Real Estate
Consistent growth in India's economy has led to a boom in incomes of the middle class. Rapid urbanization of smaller towns has resulted in a sharp growth of the real estate industry. Traditionally it has been the most preferred investment option. Now, it is the investment option beyond compare.
Come what may, the appeal of this sector has been so strong that it has overtaken all other investment options such as the capital, debt, and bullion markets. It is attracting investors by offering a possibility of stable income yields, good capital appreciation, tax structuring benefits, and higher security in comparison to other investment options.
The potential of India's property market has transformed the skyline of her cities, further driving investments in all real estate segments, from commercial and residential to retail, industrial, hospitality, health care and so on.
Real Estate: Basics
What is the difference between the lease agreement and the Leave and License agreement?
A Lease, defined under Section 105 of The Transfer of Property Act, 1882, is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.
License is defined in Section 52 of the Indian Easements Act,1882. License does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration.
A lease deed needs to be stamped and registered. The amount payable towards the lease deed's stamp duty is more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements.
What is the difference between Built-Up Area, Super Built-Up Area, and Carpet Area?
Carpet Area: This is the area of the apartment that does not include the area of the walls i.e. the area of the apartment that a carpet can cover.
Built-Up Area: This is the area of the apartment that includes the area covered by the walls.
Super Built-Up Area: This includes the built-up areas such as the lobby, lifts, stairs etc. This term is therefore only applicable for multi-dwelling units, such as flat complexes.
Why is it considered necessary to register a property? What is the purpose of registration?
By registering the transaction of an immovable property, it becomes permanent public record. This is a notice to the general public. Those getting transfer of property should verify whether such property has been previously encumbered.
According to the Transfer of Property Act, 1882 right; title or interest can be acquired only if the deed is registered.