay them in regular instalments.
Your age and medical records, the loan amount and the duration of your loan detects your premium.
Under Section 80C, you can get a tax deduction as you are paying a life insurance premium.
If you are paying the premium with your EMI, you will not be able to avail the insurance benefit.
But the amount paid towards the principal could get a deduction under Section 80C and the interest payments under Section 24.

Tax exemptions
The tax benefit in terms of interest can only be availed once the construction of the property is completed.
You can avail maximum deduction towards an interest of Rs 2 lakh once your flat is considered to be self-occupied.
For a property that has been let out, your entire interest sum is allowed as deductions against the rent.
For deductions on the principal of your home loan, there is still ambiguity. However, once the property is constructed you could get your tax benefits under Section
80C. But remember, the overall limit is Rs 1.5 lakh per financial year.
If you have availed a home loan from a bank for the first time, up to Rs. 25 lakh between 1 April 2013 and 31 March 2014, you will be entitled to an additional
deduction of interest of Rs 1 lakh. IndiaProperty has a dedicated section for home loans.
A team of experts take your credit history and all these factors into consideration and works out the best interest rates for you.

12

NEGOTIATING
AND CLOSING DEAL
Negotiation plays a major role when it comes to purchasing a property. Adopting a realistic approach and arming yourself with knowledge about the
current market trends can help you get a good deal.

Knowing the market

After you have zeroed down on the property you want to purchase, it is best you get the rates of other projects in that locality. These rates will help you
during your negotiation. Knowing how long the project has been on the market will also help as the builder might want to get rid of projects which
have not been sold. See how the project was priced during the pre-launch stage and how the price trend has been since then. If the prices have fallen
since the pre-launch stage, you can bargain and get better rates. Doing some background research on the builder will also help you. The builder might
be cash strapped and looking to sell in a hurry. There might be some targets that the builder will have to meet as well, so if you have done your research
properly you can negotiate a good deal. You can also find out how much of a discount the builder is willing to offer and prepare to negotiate around
that amount.

Expressing interest
When you are going to negotiate with the builder, you need to have a pre-approved loan ready. Also, have an amount set aside just in case you have to
make an upfront payment. You might also have to make an offer even when you are unsure if the builder will accept it or not. These steps will show the
builder that you are a buyer who is serious about making the purchase.
Once this is established, the builder might give you a better deal. Besides this you can also increase your bargaining power if you negotiate as a group.

What to expect
Dont go in to a negotiation expecting a huge discount. A builder will typically offer a 5 to 7 % discount on the quoted price. If the builder has refused
your initial offer, wait for a few days as chances are that the builder might call you back. Some builders might have bought the land when the prices
were high and will be willing to wait rather than sell the property at a lower price. So it is essential that you gauge the situation and learn to walk away
when the builder refuses to budge. Ensure that you have a set of options ready in case the deal does not come through.

13

POST PURCHASE
1. LEGAL ASSISTANCE, REGISTRY
AND DOCUMENTATION
If you thought finding a property was troublesome, wait till your actually get to
signing the paperwork. Once the initial stage of selecting the property is complete,
what is more crucial is the registry and documentation you will need to sign to
become the proud owner of a property. If you want to invest your life savings in a
fruitful manner, ensure you read the sales agreement thoroughly before signing on
the dotted line. And if you are seeking legal assistance before you make the
commitment, look out for some of these pointers first and then sign the sales
agreement with the developer.

Title deeds
The first step is to see the title deed of the land that you are going to buy.
Confirm whether the land is in the name of the seller and that the full right to sell
the land lies with only him and no other person.
It is better to get the original deed examined by a lawyer. This is to check details

Pledged land
Some people may have taken loan from the bank by pledging their land.
Ensure that the seller has paid back all the dues.
Ask for a release certificate from the bank which is necessary to release
all the debts over the land legally.

Measuring the land

It is advisable to measure the land before registering the land in your name.
Take the help of a recognised surveyor to ensure that the measurements
of the plot and its borders are accurate.
You could also take the survey sketch of the land from the survey department
and compare it for accuracy.

You Can Employ Experts To Do This Tedious Task

AssistedProperty has a dedicated team which helps you with the registry
& documentation process.

2. PURCHASING LAND FROM

NRI LAND OWNERS
A person staying abroad can also sell his land in India by giving the power of

as to whether the seller has permitted any entry/access to others through this land attorney to a third person authorising him to sell the land on his behalf.
and whether any other facts have been suppressed/left undisclosed by

In such cases, the power of attorney should be witnessed and duly signed by

the owner of the land.

an officer in the Indian embassy in his province.

Along with the title deed, you can also demand to see the previous deeds of the
land available with the seller.
In some cases, more than one person may own the land. So before registering,

Power of attorney
Power of attorney is the power given to an agent by the principal to execute

check if there is more than one owner. If there are more owners then get

several acts and deeds for and on behalf of the principal. Stamp duty payable

a release certificate from the other owners involved.

depends on the nature of power given.

When power is given in respect to a number of acts in a number of

Conveyance Deed or Sale Deed

transactions it is called general power of attorney. It is always advisable to hold

A sale agreement is a document by which the title of property is conveyed

a registered GPA while registering an immovable property in order to give

by the seller to the purchaser.

Here, conveyance is the act of transferring ownership of the property from
a seller to the buyer.

a better title to the property.

When power is given in respect to a particular act pertaining to one transaction
it is called special power of attorney.

The document helps you ascertain whether the property, which you are buying
is on land belonging to the society/ builder/development authority in which

Agreement

the property is located.

Once all the matters, financial/otherwise are settled between the parties, it is better
to give an advance and write an agreement. This ensures that the owner does not

Tax receipt and bills

change his word regarding the cost as well as make a sale to someone else who

Property taxes, which are due to the government or municipality are the first charge

offers more money.

on the property. Therefore inquiries must be made in government and municipal

The agreement should state the actual cost, the advance amount,

offices to ascertain whether all taxes have been paid up to date.

the time span within which the actual sale should take place and how to

Inspect whether the latest taxes have been paid.

proceed in case of any default from either parties to cover the loss.

Inquire with various departments of the municipality to ascertain whether any

notices or requisitions relating to the property are outstanding.
If you are buying a house along with the property, then the house tax receipt
should also be checked.

The agreement can be prepared by a lawyer and should be signed by both

the parties and two witnesses.
After signing the agreement if one of the parties makes a defaults,
the other party can take legal action against him.

Also ensure that the electricity and water bills are up-to-date and if there is
balance payment to be made, ensure that it is made by the seller.

Stamp Duty
It is a tax similar to sales tax and income tax collected by the government and must

Encumbrance Certificate

be paid in full and on time.

Before buying any land or house, it is important to confirm that the land does not
have any legal dues.
Obtain a certificate called encumbrance from the sub registrar office where the

value and is admitted as evidence in courts.

deed has been registered, stating that the said land does not have any

Stamp duty is a State subject and hence would vary from state to state.

legal dues and complaints.

When an agreement is to be stamped, it needs to be unsigned and

You can check the encumbrance certificate for the past thirteen years or could
demand to verify the 30 years encumbrance certificate of the property.

14

A stamp duty paid is considered a legal document and as such gets evidentiary

undated. One may execute the agreement only after the Stamp Office
affixes stamps on the agreement.

Registration
Registration is the process of recording a copy of a document transferring the title of an immovable property to the office of the Registrar.
It acts as proof that a transaction has taken place.
A draft should be prepared before actually writing the document in stamp paper. Registration is done after the parties execute the document.
The agreement should be registered with the Sub-Registrar of Assurance under the provisions of the Indian Registration Act,
1908 within four months from the date of execution of the document.
Make sure all the details mentioned are accurate.
Original title deed, previous deeds, Property/House Tax receipts, etc. plus two witnesses are needed for registering the property.
The expenses involved during registration include Stamp Duty, registration fees, document writers/ lawyers fees etc.
Make sure that the deed is registered within the time limit mentioned in the agreement.
Stamp duty should be paid prior to the registration.
If you think these formalities are too tedious and complicated, you could always enrol for the AssistedProperty service where experts search
property online and ensure that the whole process remains stress free.

15

RETURN ON INVESTMENT
& WHEN TO EXIT
1. HOW TO MAKE THE MOST OF YOUR INVESTMENT
Real estate investment involves years of financial planning for an individual. This tedious process reaps many benefits in the future, if the owner understands the ways
and means of optimum utilization of their real estate investment. Revenue generation and maintenance of your property are two important aspects to be considered here.

Factors to be considered before buying a property for better returns:

Research
Make sure you carry out thorough research on the web for the particular project. The project should move at a good pace in order to make for a safe investment choice.
If a project is nearly 30% complete, it gives an assurance in terms of approvals and other paperwork. Bank approved projects should be chosen over others for the same
reason. Check with property brokers as well as builders to see who offers a better price.

Location & connectivity

Properties in most metros give good return of investment compared to other towns or cities. Most property investment should be given a gestation period of up to 4 years
for better returns. Properties with good connectivity garner good value for money. Close proximity to bus, railway or metro station, airport etc.
is always an added advantage.

Pre-launch or under construction project?

Pre-launch projects pose greater risk as the builders might not have all the necessary approvals in place, although these projects have good discounts and offers.
If you have the luxury to take a risk you can go for the pre-launch offers otherwise it is always advisable to go for a newly launched project by a reputed builder in
a good neighbourhood.

Basic Infrastructure
Make sure the basic infrastructure is in place, like water, electricity, safety, roads etc. Most upcoming localities offer great land prices and good appreciation, although
certain basic amenities may or may not be in place.

Apartments or plot?
Plot is always a preferred investment option as it shows greater appreciation in future. But if you are looking for regular rental yields, apartments are always better.
Also individual houses yields lower rentals as compared to apartments. Make an informed decision considering all the options given.

Buyers or sellers market?

You can gain high profit margins only in due course of time. The present scenario suggests that the market is highly competitive and the builders have come up with
numerous offers to attract buyers. Therefore, it definitely seems like a buyer centric market.

Panchayat approvals or government approval?

When investing in a property one must make sure all the approvals are in place. If the property is only approved by the designated panchayat, it poses a few risks in
terms on return of investment. These properties might not have all the civic amenities in place like sewage, electricity, road etc. It is always advisable to buy property
with municipal council or government approval. You will also get a bank loan easily if you hold the municipalitys approval.

2. WHAT IS THE RIGHT TIME TO EXIT?

Before your make selling decision
Selling a property is a big decision. At this juncture, ones investment needs to reap maximum return of investment. Therefore you must consider these factors before you
sell your property:
Check the particular localitys property market before you sell. The key to selling your property is patience. It takes a while to get the right taker at the right price.
Therefore you need to start with checking property listings in the locality and also check with brokers before fixing a price. Over-pricing and underpricing,
both can affect your selling decision and process.
The return on investment by selling a property depends on how long you owned it. Tax benefits needs to be kept in mind before making a selling decision.
If you sell your property too soon, say within 3 years then you will lose tax benefits.
If your property has a mortgage on it, then you must clear your loans before selling it. Transfer of such properties require a lot of paperwork and documentation.

16

How to sell your property?

Selling is considered to be a very difficult task as compared to buying.

The current status of the property including condition and maintenance

You need to look at all avenues to sell you property so that you can check

of the building, specifications of the property,

and weigh your options. Brokers have a good understanding of the local

developments in the locality in the span of possession

property market. The best option would be to list your property in real

of the property need to be looked at.

estate portals like IndiaProperty.com. You can explore many options using
these portals.

When to exit?
Real estate investment cannot reap immediate benefits. The minimum time
required for a property to show any appreciation is about 3-4 years.
So make the right buying decision when you purchase the property, so
that you have a clear exit strategy while selling it in the future.

Things to keep in mind before selling:

Consider the impact on tax benefits before selling the property
Legal fee, stamp duty, brokerage etc. need to be factored in
Pre-payment of loan invites penalties. Therefore if you consider

17

that route, do analyse its financial implications.

Documentation required before selling:

Housing society share certificate- in case the property is a part
of a housing society
NOC (No Objection Certificate) from the housing society
Joint ownership requires a document expressing consent to sell
by both parties
Sale deed- this confirms that the property belongs to the seller and
that they have the right to sell. If the property has been transferred
to many buyers, then those documents need to be produced too.
Purchase deed
Copies of stamp duty and registration documents
Mortgage papers if required

GUIDELINES FOR NRIs

SELLING PROPERTY IN INDIA
There is a growing concern among NRIs (Non-Resident Indians) when it comes to their immovable assets in India, especially when considering disposal of the property
and repatriation of funds. Here are a few pointers that will clear those doubts:
NRIs are free to sell property, either residential or commercial to a person living in India, a Person of Indian Origin (PIO) or to another NRI.
NRIs can sell agricultural land, farm house or plantations only to an Indian citizen, who is residing in India. A foreign national of non-Indian origin residing outside
India, will need to get a prior approval from the Reserve Bank of India (RBI), to sell agricultural land/farm house or a plantation property in India.

An NRI can repatriate sale proceeds under these following conditions:

When the property was acquired by the seller in accordance with the provisions of the foreign exchange law at the time of acquisition.
When the amount to be repatriated is not more than the amount paid for acquiring the property in foreign exchange, received through proper banking channels
or the amount was paid out of funds held in the Foreign Currency Non-Resident (FCNR) account or the foreign currency equivalent on the date of payment
of the amount drawn from the Non-Resident External (NRE).
The sale proceeds of not more than two properties can be repatriated.

To repatriate the sales proceeds outside India:

The NRI needs to buy or draw foreign exchange from an authorised dealer and remit it outside India through normal banking channels. They can also credit it into an
account denominated in foreign currency or to an account in Indian currency held by an authorised dealer from which it can be converted into foreign currency.
If the property was acquired out of rupee resources or if the loan was repaid by close relatives in India, the amount can be credited only to the Non-Resident Ordinary
(NRO) account.

Till what limit can NRIs repatriate?

NRIs can repatriate up to $ 1 million per financial year out of the balance in the NRO
account of the sale proceeds of assets purchased or assets in India which were acquired
by inheritance or legacy.
The NRI would have to produce documentary evidence to support the acquisition,
inheritance or legacy, a tax clearance certificate, a no objection certificate from the Income
Tax authority for the remittance.
Remittance which exceeds $1 million needs the permission of the RBI.
The sale proceeds of property which was gifted to the NRI must be credited to the NRO
account. The NRI can repatriate funds from the NRO account up to $1 million in one
financial year after payment of the applicable taxes.
In the case of an inheritance, the NRI can repatriate funds under the following
conditions:
The amount should not be more than $1 million in one financial year.
The NRI must produce documentary evidence, a certificate from a Chartered Accountant
in the format prescribed by the Central Board of Direct Taxes
What if the dead of settlement is made by the NRIs parents or family?
The settlement will take place on the death of the settler
The original deed of settlement, a tax clearance, and a no objection certification from the
Income Tax authority should be produced for the remittance.
Repatriation of the sale proceeds for the foreign national:
In the case of a foreign national the sale proceeds can be repatriated if the property is
inherited from a person residing outside India with the prior approval of the RBI.
The foreign national has to approach the RBI documentary evidence and the certification
from the Chartered Accountant.
General permission for the repatriation of sale proceeds of property is not available for
citizens of Bangladesh, Pakistan, China, Sri Lanka, Afghanistan and Iran. Such individuals
will have to get a specific approval from the RBI.

18

VAASTU AND
FENG SHUI

The entrance of the plot can be narrow compared to the rear end, but
the reverse is considered to be unfavourable.
Always begin the construction of the house from the north-east side and
move towards south.
Leave considerable amount of open space in the north-east side. Avoid
planting trees in this direction.
Any elevation on the site should be restricted to the west and south. It

1. GUIDLINES TO ENSURE
YOUR PROPERTY
IS VAASTU COMPLIANT
Vaastu is an ancient Indian science of space, architecture and

should be definitely avoided in the north and east directions.

Plots situated beside two larger plots should be avoided. It is said to
bring poverty.
It is also important to check if roads run straight at any four sides of the
house. It can however run parallel on any side.

construction that was primarily used in temple architecture. Today modern

Vaastu Shastra has proven to be an aesthetic way of construction to

For your home

propagate a free flow of cosmic energy in your homes. It has gained

The main door should be in the north-east zone.

immense popularity in the recent past, forcing builders and home owners

The rest of the doors should not be bigger than the main entrance of the

to construct a vaastu compliant home due to its increasing demand.

Here are a few pointers to keep in mind to check if your property is
Vaastu compliant.

house.
All the doors must open inwards, so that the energy remains in the
house.
The property must not have three doors aligned in one line. This disrupt
the flow of energy.
It is also favourable to have equal number of doors and windows.
A pooja room or a meditation room should be in the north-east zone but
make sure the deity never faces south. It can face north, west or east.
It is also favourable if the pooja room has a double shutter door.
Make sure that there is no kitchen or toilet above the pooja or meditation
room.
Photos of deceased family members should be placed in the south-west
corner of the house.
You should always cook facing east. It is the most favourable direction.
Cooking facing north or south must be avoided.
A toilet and kitchen should not face each other. It is also advisable not
to have a kitchen and toilet next to or in front of each other.
Ideally the kitchen should be in the south-east corner of the house.
The bathroom or the toilet should not be in the east or north-east portion
of the house.
The bedroom, dining room and the living room should not have an attic
above them. Large beams on the ceiling should also be avoided in
these rooms.
It is favourable to have bedrooms in south, south-west, west or
north-west corner of the house. East, north and south-east corners should
be avoided.
The bedroom of the head of the house like parents should ideally be in
the south-west corner.
The earning members of the family should occupy the north-west side.

For a residential site

The residential site should be a perfect square or a rectangle. A land cut
in corners is not recommended.

Bedrooms in the south and west portions of the house should be

occupied by sons whereas the ones in the north-west should be occupied
by the daughters.

If it is not a square or a rectangle, then the south-west and the south-east

side should be at an angle of 90 degrees from each other.
L shaped, triangular, diamond shaped, oval or round plots are
considered inauspicious.
The south-west and south-east side of the property should be in line with

Buying a home is one aspect of the process, designing, decorating and

each other. The south-west portion should not go beyond the south-east

constructing is another. One such system widely used across Asia is Feng

part of the plot.

Shui. It is Chinese philosophical ideology, said to create harmony in your

Similarly an extension on the north-west part of the property is

considered to be ominous.
The only favourable extension is the north-east side. It is believed to

19

2. DOING UP YOUR HOMES

WITH FENG SHUI

living space with the placement and use of energies and natural elements.
Although this topic might overwhelm individuals, keep these pointers in mind
and let your home reflect positive energy.

bring wealth and prosperity. Ensure that your site is not short on the

Clutter and repairs: A home full of clutter will be an unhappy home. This

north east direction.

home will fail to attract positive energy according to Feng Shui. Clutter

blocks the flow of energy through your home. Get rid of things which are of no use, broken or bring back unhappy memories. If something needs fixing, it has to be
immediately to allow for the free flow of energy.
Furniture: The placement of furniture is very important as far the flow of energy is concerned. Beds, chairs or desks should not be placed right across or with its back towards
the main door. People should be able to sit with their backs to a wall whenever possible. Each piece of furniture should have enough space around it to allow for the
unhindered flow of energy.
Mirrors: Mirrors are supposed to reflect positive energy and curtail the flow of negative energy around the home. According to the principles of Feng Shui, mirrors double
the potency of positive energy. But mirrors should not be placed on walls directly facing the main door as the energy from your home would be sent outside by the mirrors.
Mirrors should also not be mounted on walls facing your bed.
Plants: Plants hold a special importance to the Chinese. They are supposed to promote growth, prosperity, and good luck. As such Feng Shui encourages the placement of
plants in your office or home. But one should be careful as far the placement of these plants is concerned.
Colours: Colours hold a special significance in Feng Shui. Bright colours are encouraged in Feng Shui. Dark colours draw negative energy, hence their usage is discouraged.
Green represents life and hope, yellow represents power and happiness, while red represents luck and purple royalty.

20

GLOSSARY

Allotted Land- Land that the government has allotted to Indians in

a ratio of 40, 80 and 160 acres.
Allottee- A person who owns an undivided interest in a parcel of allotted land.
Acre - A measurement of a land/unit that is proportionate to 43560 square feet.
Agent- An agent is a person who has the authority or the license to act for or
represent the principal.
Addendum- Changes or additions made to a contract.
Affordable housing - refers to housing units that can be afforded by people
whose income is below the prescribed household income.
Amenities- Features and facilities offered by builders that increases the value of
your property.
Appreciation- The value of your property increases as a result of the change in
market conditions or other economic/social factors.
Asset- A property of certain monetary value that can be owned by an individual
or a firm.
Asking price- Price of a property that is stated by the seller.

21

Balloon Payment- A large amount that is paid to clear a debt.

Floating rate- Any interest rate that shifts on a repeated basis. The change is

Broker - An individual or a company that brings together the owners and buyers

usually driven by outside factors like the prime interest rate.

with a view to complete a real estate transaction. He charges a percentage as

Fixed rate- A loan interest that remains the same throughout the duration of

brokerage fee.

your loan term.

Base rent- A fixed amount of rent that is determined before incorporating other

Fixed lease- A fixed rental amount that a lessee pays through out the duration

expenses or factors that act as provisions for increasing rent over the term of lease.

of the lease term.

Built up area- Refers to the area that covers the carpet area, the thickness of the

FSI (Floor Space Index)- The ratio of the complete floor area of the building to

walls and common areas like car parking, lobbies and atriums.

the size of the land.

Building contract- A contract between the building contractor and the

Farmhouse- A farm house is a building that serves as the residential property

owner/occupier of the property stating all the terms and conditions under which the

of a farm.

construction can be carried out.

Finance- The act of providing funds to an individual or an enterprise.

BHK - Bedroom, Hall, Kitchen

Floor plan- A floor plan is a diagram or a sketch of the layout of the building.

BSP- Basic Selling Price

It also shows specification of individual rooms.

Bank-owned property- A property that has been possessed by a bank when a

buyer defaults on payments.

Buy-to-Let- Buying a residential property for the purpose of earning revenue through

Gated community- A gated community is a residential or a housing estate that

rentals.

is very tightly guarded with walls. These communities have a number of

Buyers market - When the market favours the end users/buyers with lower

residential units and include various amenities.

property

Gross area- Gross area is the total floor area of a building. Exterior of the walls

prices

coupled

with

increase

in

the

number

of

properties

for sale.

are included too.

Building code/By laws- They are a set of standards established and enforced by

Gross building area- Gross building area equals to the total floor area of the

the local government to regulate the minimum standard of construction, zoning,

building including basement, balconies and exterior walls.

building design and structural safety of the buildings.

Ground coverage- The ground coverage is the ground area covered

immediately above the plinth level by the building.

C
Carpet area - The area that is calculated from wall to wall inside the house.

Common area - Areas that can be used by more than one tenant/owner withinthe

Home inspection- An examination of the structure of the house that helps you

building. E.g. Parking lot and lobbies.

determine the condition of the property for evaluation purposes.

Common area maintenance - Charges incurred by the tenant or owner for the

Household- A house and its occupants living in a unit residence are regarded

upkeep of the common areas.

as a household

Capital transaction - The act of purchasing or selling a property.

Heir- An individual who lawfully inherits an estate or a property of another on

Condominium - An apartment or a building with a number of individual flats or

that persons demise.

houses that can be owned or rented.

Home loan- A sum that is advanced to a buyer by a bank or an individual to

Commercial property - A property that is let out for business purposes only.

assist in buying a property.

Construction Linked Plan (CLP)- CLP is a payment plan where the instalments
are paid to the developer as per the predetermined stages of construction of the

property.

Insurance-The act of protecting or insuring a property or an individual against

the loss or damage caused by unanticipated events such as death, fire, theft etc.

Inventory- A detailed list or a record of property Immovable property-

Deposit- An amount that a potential buyer submits to show his seriousness about

An immovable object that is attached to the earth like land and buildings.

purchasing the property.

Investment property- When the owner leases out a property not occupied by

Down payment- A portion of the purchased property price that is paid up front.

him to an individual with an intent to earn an income e.g. -renting a house.

Debt- A sum of money that is owed to another individual.

Developer- An individual or a company which develops sites that can be used

for residential or commercial properties.

Joint tenants- Co-owners who share ownership of land or other items at

identical interests.

E
Encroachments- A section of the property or establishment that illegally

protrudes into another individuals property or street.

Kiosk- Tiny retail outlets which are located at public places where customers

Expansion- The act of expanding a surface.

could purchase items like newspaper.

EMI (Equated Monthly Instalment)- The customer repays the loan through
EMIs.

Estate agent- An individual who acts as an agent to sell or rent out

Lease- A contract where the property is conveyed to another individual for a

buildings/land for his clients.

specified period usually for rent.

Elevation- It is the front or side view of a building.

Loan- A sum of money that is borrowed for temporary use. The loan sum is
expected to be paid back with interest.
Landlord- An individual who owns and rents out buildings and lands.

22

Landmarks- Landmarks are buildings or heritage sites that are

Rental Agreement- A rental agreement is a document that describes the

marked to be preserved by the government.

terms and conditions of dwelling and calls for the lessee to pay the lessor for
the use of an asset.

Ready to Occupy- Refers to a space that needs no further alteration or

Market Value- Is the price at which the seller is willing to sell

improvements by the tenant or the landlord.

and the buyer willing to buy.

Resale Property- The act of selling a property for the second time.

Mortgage- Is a contract or a deed where an individual borrows

A resale property gives buyers an opportunity to purchase a previously owned

an amount to purchase a property, and if the borrower fails to

home.

repay the money, the lender may take possession of the property.
Mortgagee- An individual who lends money in the mortgage

agreement is a mortgagee.

Security- When an individual deposits or gives something as assurance of

Maintenance Charge- The charges incurred by tenant or owner

the fulfilment of an obligation like repayment of a loan.

for the upkeep of common areas.

Shopping Mall- Are large retail complexes or structures consisting of a

Master Plan- Is a document or a certificate that narrates the

number shops, restaurants in a single large building.

overall development of city/site using maps.

Site Plans- A site plan is a landscape architecture document that shows

boundaries and the physical extent of the ground.

Super Built-up Area- An aggregate superficial area of the building taking

Occupant- Is a person or a group of people who reside in a

each floor, external walls, and common areas into account.

house or office estate.

Slab- A slab is a type of a concrete foundation on which the home/building

Office Park- Is a complex or a building with a number of

has to be built on.

corporate office grouped together.

Section- A unit of land that is equal to 640 acres.

Owner- Is an individual who is the legal possessor of a property

or an asset.

Office- Are set of rooms where business or professional work is

Tenants- An individual or a lessee who occupies or resides over a property

carried out.

through lease.

Ownership- The act of owning and controlling a property.

Tenure- The act of holding something in ones possession.

Trade area- An area that is designated to customers who come to do business.

Technology Park- Are major developments that

Price Range- The highest and the lowest amount the buyer is

comprise of high-end office spaces as well as residential and retail

willing to pay to buy a home.

developments.

Property- Ownership or possession of intangible and tangible

Taxes- A compulsory contribution that is levied by the government on

things like a piece of land or real estate.

peoples income and business profits.

Property Tax- An amount that is levied as tax on real or

Town-house- Are a number of simple or duplex units that share the same

personal property.

boundary with other homes.

Public housing- Residential areas that are owned and funded by

Township- A small settlement or a town that serves as the business centre for

the government that are made available for low-income families.

rural areas.

Premises- Is usually a part of a building or a building including

Title deed- A legal document that acts as on evidence of rights like

the adjacent grounds.

ownership of a property.

Pre-Launch- Is a phase before the site is official launched.

Plan- A proposition or a tentative project.

U
Utilities- Private or public services that are offered as part of the

development as known as utilities. E.g. Water, gas and electricity.

Real Estate Agent- Is a person who works for a real estate

Urban centres- An area in the city that has been largely developed and has

broker. This individual is licensed to represent either the buyer or

several independent administrative districts.

a seller in a transaction in exchange for a commission.

Under-valuation- When a value of the property is proposed to be lesser

Realtor - Is an individual or a real-estate agent who is affiliated

than the fair market value.

with the National Association of Realtors.

23

Remaining Balance- A sum of money from the principal amount

that has not been repaid yet.

Vacant Land- A plot of land that is empty and has not been developed.

Rentable area- A measured unit of a building that could be

Vacancy- A number of units that are vacant and are available for

rented or leased to tenants.

occupancy at a given time within a given market.

Residential Property- A property that used for residential

Vaastu Shastra- Is an ancient doctrine or a design system that specifies the

purposes like apartments, single-family homes and town-houses.

detailed methodology of designing building. This system harmonizes any

Renovate- Restoring, renovating or reviving a building to

real estate development with five elements like air, water, earth, fire

good condition.

and space.

Row house- A series of similar architecturally designed homes

Valuation- The act of making a written analysis of the estimated value of the

built side by side and joined by common walls.

property for a particular purpose of letting or purchasing property.

Value- The price of an asset that might fetch more reasonable profit if disposed

something. In the financial world, a beneficiary typically refers to someone who

at the right time.

is eligible to receive distributions from a trust, will or life insurance policy.

Villa- A luxurious independent houses that are built on own grounds.

Beneficiaries are either named specifically in these documents or they have met
the stipulations that make them eligible for whatever distribution is specified.

Bond- Is an instrument of indebtedness of the bond issuer to the holders. It is

Warehouse- Warehouses are structures that are built for the purpose of

a debt security, under which the issuer owes the holders a debt and, depending

storage. Usually raw materials or finished goods are stored here.

on the terms of the bond, is obliged to pay them interest (the coupon) and/or to
repay the principal at a later date, termed the maturity date.

Yield- The interest earned/returned by an investor on an investment. Its usually

Contract- An agreement that is enforceable by law.

stated as a percentage of the sum invested.

E
Z

Encumbrance- A claim against a property by another party. Encumbrance

Zone- A particular area of a land or a part of the building that is allocated for

usually impacts the transferability of the property.

a particular purpose.
Zoning- The division of specific areas by the local planning authority for the

purpose of legally defining land use.

Penal rent- A form of a punishment to a tenant for failing to honour his

obligation to pay rent at the proper time, taking the form of a vastly higher

LEGAL GLOSSARY

figure
being payable during the period of default.

A
Affidavit- A written statement of facts voluntarily made by an affiant under an

oath or affirmation administered by a person authorized to do so

Remaining Term- The original term of the loan after the number of payments

by law.

made has been subtracted; the number of payments or time period left on a

Assumption Clause- A provision in a mortgage contract that allows the seller

loan. Registration- An act of officially entering name and other details of

of a home to pass responsibility to the buyer of the home for the

entity/transaction for purpose of official records.

existing mortgage.
ARM (Adjustable-rate mortgage) - A mortgage in which the interest changes

periodically, according to corresponding fluctuations in an index. All ARMs are

Sale deed- Document in writing that transfers the ownership of property from

tied to indexes Amortisation- The loan payment consists of a portion which will

the seller to the buyer for a consideration. This document has to be registered

be applied to pay the accruing interest on a loan, with the remainder being

compulsorily.

applied to the principal. Over time, the interest portion decreases as the loan

Sales agreement- Formal contract by which a seller agrees to sell and a

balance decreases and the amount applied to principal increases so that the

buyer agrees to buy, under certain terms and conditions spelled out in writing in

loan is paid off (amortised) in the specified time.

the document signed by both parties.

Amortisation schedule- A table which shows how much of each payment will
be applied toward principal and how much toward interest over the life of the
loan. It also shows the gradual decrease of the loan balance until it reaches
zero.
Appraiser- An individual qualified by education, training, and experience to
estimate the value of real property and personal property. Although some
appraisers work directly for mortgage lenders, most are independent.
Appreciation- The increase in the value of a property due to changes in market
conditions, inflation, or other causes.
Assessment- The placing of a value on property for the purpose of taxation.
B
Beneficial Use- A right to utilize real property, including light, air and access
to it, in any lawful manner to gain a profit, advantage, or enjoyment from it.
A right to enjoy real or Personal Property held by a person who has equitable
title to it while legal title is held by another. A beneficial use involves greater
rights than a mere right to possession of land, since it extends to the light and
air over the land and access to it, which can be infringed by the beneficial use
of other property by another owner.
Beneficiary- Anybody who gains an advantage and/or profits from

24