As GST does not apply to the resale of properties that have already obtained an Occupancy Certificate but applies to new and upcoming projects, we will focus our attention on the properties under construction. For these properties, GST has become mandatory from 1st July 2017. Even while they attract GST, the stamp duty will continue to stay and needs to be paid at the time of registration.
The Real Estate (Regulation and Development) Act, 2016 (the “Act”) commonly known as RERA is a consumer centric law framed to protect the rights of property buyers in India. In our previous blog, 10 things you should know about the new Real Estate Act [2016], we have covered some details on RERA. One thing peculiar about this Act is, it did not come into full force across the country overnight but provided provision for States to come up with their own set of Rules and establish Regulatory Authorities within a time frame of six months. The remaining sections were notified during this year and 21 states and union territories have already notified RERA Rules and are in the process of implementing them.
Whether you plan to buy a property or already own one; whether you are a home buyer or a home owner, you should know the legal documents that establish absolute ownership over the Property. When we talk about Sale, there are two terms which are widely used i.e. Sale Deed and Agreement to Sell. Many times we have come across buyers who hold Agreement to Sell and mistake it for the Sale Deed. Lack of understanding of the difference could lead to grave errors and at times, dire consequences.
At times, the three “L”s can be quite confusing; “Lease”, “Leave and “License”. The terms ‘Lease Agreement’ and ‘Leave and Licence Agreement’ are often misunderstood as the same thing. We are frequently asked these questions- “Which type of Agreement will protect my interests?” “Which agreement ensures my ownership remain secure?”.
To understand these better, let’s look at a scenario, where “A” is the owner of a property who wants to rent his premises “X”, and “B” is someone who needs a premise to stay for a short period. Let’s see in this situation which agreement is more suitable.
In order to ensure that the rightful interest of an individual on a property is not diluted, we need to look at the seven fundamental differences between these two agreements which are: