Home Buying FAQs

Buying a home for the first time? Here is everything you need to know before making the big move.

What is the difference between Built-up Area, Carpet Area and Super Built-up Area?

Carpet Area: The carpet area of an apartment is the area available for residential use. It is the floor area that a carpet can cover. It doesn’t include the area covered by the walls.

Built-up Area: It includes the carpet area and the area covered by the walls.

Super Built-up Area: This term is only applicable to apartment complexes and multi-dwelling units. It includes the built-up area as well as common areas like the lobby, lifts and stairs.

What is the difference between the Lease Agreement and the Leave and License Agreement?

A lease, according to 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.

A license, according to Section 52 of the Indian Easements Act, 1882, does not allow any interest in the premises on the licensee's part. It only 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 stamp duty. For a period exceeding three years, the stamp duty is same for both agreements.

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

The RBI may grant permission to a foreign citizen of non-Indian origin if the property is purchased for residential use and the consideration is paid by way of foreign exchange.

Why is it necessary to register a property?

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

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

How is the rental rate ascertained?

There is no prescribed norm for determining the rental rate.

Though it can be ascertained by approaching brokers or registration authorities.

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