Home buying simplified

Here are a few terms that are frequently used in the home-buying process. read on to know more about terms that you should be familiar with

Here are a few terms that are frequently used in the home-buying process. Read on to know more about terms that you should be familiar with

Exemptions
There are innumerable ways and options available for saving capital gains. For example, invest in a residential house property or a flat to make investment, so as to see that capital gains are exempted. Likewise, if a person were to make the investment in REC or NHAI bonds, then also he would enjoy complete exemption from the long-term capital gain payable by him in respect of capital gains due.

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Leasehold and freehold properties
Leasehold properties (plot/built-up) are those in which perpetual leasehold has been granted by the title paramount in favour of the lessee. In such properties, the title paramount, ie., President of India acts through DDA, L&DO, Leasehold properties are not freely transferable. Depending upon the covenants of the lease deed, prior permission of the lessor is required to transfer the property.
Freehold properties are those where title paramount has conveyed the property in favour of the purchaser by conveyance/sale deed with no restriction on the right of the holder of the property to further transfer the property. Record of ownership of the freehold property can be ascertained from the office of the sub-registrar. It can be transferred by registration of sale deed.
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Ownership, as per IT laws
Ownership, for Income-Tax purposes, would be when one receives the possession. Even if payment is not made but possession is received, it will be treated as a sale transaction.

Completion of sale
The transfer of a flat is concluded when you have a 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.

Disclaimer
We at MCHI have done our best to ensure accuracy as also update the information, but in a dynamic real estate environment, things may change even as this booklet goes to print. As such, we would suggest you take legal/ expert advise before entering into any deal. We at MCHI are always there to answer your queries, and we look forward to being of assistance to you.