FAQs
Are the titles of all Indburgh Projects clear?
Yes, titles are legally clear.
Does the Indburgh facilitate customization of our apartment?
Yes, subject to technical feasibility.
Are prices at Indburgh subject to escalation?
No escalation, once the initial booking amount is paid, the price is firm.
When can one sign the contract of purchase?
We can sign the agreement the very same day the payment of the initial amount is made.
What is the maximum amount of loan we get from banks?
We get a maximum of 85% of the total cost i.e. including car park, registration and other
What is valuation of property?
The valuation process evaluates the market value of the property. Depends upon demand and supply in the market, like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken in to consideration before the market value is decided.
What is market value? How is its stamp duty decided?
The price that a property can command in the open market is known as its market value. Stamp duty is based on the market value or the agreement value of the property, whichever is greater.
Are there any income tax considerations while transferring newly acquired property?
If the transfer takes place within three years of purchase, the income tax exemption under Section 54F of the Income Tax Act does not hold good.
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 the carpet area, built-up and super built-up area?
The area of an apartment or building, not inclusive of the area of the walls is known as carpet area. This is the area that is actually used and in which a carpet can be laid. When the area of the walls including the balcony is calculated along with the carpet area, it is known as built-up area. The built-up area along with the area under common spaces like lobby, lifts, stairs, garden and swimming pool is called super built-up area.
When there are apartments of different sizes in a complex, how is the maintenance charge calculated?
The actual area owned by the individual flat is the basis for calculation of maintenance charge.
Why do Co-operative Housing Societies collect a Sinking Fund?
Co-operative Housing Societies have a statutory obligation to collect a Sinking Fund. This is done so that in case the building needs to be repaired or reconstructed in the future except interior of the building, the society has sufficient funds to carry out the work. The amount to be contributed is decided by the General Body of the society. This fund may be used after a resolution is passed at the General Body meeting with the prior permission of the Registering Authority. This could be to carry out reconstruction, repairs, structural additions or alterations to the building as the architect thinks is required and certifies.
What are the charges to be paid while gifting property?
When a gift of property is made, a gift deed needs to be made by a lawyer. Stamp duty on the market value of the property also needs to be paid, as well as the necessary registration charges.
Can corporate bodies/commercial use residential properties as office space?
It is illegal to put residential properties to commercial use. However service-based industries are allowed to operate from residential areas, on the condition that they will vacate the property if any complaint is received from other residential owners.
NRIs
Do NRI's require permission of Reserve Bank to acquire immovable property in India?
No. NRI's do not require any permission to acquire any immovable property in India other than agricultural / plantation property or a farm house.
Do NRI's require permission of Reserve Bank to transfer immovable property in India?
No. NRI's do not require any permission to transfer any immovable property in India. Permission is required only in the case of transfering of agricultural or plantation property or farm house to another citizen of India NRI or PIO.
Do PIO's require permission of Reserve Bank to purchase immovable property in India for their residential use?
Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property other than agricultural land/farm house/plantation property, in India. They are, therefore, not required to obtain separate permission of Reserve Bank or file any declaration.
In what manner should the purchase consideration for the immovable property be paid by PIO's under the general permission?
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from any non-resident accounts maintained with banks in India.
Can such property be sold without the permission of Reserve Bank?
Yes. Reserve Bank has granted general permission for sale of such property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India.
Can NRI's/PIO's rent out the properties (residential/commercial) if not required for immediate use?
Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income is eligible for repatriation.
Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?
Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to NRI's for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of loan margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investor's NRE/FCNR/NRO Accounts.
Can authorised dealers grant loans to NRIs for acquisition of a flat/house for residential purposes?
Authorised dealers have been granted permission to grant loans to NRI's for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts.
Can authorised dealers grant housing loan to NRI's where he is a principal borrower with his resident close relative as a co-applicant / guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?
Yes. Such housing loans availed in rupees can also be repaid by the close relatives in India of the borrower.
For further information please visit the FAQ Section of http://www.rbi.org.in
Home Loans
Residents/NRIs can avail financing assistance in the form of housing loans, for purchasing residential properties in India. These loans are available through leading financial institutions like HDFC, LIC, Canfin Homes, Citibank, ANZ Grindlays, Vysya Bank, SBI, Corpbank and ICICI.
Some of the features of these loans are:
The applicant must be an Indian passport holder.
Loan amounts are available up to Rs 1 crore (or 85%) of the cost of the property, whichever is lesser. Processing and administrative charges extra.
Loan eligibility is decided by the repayment capacity of the individual. Repayment capacity takes into consideration income, age, qualification, number of dependents, other income, amounts and a few other items.
Between 5 and 10 years, rates of interest vary from 7.75% to 9%.(bank guidelines)
Repayment period ranges from 5 to 20 years or on superannuation or on completing 60 years of age.
The loan is repaid in the form of Equated Monthly Installments (EMIs).
The security for the loan would be the equitable mortgage of the property financed. This is created by the deposit of the original title deeds of the property with the HFI.
Local guarantors will also be required in the case of a few institutions.
Copies of the following documents have to be submitted along with the application for the loan to the institution.
Employment contract
Latest salary slip
Latest work permit
Visa stamped on the passport
Power of Attorney to a local individual
Receipt of payments made for purchase of the property
Agreement of Sale
Interest rates and EMIs are subject to change without notice. Check with the financial institutions for prevailing interest rates.
A salaried applicant should be abroad for at least a year, and a self-employed applicant for 3 years.
FAQs
Are the titles of all Indburgh Projects clear?
Yes, titles are legally clear.
Does the Indburgh facilitate customization of our apartment?
Yes, subject to technical feasibility.
Are prices at Indburgh subject to escalation?
No escalation, once the initial booking amount is paid, the price is firm.
When can one sign the contract of purchase?
We can sign the agreement the very same day the payment of the initial amount is made.
What is the maximum amount of loan we get from banks?
We get a maximum of 85% of the total cost i.e. including car park, registration and other
What is valuation of property?
The valuation process evaluates the market value of the property. Depends upon demand and supply in the market, like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken in to consideration before the market value is decided.
What is market value? How is its stamp duty decided?
The price that a property can command in the open market is known as its market value. Stamp duty is based on the market value or the agreement value of the property, whichever is greater.
Are there any income tax considerations while transferring newly acquired property?
If the transfer takes place within three years of purchase, the income tax exemption under Section 54F of the Income Tax Act does not hold good.
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 the carpet area, built-up and super built-up area?
The area of an apartment or building, not inclusive of the area of the walls is known as carpet area. This is the area that is actually used and in which a carpet can be laid. When the area of the walls including the balcony is calculated along with the carpet area, it is known as built-up area. The built-up area along with the area under common spaces like lobby, lifts, stairs, garden and swimming pool is called super built-up area.
When there are apartments of different sizes in a complex, how is the maintenance charge calculated?
The actual area owned by the individual flat is the basis for calculation of maintenance charge.
Why do Co-operative Housing Societies collect a Sinking Fund?
Co-operative Housing Societies have a statutory obligation to collect a Sinking Fund. This is done so that in case the building needs to be repaired or reconstructed in the future except interior of the building, the society has sufficient funds to carry out the work. The amount to be contributed is decided by the General Body of the society. This fund may be used after a resolution is passed at the General Body meeting with the prior permission of the Registering Authority. This could be to carry out reconstruction, repairs, structural additions or alterations to the building as the architect thinks is required and certifies.
What are the charges to be paid while gifting property?
When a gift of property is made, a gift deed needs to be made by a lawyer. Stamp duty on the market value of the property also needs to be paid, as well as the necessary registration charges.
Can corporate bodies/commercial use residential properties as office space?
It is illegal to put residential properties to commercial use. However service-based industries are allowed to operate from residential areas, on the condition that they will vacate the property if any complaint is received from other residential owners.
NRIs
Do NRI's require permission of Reserve Bank to acquire immovable property in India?
No. NRI's do not require any permission to acquire any immovable property in India other than agricultural / plantation property or a farm house.
Do NRI's require permission of Reserve Bank to transfer immovable property in India?
No. NRI's do not require any permission to transfer any immovable property in India. Permission is required only in the case of transfering of agricultural or plantation property or farm house to another citizen of India NRI or PIO.
Do PIO's require permission of Reserve Bank to purchase immovable property in India for their residential use?
Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property other than agricultural land/farm house/plantation property, in India. They are, therefore, not required to obtain separate permission of Reserve Bank or file any declaration.
In what manner should the purchase consideration for the immovable property be paid by PIO's under the general permission?
The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from any non-resident accounts maintained with banks in India.
Can such property be sold without the permission of Reserve Bank?
Yes. Reserve Bank has granted general permission for sale of such property. However, where another foreign citizen of Indian origin purchases the property, funds towards the purchase consideration should either be remitted to India or paid out of balances in non-resident accounts maintained with banks in India.
Can NRI's/PIO's rent out the properties (residential/commercial) if not required for immediate use?
Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income is eligible for repatriation.
Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?
Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to NRI's for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of loan margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittances or out of funds held in the investor's NRE/FCNR/NRO Accounts.
Can authorised dealers grant loans to NRIs for acquisition of a flat/house for residential purposes?
Authorised dealers have been granted permission to grant loans to NRI's for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investors' NRE/FCNR/NRO accounts.
Can authorised dealers grant housing loan to NRI's where he is a principal borrower with his resident close relative as a co-applicant / guarantor or where the land is owned jointly by such NRI borrower with his resident close relative?
Yes. Such housing loans availed in rupees can also be repaid by the close relatives in India of the borrower.
For further information please visit the FAQ Section of http://www.rbi.org.in
Home Loans
Residents/NRIs can avail financing assistance in the form of housing loans, for purchasing residential properties in India. These loans are available through leading financial institutions like HDFC, LIC, Canfin Homes, Citibank, ANZ Grindlays, Vysya Bank, SBI, Corpbank and ICICI.
Some of the features of these loans are: