What constitutes conclusion of sale of a property?
An agreement of sale, coupled with actual possession of the property would be considered as a conclusion of the sale. Usually, the entire amount is paid at the time of handing over possession.

What is a Sale Deed?
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. This document is executed subsequent to the execution of the sale agreement and after compliance of various terms and conditions detailed in the sale agreement.

What is meant by valuation of property?
The valuation process evaluates the market value of the property. Demand and supply forces operating in the market, as well as other factors like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken into consideration before the market value is decided.

Who is the appropriate authority for knowing the market value of the property?
The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property.

What is Stamp Duty and who is liable to pay the Stamp Duty, the purchaser or the Developer?
Stamp Duty is a tax, similar to sales tax and income tax collected by the government, and must be paid in full and on time. A stamp duty paid instrument/document is considered a proper and legal instrument/document. The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary. Section 30, of Bombay Stamp Act, 1958 states the liability for payment of stamp duty.

What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?
Market value of the property as ascertained by the stamp duty authorities on the basis of a ”Ready Reckoner” which gives the per sq. mtr. value of each village, zone and sub-zone . The ready reckoner is normally published on 1st January of every year. The Stamp Duty is payable on the agreement value of the property or the market value which ever is higher

Usually different rates for stamp duty are applicable for residential and non-residential property. In Maharashtra, the rate of stamp duty is 5% for both residential and commercial property. However, for residential property there is a slab wise concession.

How much is the Registration Fees on sale of immovable property?
The registration fee in case of sale of immovable property is 1% of the market value or Rs 30,000, whichever is lower. There could be some additional charges for scanning of documents were the office of the Sub Registrar has been computerized.

How often does the state government issue a ready reckoner indicating market value of properties?
A ready reckoner is published on the 1st day of January every year.

What are the prerequisites for a document for sale of a flat or shop or office to be registered in Maharashtra?

1. The following are the prerequisites for registration of a document for sale in Maharashtra:-
2. Duly completed, stamped and signed instrument printed on single side only.
3. Receipts for payment of Stamp Duty and Registration Fees.
4. Property Register Card
5. Commencement Certificate issued by the Municipal Corporation for premises in a building under construction and Occupation Certificate for a completed building.
6. Property Tax Bill in case of depreciation in market value for old buildings

Do I have to go personally for the registration?
It is advisable to go personally but in case it is not possible, a power of attorney can be issued to some other person. This Power of Attorney should mention all the relevant clauses and preferably be registered before the Sub Registrar.

Will someone escort us for the registration?
Yes, the POA holder of the developer is present at the member escorts our customers for registration.

When and where should a document be registered?
Every document which is required to be registered under the Registration Act, except a Will, should be presented at the office of the Sub Registrar of Assurances for the registration within the prescribed time of four months from the date of its execution. A document is registered with a sub-registrar appointed by the State Government, under the Indian Registration Act, 1908.

Can a document be registered after a lapse of four months?
Yes. A Deed of Confirmation with the original document attached is signed and registered.

What are consequences of non-registration of a document?
An instrument, which is not registered, is inadmissible as evidence.

Is Stamp Duty payable when a flat is from a relative to other relative by way of a gift?
Yes. Stamp duty has to be paid on the gift but the rate of duty is lower. In Maharashtra the sale of a flat attract levy of duty of 5% and a gift attracts levy of 2%.

What are the consequences of delay or non-payment of Stamp Duty on an instrument?
Delay in payment of stamp duty attracts penalty at the rate of 2% per month on the amount of the stamp duty that has to be paid, up to a maximum of twice the amount of the stamp duty payable. An instrument, which is not properly stamped, is inadmissible as evidence.

What is adjudication?
In case you wish to ascertain the correct stamp duty payable on an instrument, an application can be made for to the Collector of Stamps.

What constitutes completion of the sale?
The transfer of a flat is concluded when you have an sale deed/ agreement for sale coupled with actual possession. Generally, in all cases the entire amount is paid simultaneously with the handing over of physical possession and signing of the transfer documents.

In whose name are the stamps required to be purchased?
The stamps are required to be purchased in the name of any one of the executors to the Instrument.

What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?
Market value means the price at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value which ever is higher.

Is a POA revocable?
Yes, a POA can be either revocable or irrevocable, depending on what sort of a POA one has made

Can a Power of Attorney be issued to someone else to register the document?
Yes, the same is required to be registered in the office of the Sub Registrar in the city you are staying in.

Can a Power of attorney be issued to someone else to register the document in case of being out of country?
Yes, the Power of Attorney Draft can be signed and attested by the Indian Consulate/ Indian Embassy/or local notary. Once the Power of Attorney is received in India, the same has to be submitted to the Collector of Stamps for adjudication. After the same is adjudicated the POA holder can submit the same at the time of registration of the document.

Types of Power of Attorneys?

1. Special Power of Attorney
2. General Power of Attorney. Both can be revocable or irrevocable and should confer the authority as desired by the person issuing the POA.

Can premises already encumbered to a bank be leased out to a Company with a high deposit and in case of a default who holds the first lien? And will the Company/Occupant be evicted?
Yes premises already encumbered to a bank can be leased out to a Company with a high deposit. However you may require the No-Objection of the bank. If the deposit monies are with you and in case if you default on payment to the bank, obviously you will continue to hold the deposit money. The Co./occupant can be evicted only if there is a provision to that effect in the lease Agreement.

Is registration of a Leave and License mandatory and what are the consequences if the same is not registered?
As per Section 55 of the Maharashtra Rent Control Act, 1999 registration of Leave and License Agreement is compulsory and it is the responsibility of the landlord to ensure registration. If the same is not registered, the landlord would be prosecuted and on conviction he’s subject to up to three months imprisonment or be subject to fine not exceeding Rs.5000/- or with both. Further in the absence of a Registered Agreement, the contention of the tenant, about the terms and conditions on which the premises have been given to him by the landlord shall prevail unless otherwise proved.

Is the leave and license agreement generally signed in multiples of 11 months or 12 months? Is there any stipulation of time?
Formerly leave and license agreements used to be signed in multiples of 11 months or 12 months. After The Maharashtra Rent Control Act, 1999 came into force from 1.3.2000 there is no stipulation as to whether leave and license agreement should be in multiples of 11 or 12 months, and there is no stipulation as to total time period. However, Leave and license agreement generally does not exceed three years.

Is registration of a Leave and License mandatory and what are the consequences if the same is not registered?
As per Section 55 of the Maharashtra Rent Control Act,1999 registration of Leave and License Agreement is compulsory and it is the responsibility of the landlord to ensure registration. If the same is not registered, the landlord would be prosecuted and on conviction he’s subject to up to three months imprisonment or be subject to fine not exceeding Rs.5000/- or with both. Further in the absence of a Registered Agreement, the contention of the tenant, about the terms and conditions on which the premises have been given to him by the landlord shall prevail unless otherwise proved.

What is the difference between lease and leave and license agreement?
Lease is defined under Section 105 of The Transfer of Property Act,1882 and a lease of immoveable property is a transfer of a right to enjoy such property for a certain time or in perpetuity on consideration to be rendered periodically or on specified occasions, while a license is defined in Section 52 of the Indian Easement Act,1882 and it does not create any interest in the premises in favour of the licensee excepting a mere right to use and occupy the premises for a limited duration. Both documents have now to be registered. A lease deed is required to be stamped and registered. However the stamp duty payable on lease is more than on Leave and License for a period up to three years. For a period exceeding three years the stamp duty is same for both agreements. The implications of entering into a lease agreement would be:

1. That stamp duty would have to be paid
2. That the document would have to be registered
3. That Municipal taxes may go up
4. Of course, Income-tax would have to be paid on your income; and
5. The question of Wealth-tax would have to be considered. One property is exempt from Wealth-tax. However, if you have any other property, this implication would have to be considered.

Can possession be handed over to do a Pooja?
While the possession cannot be handed over until completion of the formalities, temporary arrangement could be made to have the apartment kept open for a few hours for the purposes of performing the pooja.

From what date is the maintenance amount due?
The Maintenance amounts are due from the date the apartment is ready for possession

From what date is the Property tax due?
Property taxes area due from the date the unit is occupied or the date of completion certificate whichever is earlier.

When there are apartments of different sizes in a complex, how is the maintenance charge calculated?
Legally, the actual area owned by the individual is the basis for calculation of maintenance charge.

What is the purpose of collecting amounts towards Sinking Fund in Co-operative Housing Society? What should be the contribution from members towards Sinking Fund? When can the amount collected for Sinking Fund be spent by the society?
The purpose of collecting Sinking Fund is to accumulate and keep sufficient funds with the society so that the property of the Society i.e. building can be reconstructed in future. The contribution to Sinking Fund is a statutory obligation. Sinking Fund has to be contributed as decided by the General Body of the Society. It should be at least @1/4 per cent per annum on the cost of the each flat excluding the cost of the Land. On the resolution passed at the meeting of the General Body of the Society and with the prior permission of the Registering Authority, the Sinking Fund may be used by the Society for reconstruction of its building/s or for carrying out such structural additions or alterations to the building/s as in the opinion of the Society’s Architect is required for carrying out such heavy repairs as may be certified by the Architect. However permission is not usually granted by the Registrar to withdraw amounts from the sinking fund.

What are non-occupancy charges?
Non occupancy charges are levied by the society when the flat owner himself does not reside in the flat but rents it out to a third party.