Purchasing a home is a huge endeavour, and buyers need to be more educated than ever, before they begin the process. The Buyer’s Guide provides links to practical resources on every aspect of home buying from investing in a property, buying your first home to negotiating the final contract. Buyer’s Guide will give an insight into the property buying process.
It is the amount charged by a Property Consultant for facilitating a transaction (Sale/Lease), which may vary from 1 percent – 2 percent of sale value to 1 month to 2 months rent in case of lease; or any other agreed fixed specified value / percentage.
Development Control Rules are designed to ensure proper and efficient development of a city.
City Survey Number is the identification number allotted by the government to every plot.
Something of value, such as a deed, stock, money or written instruments, that is out into the custody of a third [person by its owner, a grantor, an obligor or a promisor, to be retained until the occurrence of a contingency or performance of a condition.
Fungible FSI means a compensatory FSI permitted in lieu of flower bed, niche area, private terrace, ornamental elevation area etc in the flat to be constructed by the developer/land owner. According to the new DCR rules, Fungible FSI would be available at six per cent premium residential projects, 80 per cent for industrial and 100 per cent for commercial projects at the Ready Recknor Rates (RRR).
Commencement Certificate is a certificate and an official document issued by the local Town planning or Municipal Authorities to allow or permit the builder to begin construction or work, once all norms, licenses, permissions and consents have been obtained from the concerned or appropriate statutory authorities. Under Sections 43, 44 and 45 of the Maharashtra Regional Town Planning Act, no developer can commence the project without obtaining the CC.
Those portions of a building, land and amenities owned (or managed) by a planned unit development (PUD) or condominium project’s homeowners’ association (or a cooperative project’s cooperative corporation) that are used by all of the unit owners, who share in the common expenses of their operation and maintenance. Common areas include swimming pools, tennis courts, and other recreational facilities, as well as common corridors of building, parking areas, means of entry and exit etc.
Most of the redevelopment agreements provide for the payment of a ‘corpus fund’ by the developer to the society for meeting the further cost of the maintenance of the flats owned by the members. This ‘corpus fund’ absolves members from payment of maintenance in the future. This fund is paid by the developers as a consideration for the grant of the development rights.
Letter of intent issued by the SRA authority outlining the total FSI, usage of land and the allocation for the FSI towards rehab, sale and other portions of the plot of land. It ascertains the appointment of the Developer by the Society for development of the land.
Built-up area denotes the entire area of the floor including carpet area, walls, lobbies and corridors, atrium areas and basement. Always, check with your builder/agent on what concept they are using. In Mumbai, the basement, staircase, lift and utility rooms like generator and electricity rooms are also taken as built-up area.
In some cases, the developer might need to buy Development Rights, termed as Transfer of Development Rights, from the open market to supplement the projects. The TDR so bought should be in the name of the society. Owning a Development Right means that one owns the right to build a structure on the parcel. Development rights may be voluntarily separated and sold off from the land.
The actual usable area within the walls of the floor is Carpet area. Carpet Area is the effective area available for use within the property, excluding the area occupied by the walls. It is measured from wall to wall within the property and translates into the actual area to lay the carpet. This area does not include the thickness of the inner walls.
Floor Space Index is the quotient of the ratio of the combined gross floor area of all floors excepting areas specifically exempted under local regulations to the total are of the plot. It is the ratio between the Built up Area allowed and plot area available. For instance, if FSI is 1 then on a plot of 100 square meters, one can build 100 square meters of built up area. The building can be higher than one floor. This means that higher the FSI, higher built up area is possible. In many regions, FSI is also referred to as Floor area ratio (FAR), or floor space ratio (FSR). The new Development Control regulations (DCR), effective from January 2012, have included balconies, flower beds, terraces, voids and niches in the FST.
CRZ refers to coastal areas up to the territorial water limit. Under the new Coastal Regulations Zone rules issued by the Ministry of Environment and Forests, the ‘no-development-zone’ area has been limited from 200 meters to 100 meters from the high tide line. Also, the coastal land is now divided into four zones: CRZ I comprising ecologically sensitive areas like mangroves and mudflats, CRZ II comprising developed areas, CRZ III consisting of underdeveloped areas, not classified ecologically sensitive and CRZ IV imbibing territorial waters from the low tide line to 12 nautical miles into the sea.
An IOD is permission given to the developer to undertake redevelopment on a plot by the Municipal Corporation of Greater Mumbai (MCGM). However an IOD alone is not enough to demolish the existing building; the developer has to attain about 40 clearances from the MCGM before he/she can initiate his work. After these clearances are obtained, the developer is entitled to get a Commencement Certificate.
A conveyance deed is a document executed to transfer the title of land and building, in favour of the society. As per housing society by laws, the main objective of formation of the society is to obtain the conveyance and if it is not given by the builder within four months from the date of registration of the society, a case can be filed against the builder to obtain he conveyance, As per Section 13 of the Maharashtra Ownership Flats Act, 1963, failure to give conveyance is an offence and the builder can Be imprisoned for up to three years or fined or both.
These are charges taken by the society towards the maintenance of the property which includes but is not limited to the costs of generator sets, security, landscaping, and utility charges for common areas.
Valuation process evaluates the market value of the property. Demand and supply forces in the market and factors like type of property, quality and constructions, its location, infrastructure and available maintenance are taken into consideration. Market value of the property is the price that the property commands in the open market.
An MOU describes a bilateral or multilateral agreement carried out between the parties, indicating an intended common course of action. Although an MOU is signed where the parties cannot create a legally enforceable agreement.
MMRDA was set up on January 26, 1975 under the Mumbai Metropolitan Region Development Authority Act, 1974 by the Government of Maharashtra as an apex body for planning and co-ordination of development activities in the Mumbai Metropolitan Region comprising of Mumbai and its influence area. Its functions include development planning for the region, provision of regional infrastructure, promotion of growth centres, and provision of development finance and development co-ordination.
The Government of Maharashtra founded Maharashtra Housing & Area Development Authority (MHADA) in 1977 by passing an enactment to carry out works of Housing and Areas Development across the state. There are nine regional boards under the jurisdiction of the Authority namely – Mumbai Housing and Area Development Board, Mumbai Buildings Repair and Reconstruction Board, Slum Improvement Board, Konkan Board, besides Pune, Nashik, Nagpur, Aurangabad and Amravati are the regional boards. The authority has been engaged primarily in construction and selling housing to low and middle income groups in urban and semi-urban areas. In Mumbai, it has constructed about 30,000 housing units.
After construction is completed, the developer needs to obtain an Occupation Certificate from the MCGM. The OC is issued under the Maharashtra Ownership Flat Act. The document indicates that the building is constructed as per approved plans and adhering to local laws. The absence of an OC indicates loopholes in construction so it becomes difficult to get the required water and sanitary connections. On receipt of the OC, tenants can lawfully shift to their new homes.
Property tax is a levy issued by a government on a person’s real or personal property. The property is assessed to give it a value, and then that value is taxed. The amount of tax owed is determined by multiplying the fair market value of the property by the current tax rate. The amount taxed on a given property may change over time based on a reassessment of the property’s value. Typically, property tax is not increased as the value of the home naturally increases; the value of the tax generally remains based on the value of the property at the time it was purchased.
An authority formed by the Government of India for the rehabilitation of the population living in slums. Every slum built before 01/01/1995, is treated as a protected structure. Every slum dweller whose name appears in the electoral rolls as on 01/01/1995 and who continues to stay in the slim is eligible for rehabilitation by the SRA. Every eligible residential slum structure is provided with an alternative tenement, measuring 225 sq.ft. Preferably at the same site.
The Special General Body Meeting that chooses a developer to redevelop the society also selects an experienced architect or the Project Management Consultant who will represent the society and overview the construction until its completion.
Ready Recknor Rates is an annual statement of rates on which the stamps and registration department collects stamp duty from property purchasers. Currently in Maharashtra, the rate stands at 25 per cent.
The fees associated with getting the legal title registered in your name. This legal process takes place in the sub-registrar’s office in your local court.
Sale deed provides the buyer the absolute and undisputed ownership of the property. With this law, the seller transfers his right of property to the buyer. Subsequently, it is executed as per the sale agreement, after compliance of various terms and conditions detailed in the agreement.
Real Estate Stamp duty is a type of tax accumulation by the Government of India. Stamp duty is established on the agreement value or on the ready reckoner value whichever is greater.
It is the built up area plus proportionate area of common areas such as the lobby, lifts, shaft, stairs, etc. This is usually 25 per cent more that the built up area. This term is therefore only applicable in the case of multi-dwelling units or apartment complexes. The plinth area along with a share of all common areas proportionately divided amongst all unit owners makes up the super built up area. Developers usually include the common areas such as swimming pool, garden, clubhouse etc. to the super built up area.