A whole new altitude in Luxury Living

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Is the investment in Real Estate safe?

In real estate like any other investment instrument, it’s not the timing but the TIME you stay invested for. It has been observed around the world that the returns of real estate has outperformed other avenues. Investing in the real estate usually needs patience and courage.

What should be my investment philosophy?

Property bought for residential purpose and for business should not be considered as investments per se.Investment is something that you put your money into, with an expectation to earn out of it. If you have some spare money than buying a real estate would be a good idea. Buying a commercial property would yield better ongoing income returns than residential property. It is true both in terms of appreciation as well as rent/lease incomes.

Always insist on buying a property in a prime location.


What is a title report/certificate? Is it compulsory?

Title report is a document issued by a solicitor after scrutinizing the land records with the government authorities. A notice is also published in the news paper inviting any claim on the said property by individuals, companies, govt. agencies, financial institutes, etc.It is advisable to get a title report done.

Title of land: Normally the land is clear for sale or purchase without any mortgage or right of any other persons.

Title of Construction (Building):
1. It means Construction is as per approved plan and permission.
2. Possession of construction as per permission
3. Use as per permission

What is FSI?

FSI stands for Floor Space Index decided by a governing body which all developers have to follow. It is a common index for all developers. It is usually decided in relation to the size of the road and/or area. It is to restrict unwanted development and haphazard growth.

What is the Super built-up, Built-up & Carpet?

1. Carpet area is the net area that you get for your premise (from inner edge of the wall to wall)

2. Built-up area means carpet area plus the area occupied by walls of your premises (from outer edge of the walls)

3. Super Built-up means the area you get for your premises plus the areas used for all common amenities like lift, stairs, passages, basement parking, etc. divided among all users.

After purchase, Can I put the property on rent?

This is a good business proposition. However, you should be careful in purchasing your property. Housing property gives you moderate returns while commercial properties can yield 9-12% annually. The most important aspect here is the location of the premise and the quality of the occupants of the building.

Can I get a loan to buy a property? and How much?

Yes, to purchase any kind of property land is available. Following are some link which might be useful to you. The loan amount will depend upon you own capacity to re-pay and your IT papers.Norms of some FI may defer from others, but by large a lot of you could get loans.

What is a BU?

BU means Building Use permission. This is a permit document issued by the local governing authority after checking if the property is built as per by-laws or not. It is only issued if the building is as plans.
It is usually issued after the building is finished construction.

To obtain BU permission after completion of construction, following things are required:
a. All progress reports are to be submitted compulsorily.
b. All structural drawings should be submitted along with application.
c. Lift inspector’s certificate should be attached.


What is a Development Plan (DP) and Town Plan (TP) Scheme?

Development Plan is blue print for proposed development of the city for next 10 years. It is called Macro level planning of the city. It shows:

• Zoning – Residential, Commercial, Industrial, Recreation, Agriculture, etc.
• Roads – new and widening of existing roads.
• Reservations
• Government Land

Town Planning Scheme

• It is micro level planning by which land lord surrender his 25 to 50% of land and will get Regular shape, approachable shape and approachable final plot.
• It includes plot level planning, Roads, drainage and water supply, electricity poles, etc.
• Reserved plots for dispensaries, schools, playgrounds, gardens, libraries, police stations, fire brigade, civic center, etc.

Infrastructure is designed for projected population to control or for guided growth or aimed survival density should be required to monitor. That can be possible by Building Control Regulations.


What is General Development Control Regulation (GDCR)?
It may be known as Building Control Regulation. It includes:
  • F.S.I.
  • Open space
  • Margin
  • Height
  • Built-up area
  • Use of building, etc.
What are the laws applicable during construction of a property?

Laws are applicable at Three Stages in Construction.
A. Before starting the construction or Purchasing/acquiring land.
• Land revenue code
• Tenancy code
• Transfer of property act
• Contract act
• Registration and stamp duty act
• Power of attorney/Hindu, Muslim succession act.
• Gujarat Town planning and Urban development act.
• Bombay provincial municipal corporation act.
• Local authority acts like port trust development authority, cantonment area authority.
• NOC from Airport Authority, Fire department, O.N.G.C., Railway Authority.
• General development control regulation
B. Laws to observed During the Construction
• Contract Act
• Labor Act
• Indian electricity Act/Rules
• Flat ownership Act
• NTC Act
• Co-operative society Act
• Consumer Act
• IT Act
• Company Act
• Indian Elevator Act
• Service Tax
C. Laws applicable after Completion of Construction
• Building use permission under GDCR
• Flat Ownership Act


What are the responsibilities of Architect/Engineer, Structural Eng., Site Supervisor, and Local Authority Officers?

• To make plan as per GDCR and follow the NBC wherever necessary.
• To supply working drawings at site
Structural Engineer
• To make structural design confirming to is Codes and NBC.
• To supply detail working drawings at site.
Duty of Clerk/Supervisor
• To execute work at site as per drawings and details given by Architect Structural Designer.
• Quality control at site.
Local Authority
• As per GDCR, progress report should be submitted to local authority at following stages:
• At plinth level or ay basement slab level (before casting the slab).
• First Storey
• Middle Storey slab level.
• Last Storey.

The competent authority should check the progress and convey the decision within 7 days to the owner so that any error in construction can be identified and be rectified at proper stage without heavy losses.


What documents should I put together before Purchasing a Property?

Points to be considered while Purchasing Properties*:
• Approved plan from a Competent Authority.
• Title clearance certificate from reputed lawyer/solicitor.
• Plot/tenement/row house/shop/office allotment letter with number, floor and area in sqyds/sqft/sqmt/viga
• Society/NTC/Company Name
• Society Registration #
• Society Registration Date
• Name of Village
• Final Plot (FP) #
• Town Planning (TP) scheme #
• Survey #
• Name of Taluka
• Possession Letter
• Share Certificate #
• Share Distinctive #
• Location of the property  
   • North
   • South
   • East
   • West
• Seller’s info
   • Name
   • Age
   • Profession
   • Address
   • PAN #
• Area Police Station
• Who will bear the exp of sale deed?
   • Buyer
   • Seller
   • Both
• Who will bear the exp of transfer fee?
   • Buyer
   • Seller
   • Both
• No objection certificate from the Society to sell it to you and will transfer in your name
• No Due certificate from the society
• Certificate saying that there is no charge/lien charge on the said property by any party/financial institution/govt. dept., etc.
• If the seller is not the original member of the society then photocopy of his purchase deed, copy of Index and receipt of money paid against the notice of valuation.
• Possession receipt at the time of possession of property in which all description of Property should be mentioned.
• If resale property, then electric bill, property tax, maintenance, etc. should be paid up to last month.
• If resale property is constructed before 22 November, 2001 and without BU permission then E-Certificate under GRUDA is required.
• Documents should be notarized in which clarity regarding maintenance, common facilities, fire equipment maintenance should be mentioned.
• copy of the resolution for allotment of Tenament/flat/bunglow/office & allotment certificate
• Receipt of payment
• Copy of the 7/12
• Forms #6 & #8 from govt. for knowing the ownership history and any litigation regarding ownership.
• Sale deed
• Copy of the memorandum of Articles of the society/NTC/company
• Work commencement letter
• NA/NOC permission
• Development agreement
• BU permission
• Original Index and money receipt of stamp duty
• receipt of tax paid
*Some of the documents mentioned above might not be relevant in all the cases. This is only a suggestive outline. Depending upon the type of property and sale/resale the documents requirement would vary. Please take advice from your solicitor.


Ideas and information shared above may change from case to case.
However the idea is to give a first hand information on the most common terms, questions and concerns.
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