Understanding TDS on Property Purchases from NRIs In India, when purchasing property from a Non-Resident Indian (NRI), the buyer is required to deduct Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act. This TDS is a crucial component in property transactions involving NRIs. TDS Rates for Different Scenarios Long-Term Capital Gains (Property Held for More Than Two Years): The...
What is Fair Rent? Fair Rent refers to the rent determined by a rent officer or, on appeal, by a rent assessment committee under a regulated tenancy. This rent is then registered as the official amount that can be charged for a property, ensuring that tenants are not overcharged and landlords receive a reasonable return. Importance of Fair Rent in Regulated Tenancies In India, where housing...
What is Alternative User Value? Alternative User Value refers to the value of land or buildings based on a prospective use that differs from the current use. This concept is crucial in real estate, especially when assessing the potential for redevelopment or repurposing a property. Importance of Alternative User Value in Real Estate In the Indian context, where urbanization and development are...
In the realm of property ownership and real estate, nuisances can arise that affect neighbors or the surrounding community. When such issues occur, legal mechanisms are in place to address them. One such mechanism is the notice served on the owner(s) or occupier(s) of a property from which a private nuisance arises. This notice warns them of the intention to enter the land to abate the nuisance. Here’s...
Introduction to Strata Title Strata Title is a form of ownership where individual ownership is combined with shared ownership of common areas and facilities. This concept is widely used for apartments, townhouses, and commercial spaces in many parts of the world, including Australia, the UK, and Canada. However, in India, the concept is relatively new but increasingly relevant with the growing demand...
Introduction to Soft Launch in Real Estate In the Indian real estate market, the term "Soft Launch" is synonymous with "Prelaunch." It represents a crucial phase in the lifecycle of a property development project. Developers use this period to introduce a new project to a select group of investors or buyers before officially launching it to the broader public. Understanding the concept of a soft launch...
When purchasing property in India, it's essential to ensure that all legal aspects are clear and transparent. One such critical step in the property transaction process is the "Requisitions on Title." This is where the buyer formally requests additional information from the seller regarding the title of the property. Let's dive into the details of this process and its significance in the Indian real...
What is a Qualified Covenant? A Qualified Covenant is a legal restriction placed on a property or land that limits the rights of the owner or any party with an interest in the property. Unlike absolute covenants, which impose strict, unchangeable obligations, a qualified covenant includes conditions under which the covenant can be lifted or modified. This type of covenant is typically included in deeds...
When purchasing property in India, understanding the various payment plans available is crucial. One of the most popular payment plans is the Possession Linked Plan (PLP). This plan offers a structured and phased payment process that can ease the financial burden on buyers while ensuring that developers maintain progress on construction. What is a Possession Linked Plan (PLP)? A Possession...
What is a Kick-Out Clause? A Kick-Out Clause is a provision included in a real estate sales contract that gives the seller the option to accept an initial buyer's offer but also allows them to back out of the deal if a better offer comes along. This clause is designed to protect sellers from missing out on potentially better offers while still engaging in the initial transaction. How Does a Kick-Out...