Legal Information Regarding Various Properties
1. Broadly There are 6 Types of Properties within City Limits.
- Leasehold Plot of Nazul
- Leasehold Plot of NIT
- Leasehold Plot of NMC
- Malik Makbuja
- Layout cleared under Gunthewari by NIT. (under 572/1900 Layouts).
- Plots which are still under unauthorized layout and cannot be immediately regularized.
2. Properties in Gramin Area - Now called as Nit Metro Area
There are 2 kinds of properties out of Municipal Corporation area.
Proper Non Agricultural and Town Planning Sanctioned Layout plan, attested by The Collector, Nagpur.
Layout Sanctioned by NIT as they have been given special powers vide resolution of the State Government.
Person/Firm either may purchase a Flat constructed on aforesaid types of Plots or may purchase plots of these types. A proper No objection certificate is required for purchasing these flats/shops or plots
in case the property is Leasehold from the respective departments. In case of Layout cleared under Gunthewari NOC of NIT is required, although it is not mandatory for seller to obtain. Also in case of Malik
Makbuja plots no NOC is required from any department at the time of registration of the Sale Deed. Obtaining NOC from Society is also no more mandatory, although it is advisable to obtain before completing
the Sale Transaction in case of regularized, good and reputed societies.
In Metro area obtaining of NOC from any department is not required while selling/reselling Plot/Flat.
3. Stamp Duty Required
A. IN CITY LIMITS
6.5 % of the sale value or market value (As Determined by Ready Reckoner) Whichever is Higher. & 1 % Registration fees on the sale value or Market value whichever is higher but such Registration fees shall not exceed 30,000/-
B. IN GRAMIN AREA
5.5 % stamp duty of the sale value or market value whichever is higher.
1 % registration fees on the sale value or market value whichever is higher but such registration fees shall not exceed 30,000/-.
(4.5 % stamp duty is charged in few gramin areas which are mentioned in the ready reckoner on sanctioned Layouts, Plots and Flats).
for transfer of agricultural land in gramin area stamp duty of 4.5 % is charged.
4. Various Modes of Transfer
Broadly a property can be transferred by way of Sale, Gift, Release, by way of Will. Except Will all other modes should be registered before the Sub registrar by paying adequate Stamp duty and registration fees. Will is not compulsory to be registered.
5. Sub Registrars Offices
In Nagpur City there are 10 registrar offices, out of which 8 registrar offices handle documents relating to City (within corporation limits) and 2 registrar offices handle documents relating to out of City limits (i.e NIT Metro areas and adjacent areas). City registrar offices are presently situated at the District Court premises, Khamla Square, Sakkardara premises and Mahal area. Gramin registrar offices are presently situated at Sadar and Khamla areas.
6. Franking And Registration fees Payment
Earlier Government had appointed Stock Holding Corporation of India to handle the franking work (i.e payment of Stamp duty to the government) and registration fees could be paid by way of pay order of any bank). However now only few banks have been now authorized to accept the payment of Stamp duty (Stock holding license has not been renewed). Government has also launched E-payment of Stamp duty and registration fees but it is yet to be implemented in the Nagpur city but can be expected to start soon.
7. Online Registrars Offices
Government has also connected all the registrar offices of Maharashtra online thereby reducing the fraudulent practices which were earlier going on. Also the site www.igr.maharashtra.co.in relating to search of any property and number of transactions of a property is a good initiative by the Government to curb fraudulent practices and is very helpful for the citizens.
8. Few Useful Provisions in Transfer of Property and Registration Act
In case you wish to purchase a property but unable to be present before the Sub registrar at Nagpur you can sign a Power of Attorney only to purchase and appoint a Attorney and he shall remain present before the Sub registrar to sign various papers and the property shall be purchased and mutated in your name.
In case you wish to sell your some property to somebody and that person wishes to purchase your property then you need not to execute and register two sale deeds and pay stamp duty on every transaction but you can simply sign a Exchange Deed with that person and stamp duty shall be paid only on one property, value of which is higher amongst both the properties.
9. Our 24 X 7 Free Legal Help for you
In case you have any query relating to this article or any other query relating to property, please E-mail to: firstname.lastname@example.org. In all probabilities your query shall be answered within 48 hrs positively.
Looking to buy a house? some important tips for prospective buyers.
Market Research:A common mistake people make is that of isolating their deal from the market environment. The property prices, value appreciation and the impact any investor's bargaining capacity will have on the final prices is dependent on the market environment. A thorough study of these market trends will help you get a realistic idea about the final asking-price of the property as well as enable you to forecast its rate of appreciation better.
Credibility of the Builder: Before purchasing a property one should investigate the credibility of the builder. This is a combination of a few factors: the builder's past projects, their performance in the primary and secondary markets, their vacancy rates, quality of construction, rate of appreciation in value, current demand in the market and number of future projects that are bring undertaken. All this will help ascertain the reputation of the builder.
Personal Budget Limitation: Have you calculated the percentage you want to invest in real estate? For any investment, one should be very particular about the money to be infused in this sector as this is most likely to be a one time purchase made in an entire life time. Ensure that the rate of the EMI does not at any cost exceed 30% of your net monthly income.
Qualification for loan: Do make sure you get prequalified for the loan so that you only look for investment properties that fall within your budget.
Examination of property in terms of quality: In case of residential property, one should self-examine the building regarding the construction technicalities which also include examination of plumbing, electrical, power and security system provided by the builder.
Growth prospects in terms of its resale value: Location is the most important factor that contributes to the future value appreciation of any property. Look at its 'communication quotient' which is basically its connectivity, the quality of insfrastructure that surrounds this property, markets and other amenities such as bank-ATMs, schools, medical centres and so on. All these factors directly impact potential in terms of resale value.
Transparency in terms of price: Thoroughly recheck the cost to be incurred for purchase of the property and club all variable cost for the final payment to be made mentioned in the sale deeds so that there is no room for any hidden cost involved later. This will also help you negotiate a better deal with the owner/seller.
Payment plan: Before investing in any of the properties one should scrutinize the payment plan options available with the developer so that payments can be done according to one’s feasibility. Do not forget to calculate the cost of money which is essentially the return that you would get on your money if you were to simply put this in a bank or any other simple saving instrument such as FDs.
Middlemen’s review: Be wary of the nature of influence that the middle-person or broker is weilding on the transaction. While they play a crucial role in guiding through technical aspects, the paper work etc. you must be sure that there is no hidden fine print.
Perusal of property: Check the specifications in terms of promised amenities in and around the project, it should be properly mentioned in the agreement as well.
Vastu: Looking at the current trends in the real estate market one can also look at Vastu options available at the property. In case you have to incur additional expenditure on Vastu corrections, this should be factored in your final cost.
Design and architecture: Many end users look out for recent trends and international patterns when it comes to design and architecture. So, before purchase of property one should also look into such options available with the developer.
Transparency: During purchase of a flat/property, there should be no ambiguity related to covered area, super built-up area and total built up area. The covered area is the space available for flooring a carpet, super built-up area is the carpet area including the wall, balcony space and other areas whereas the total built up area is the super built area plus the corridor space, garage and alley. The covered area is generally 30 per cent less than the super built area.
Private equity ratio: Always ensure that the P/E ratio i.e. (Return on investment over rent received), of one’s investment is below 16 to be on the favourable side.
Legal Papers: The significance of the legal documents like title deed, conveyance deed etc is of prime priority, which should be taken care of even before one decides to invest in the property.
What you must check before signing on the dotted line?
- Noting of the appropriate names in the Property card
- Approved Location Plan stating the right locations
- City survey plan from the appropriate authority and, or survey plan from the revenue department.
- Layout Plot plan approved by the local authority.
- Architect certificate about the Layout Plot - Clarity on the common areas and the facilities by each of the entities or the structure constructed or to be constructed on such Layout Plot.
- Latest Title and Search Report for minimum of last 25 years from an advocate/Solicitor regarding the subject property.
- Non-Agricultural Order attached along with the appropriate clearances from the authorities.
- Clearance Certificate under Urban Land Ceiling Act, 1976 giving clear noting of the subject property
- Building/Structure Plan approved by the appropriate authority as per the Development control rules and regulations
- Clear Commencement Certificate
- Clear Completion Certificate
- Clear Occupation Certificate
- Systematic List of Flat Purchasers
- Proof of payment of Stamp Duty
- Registration compliances of the Subject property
- Development agreement or agreement for sale executed between the landlord and the builder for development or for transferring the right, title and interest in the land in favour of
- Any other correspondence regarding the land or building related documents or any other papers in support of the application.
- Legal notices sent to the builder and other interested parties to execute the conveyance deed or declaration as provided under Maharashtra Apartments Act, 1970 in favour of the
applicant/s, if any
- Draft conveyance deed/Declaration proposed to be executed in favour of the applicant
- Consulting a good property lawyer for better clarity is suggested before finalizing any transactions and for any other needed compliance for a smooth home buying process.