What is market value?

Market value in relation to any property which is the subject matter of an instrument means the price which such property would have fetched if sold in the open market on the date of execution of such instrument or the consideration mentioned in the instrument, whichever is higher. The price which such property would have fetched if sold in the open market is determined on the basis of the Ready Reckoned issued each year.

Who is required to pay stamp duty and registration fee on purchase or lease of a flat or office?

Purchaser (whether on first sale from a developer or on resale of a flat) or a lessee of a flat or office is required to pay stamp duty and registration fee.

How is stamp duty paid in Maharashtra?

Stamp duty is payable by a pay order/ demand draft drawn in favor of “The ___________________”. The original instrument can be franked with the value of the stamp duty.

What is the procedure for registration of an instrument?

Once adequate stamp duty is affixed on an instrument and it is dated, signed by the parties and attested (where required) by witnesses, it can be lodged for registration after payment of the registration fee. All parties signing the instrument are required to attend the office of the concerned Sub Registrar of Assurances either by themselves or through their constituted attorney under a power of attorney to admit execution of the instrument.

A passport size photograph, original power of attorney, personal identification such as passport or income tax PAN Card, adequate Xerox Copies of the original instrument are some of the essentials required for registration. After lodging an instrument, it is registered and seal of the Sub Registrar is affixed on the instrument, thereafter the original instrument is returned back to the parties.

What is the procedure for registration of an instrument?

Once adequate stamp duty is affixed on an instrument and it is dated, signed by the parties and attested (where required) by witnesses, it can be lodged for registration after payment of the registration fee. All parties signing the instrument are required to attend the office of the concerned Sub Registrar of Assurances either by themselves or through their constituted attorney under a power of attorney to admit execution of the instrument.

Can a person grant a power of attorney for signing and registering instrument?

Yes. Persons residing abroad or those who travel frequently are advised to grant power of attorneys to facilitate better management of their flats. The system promotes transparency in transactions, clearly sets out mutual obligations of parties and increases clarity in response action, when required.

Which documents should a flat purchaser ask for at the time of booking a flat?

A flat purchaser can ask for the certificate of title issued by an advocate, which gives the history of the ownership of the land under construction. Other documents such as applicable municipal approvals and sanctioned plans can also be inspected.

How will a flat purchaser know that his next installment is due?

The sales team communicates with flat purchasers through call letters, telephone calls and e-mail informing them about outstanding payments towards cost of the flat, society deposits and other charges. Receipts are issued from time to time for payments made by flat purchasers.

How will a flat purchaser know if a building, which is under construction, in which he has booked a flat, is completed?

After completion of construction of the building, the municipal corporation issues the occupation certificate. The sales team sends out call letters informing flat purchasers about the same.

Can a flat purchaser carry out interior decoration works in his flat?

Yes if such work is permissible as per applicable rules and only after he has complied with requisite formalities and paid an interest free refundable security deposit as well as all other requisite payments. However, changes in outside elevation, color schemes, grills, RCC frame work; plumbing and electrical lines etc. are not permissible.

Does a flat purchaser require a No Objection Certificate from the Developer for availing of a home finance loan?

Yes. Financial institution requires a No Objection Certificate (NOC) from the Developer before considering an application for loans.

What formalities does a flat purchaser require to complete before taking possession of his flat?

Possession of a flat is handed over after receipt of all outstanding dues from a flat purchaser and completion of documentation. Time is required to clean the flat and inspect all amenities and fittings jointly with the flat purchaser and complete other requisite formalities. Source: Property Matters Made Easy, India Properties Institute of Real Estate.