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Knowledge Centre > FAQs for Domestic Customers

Q1. What is a residential apartment?

A: An Indian citizen who stays abroad for employment or business or a vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. Non-resident foreign citizens of Indian Origin are treated at par with Non-resident Indian citizen (NRIs).

Q2. What are the various types of apartments?

A: Apartments can be broadly divided on the basis of size as follows:

Studio apartments / efficiency/ bed sit / bachelor or bachelorette style apartments - are the smallest size apartments, designed especially for rent purpose. Such an apartment generally consists of a large room which is the combined dining, living and bed room. Even the kitchen facility is combined in these apartments barring the bathrooms. Bachelor or efficiency style apartments are at times smaller than studio apartments.

One bed room apartments are those in which one bed room is separated from the rest of the apartment. Similarly there are two bed room sets, three bed room sets etc. Small apartments have only one entrance unlike large apartments which may have more than a single entrance.

A garden apartment has some characteristics of a town house with each apartment having its own entrance and separate apartments are not placed vertically over one another. However, a garden apartment is usually one storey and never more than two stories. Some garden apartment buildings place a one-car garage under each apartment with pedestrian entrance from a common courtyard. The grounds are landscaped compared to other modestly scaled apartment.

Q3. What should a buyer keep in mind while purchasing a residential apartment?

A:Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin resident outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India. In overseas trusts at least 60% of the beneficial interest is irrevocably held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs as long as the ownership/beneficial interest held in them by NRIs continues to be at least 60%

Q4. What do you mean by Carpet Area, Built-Up Area and Super Built-Up Area?

A: Carpet Area is the area enclosed within the walls, actual area to lay the carpet.

Carpet Area is the total usable area enclosed within the four walls of an apartment or commercial space. It refers to the actual area over which a carpet can be laid if required by the owners. It does not include the thickness of the inner walls.

Built-Up Area is the carpet area plus the thickness of outer walls and the balcony.

Super Built - Up Area is the built up area in addition to the proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. The plinth area along with a share of all common areas proportionately divided amongst all unit owners make up the Super Built-Up area. At times it may also include the common areas such, swimming pool, garden, clubhouse, etc. The term is therefore only applicable in the case of multi-dwelling units.

Q5. How can knowing the Carpet Area, Built-Up Area and Super Built-Up Area of a flat help in the purchase of an apartment?

A: The break up of areas is extremely essential as builders can place any space from 65% to 85% per cent of the super built area as carpet area. It would then imply that if the area is quoted as 1,000 sq ft super built up area, the carpet area could be anywhere from just 650 sq ft to 850 sq ft. If this break up is not mentioned in the agreement, demand that the vendor/ builder mention it in the sale deed.

Q6. Should I inspect a property before buying it?

A: It is definitely important to inspect the property before purchase as probably it is one of the largest single investment made by most buyers. It is crucial to know all the details of the property and need for any major repairs / modifications before it is purchased. It is easy to crosscheck the commitment made by builder and actual implementation if a pre-purchase inspection has been carried out. A close inspection points out the positive and negative aspects of the property, as well as the maintenance that will be necessary to keep it in good shape.

Q7. What is a Sale Deed?

A: Sale Deed also known as Conveyance Deed is a document by which the seller transfers his right to the purchaser, who, in turn, acquires an absolute ownership of the property. The document is executed subsequent to the execution of the sale agreement and after compliance of various terms and conditions detailed in the sale agreement.

Q8. What is a Draft Sale Deed?

A: A Draft Sale Deed contains full details of the parties, advance amount paid, mode of balance amount payable, receipt of the balance amount by the seller, handing over the original documents of the property, handing over the possession of the property, handing over the authorization letter to transfer power and water meters, signing of the application for transfer of ‘khata’, title of the seller of the property, indemnifying the purchaser in case of defect in the title and easement rights and is prepared by the purchaser's advocate.

Q9. What is Khata?

A: A Khata is an account of assessment of a property, recording details about the property such as size, location, built up area and so on, for the purpose of payment of property tax. It is also a kind of identification of the person who is primarily liable for payment of property tax. It is one of the required documents in case the buyer requires a building license, trade license or loan from banks or any other financial institutions.

Q10. What is the difference between a Khata and Title Deed?

A: A Khata is an account of assessment of a property for the payment of tax. The Khata does not confer ownership. However, the Title Deed is the document through which a person derives a title or ownership of the said property.

Q11. What is a leasehold property?

A: A leasehold property is that which is leased to a lessee for a stipulated period. The lessee pays lease premium and annual lease amount as fixed and mutually agreed upon by the lessor and lessee. The land ownership rights remain with the lessor and a prior sale-permission is normally required if you plan to transfer the property.

Q12. How well do you need to know the developer?

A: Most of the apartments are by property developers in India and it is essential to check the background of the developer, the builder, the designer and the architect. It must be investigated if there have been any problems with their other developments in past. The financial position of the developer should be strong so that he could complete the project on time if the project is under construction. Investors must find out if the developer has the essential resource and building consents before paying anything.

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