Which documents are to be checked and verified before the purchase of a property?
Before purchasing a property you need to check and verify the documents namely:
- Approval layout and building plans
- Title search by an advocate
- Documents relating to ownership
- Environmental clearance
- Building permit by the municipal corporation
- Certificate of commencement
It is advised to refer a competent advocate before purchasing a property.
- Carpet area: it refers to the area of the apartment excluding walls.
- Built-up area: it refers to the area of the apartment including walls.
- Super built-up area: it refers to the built-up area in addition to common spaces such as lifts, lobby, etc. This is usually calculated for multi-family apartments.
A buyer is liable to pay the stamp duty unless stated otherwise. The stamps can be purchased in the name of either party of the deed.
Market value refers to the price at which property can be bought in the open market on the date of the agreement. Stamp duty is payable on higher of market value or agreed price.
If the stamps in possession of the person are spoilt or damaged, or the said stamps are no more required, the party can return such stamps to the collector.
The person should submit an application along with an affidavit stating the reason for the purchase of such stamps and also the reason for filing the refund application. The refund can be claimed once the collector agrees to refund the stamp duty only if the application has been made within 6 months from the purchase of such stamps. The stamps should have been purchased with a bonafide intention. For such a refund, the parties should not have signed the agreement on which stamps were fixed.
The collector may on receiving the application refund the amount after deducting such sum as may be prescribed.
Yes, as per Indian Stamp (Madhya Pradesh Amendment) Act, 2107, stamp duty is chargeable on gift deed.
A number of instruments namely the following attract stamp duty:
- Agreement to sale
- Conveyance Deed
- Exchange of property
- Gift deed
- Partition Deed
- Power Of Attorney
- Settlement deed
- Transfer of lease
The sub-registrar in whose district the property is located is eligible for determining the market value of a property.
Yes, a property transaction can be done by someone on behalf of the owner by generating a Power Of Attorney (POA). The owner can give the POA to anyone so that in his absence transactions like registration, possession, execution for agreement for sale or agreement for leave and license, etc. can be taken care of. The owner can also provide for specific POA i.e. only for some specific purpose.
The property that is free from the ownership of any person except the owner. The owner enjoys the state of perpetuity and the land can be used for any purpose after taking the local permissions.