Legal Advice

1. What documents and formalities are required while buying property?
Basically ID proof, Address proof & Pan Card is required at the time of buying property. ID proof such as Voter ID card, Passport, Driving License, Ration Card etc. For address proof: driving License, Passport, Govt. bank statement etc. Always be careful of the sale deed/agreement and also check the required clearance certificates from concern departments & in case of resale check the complete property chain which is mentioned in the deed.

2. What things you should check at the time of signing agreement?
Always go through the agreement/deed thoroughly before signing it. Before finalize check legal title, required clearance certificates, builder & project validity, tower name & flat no which is allotted to you, Details of area including super area, covered area, carpet area, costing of the property, also check about other charges & any kind of hidden charges because it has to from buyer’s pocket, payment plan, date of possession, penalty in case of delay.

3. How do you know that a project has legal approvals from authorities?
The best way to check legal aspect of any project is to go with bank funding. Mostly banks start disbursement after checking approvals & other required clearance from concern authority. Ensure that the title of the property which you want to buy should be clear. Defective title will create problems. Ensure that building has been constructed as per the pre approved plan. Ensure that the developer has approval certificates from the Electricity board, Water & sewage board & other required approvals from concern departments. Ensure that agreement of sale deed is duly stamped, executed & registered & it is in your custody.

4. What are the taxes you have to pay while purchasing property?
If someone buying any property then you have to pay taxes as per govt. tax clause. You have to pay service tax, VAT and stamp duty on the total amount of the purchase. Stamp duty will charge at the time of registration of the property.

5. When is the transaction of sale considered complete?
The transaction of sale is considered complete when either the possession is given or conveyance deed is registered. When all conditions which are mentioned in the agreement is fulfilled, it is considered as completed deed.

6. When are capital gains applicable and how can capital gain tax be saved?
Capital gain is applicable when the sold property has been withheld by a person for period of more than 3 years from the date of purchase/ possession. The sale proceeds are invested in a residential property which is bought one year before the sale of property or two year after the sale of first property. The new property should bought after the sale of first property. Capital gain tax also can be saved by investing the sale proceeds in capital gain bonds.