Definitions
Carpet Area
Carpet area, as defined by the Real Estate (Regulation and Development) Act, 2016 (RERA), refers to the net usable floor area of an apartment. It excludes the area covered by external walls, service shafts, exclusive balconies or verandas, and open terrace areas. However, it does include the area covered by internal partition walls.
Super Built-up Area
Super built-up area comprises the built-up area plus the proportionate area of common spaces such as lobbies, lift shafts, and stairs.
Built-up Area
The built-up area is the actual space utilized within an apartment. It includes the carpet area along with the thickness of outer walls and balconies.
Agreement for Sale
An agreement for sale outlines the terms and conditions agreed upon by the parties involved in the sale of a property. It legally binds both parties and serves as the basis for drafting a conveyance deed.
Total Consideration
Total consideration refers to the amount payable for a specific unit and its related properties. It excludes additional charges such as stamp duty, registration fees, municipality taxes, and other levies imposed by authorities.
Facility Management Company
A facility management company is appointed by the developer or association to oversee the maintenance and upkeep of buildings within a project. They are responsible for providing maintenance services within the designated buildings.
Earnest Money
Earnest money, a percentage of the total consideration amount as specified in the sale agreement, is paid by the purchaser. It serves as a form of security and may be forfeited by the seller in case of breach of the agreement by the purchaser.
Common Parts and Portions
Common parts and portions refer to areas, facilities, and portions of the building accessible to and enjoyed by all flat owners and occupants.
Force Majeure
Force majeure refers to unforeseeable events or circumstances beyond the control of the developer. These events, despite reasonable diligence or precautionary measures, may adversely affect the developer’s ability to fulfil obligations outlined in agreements.
POSSESSION & REGISTRATION
Completion Date
The completion date specified in this Agreement represents the maximum time allotted, barring any delays due to Force Majeure Events, for construction to be completed and the Offer of Possession Letter to be issued to purchasers.
Completion Certificate
A completion certificate (CC) is a document obtained by the builder from municipal authorities upon the completion of a building. It certifies that the new construction complies with all safety regulations and norms.
Commencement of Maintenance Charge
Maintenance charges commence from the date the builder offers possession of the property to the customer.
Possession Letter
The possession letter is issued by the developer to the buyer, indicating the date on which possession of the property will be granted.
Holding Charge
In the event that the purchaser fails to take possession of the unit within the stipulated time frame as per the Offer of Possession Letter, the developer may levy holding charges, as defined in the sale agreement.
House Rules, Club Rules & Restrictions
These encompass the norms, rules, and regulations that all buyers must adhere to for the maintenance of common areas, including any club facilities within the project.
Fit-out Rules and Guidelines
These rules and regulations specify the procedures for interior or fit out work in various units.
Deed of Conveyance
A deed of conveyance is a document through which the seller transfers ownership of the property to the buyer. It is executed after construction is complete, the completion certificate is obtained, and all terms and conditions in the sale agreements are fulfilled.
Registration Process
Registration occurs upon completion of each phase and full payment of the sale consideration, including deposits. The process is facilitated by a legal consultant appointed by the developer.
Market Value and Stamp Duty
Market value refers to the fair price declared by the government for a property in the open market on the date of execution of the instrument. Stamp duty is payable on either the agreement value or the market value, whichever is higher.
Penalty for Delays
In the event of delays beyond the grace period specified for the project’s completion, the rate of interest payable by the developer will be the same as the rate charged to buyers for delay penalties, subject to the force majeure clause.
EXTRA CHARGES
Transformer & Cabling Charges
These charges cover the expenses associated with acquiring transformers, sub-stations, electricity connections (HT/LT), and laying cables for the building complex.
Legal/Documentation and Professional Charges
These charges cover the costs incurred for preparing the Agreement for Sale, Deed of Conveyance, and/or transfer deed for the respective unit. This includes all necessary legal documents and instruments.
Municipality Deposit
This refundable deposit is obtained from buyers to facilitate the mutation of flats. If the buyer initiates the mutation process, the entire deposit is refunded. If not, municipal taxes accrued for the flat are paid from the deposit.
Sinking Fund
The sinking fund is reserved for the periodic upgrade of services and covers various costs associated with repairs and replacements of equipment and installations.
Generator Connection Charge
This charge is levied to provide power backup in individual units through generator connections.
Maintenance Charge
Maintenance charges encompass the proportionate share of expenses for maintaining all facilities and amenities, including general common elements, irrespective of their use or availability.
Club Maintenance Deposit
This deposit is collected from buyers for the maintenance and upkeep of any club facilities within the project.
Association Formation Fee
These are the costs and charges associated with forming the association for the management of the property.
Nomination/Transfer Charge
This charge is levied on any transfer, assignment, or nomination made by the purchaser of the unit before the execution of the Deed of Conveyance by the developer.
TAXATION
GST and Its Impact on Real Estate
Goods and Services Tax (GST) is an indirect tax introduced in India on July 1, 2017, replacing multiple previous taxes. Under GST, real estate projects are taxed at rates ranging from 0% to 28%. The effective GST rate on under-construction projects is typically 12% after abatement for land cost. However, GST is not applicable on units sold after obtaining a completion certificate.
Inclusion of GST in Price and Input Credit Eligibility
GST is payable in addition to the unit’s total consideration at the applicable rate notified by the government. Input credit is already factored into the base price for all buyers. Variable charges attract GST at the current rate of 18%, subject to government directives.
GST Benefit Passing on by Developers
We do not offer discounts on our projects. Our pricing is adjusted for GST and based on our product offerings. While we are partners in various projects with developers and investors, the decision to offer discounts or schemes lies with the lead developer.
Tax Deducted at Source (TDS) on Property
Buyers of immovable property worth ₹50 lakh or more are required to deduct TDS at a rate of 1% from the consideration payable to a resident transferor. The buyer is responsible for deducting and depositing the TDS amount with the government.
TAN Requirement for Buyers
Buyers are not required to obtain Tax Deduction Account Number (TAN). Instead, buyers must provide their PAN and the seller’s PAN for TDS reporting.
Due Date for TDS Payment
Payment of TDS on property transfer must be made within thirty days from the end of the month in which the deduction is made, as per CBDT notification no. 30/2016.
Importance of Seller’s PAN
The seller’s PAN is mandatory for the transaction. Buyers must obtain the seller’s PAN before completing the transaction.
Form 26QB and Form 16B
Form 26QB is used for reporting TDS on property, while Form 16B is the TDS certificate issued by the buyer to the seller.
Capital Gains Tax
Capital gains tax is levied on gains arising from the sale of property. Short-term capital gains apply if the property is held for less than three years, while long-term capital gains apply for properties held for over three years.
Exemptions on Capital Gains Tax
Exemptions on long-term capital gains are available if the proceeds are reinvested in a new property or under the Capital Gain Account Scheme (CGAS) in designated banks.
NRI
Repatriation of Profits or Capital Gains
Proceeds from property sales beyond the principal investment amount are subject to restrictions on remittance. However, profits or gains can be deposited in the NRO account and remitted outside India, up to a maximum of $1 million per financial year.
Freely Repatriable Rental Income
Rental income earned in India can be freely repatriated without requiring any specific permission.
Property Purchase and Sale Limits
There are no restrictions on the number of properties an NRI or PIO can buy or sell. However, the repatriation of sales proceeds from residential properties is limited. While the proceeds from two properties can be freely repatriated, the proceeds from the third property onwards can be deposited in an NRO account, with a total remittance limit of $1 million per financial year.
Exchange Rate Gains/Losses on Fund Transfer
Any gains or losses on fund transfers will be borne by the customers. We credit the actual received value, with any variation carried over to the next instalment due.
Housing Loans for NRIs
Certain financial institutions and authorized dealers approved by the Reserve Bank of India (RBI) can grant housing loans to NRIs for self-occupied properties, subject to specific conditions.
Mode of Payment for Property Purchase
NRIs can purchase residential properties in India using funds remitted through normal banking channels or funds held in NRE/FCNR/NRO accounts.
Required Documents for Property Purchase
For buying property in India, NRIs/PIOs need to submit PAN card, OCI/PIO card (in case of OCI/PIO), passport (for NRIs), passport-sized photographs, and address proof.
Property Purchase by Foreign Nationals
Foreign nationals of Indian origin can purchase residential properties in India for bona fide residential use. However, they cannot buy agricultural land or plantation property. Foreign nationals of non-Indian origin cannot purchase immovable property in India unless acquired through inheritance.
Definition of PIO and NRI
A Person of Indian Origin (PIO) is an individual of Indian ancestry or origin who is not a citizen of India. A Non-Resident Indian (NRI) is a citizen of India who resides abroad for six months or more for various purposes like employment, education, or residence.
LEGAL & ARCHITECTURE
Modifications and Customization
Customization and modifications during construction are not permitted in volume projects due to potential delays and impact on overall project execution. Hence, no customization is allowed in this project.
Charging on Carpet Area
Yes, we can provide rates based on carpet area upon request. While most buyers find it convenient to understand rates in Super Built-up Area (SBU), we can also mention the total consideration along with carpet area and SBU area for documentation purposes, based on your flat choice.
Transfer of Apartment and Charges
During the lock-in period, transfer of registration, application, or allotment to a third party is not permitted. Subsequently, transfer of apartment may be allowed by the company, subject to approval and payment of transfer/nomination charges as notified in the application.
Upgrades and Changes
Requests for upgrading to higher floors or bigger apartments are subject to availability and developer discretion. Any pricing differentials are payable as applicable, and customers availing home finance must consult with their banker post-approval from the developer.
Selling Apartment Before Registration
You can transfer your apartment to an intending purchaser through a nomination agreement before registration, subject to payment of nomination charges. Presence of all previous buyers for the unit is mandatory during registration and incorporation of conveyance deed.
Cancellation of Application
In case of application cancellation after agreement, the Earnest Money Deposit will be forfeited, and the balance amount will be refunded as per the timeline mentioned in the sale agreement. Any accrued interest due to payment delay will be deducted from the refund amount.
Power of Attorney for Property Registration
Yes, you can authorize someone else to register your property by granting them a Special Power of Attorney.
Agreements for Buying the Apartment
You will need to enter into an Agreement for Sale initially. Upon completion of project construction, offer of possession, and clearance of dues, registration and deed of conveyance will be executed.
Joint Ownership and Company Names
Property can be jointly owned by multiple individuals, and personal names can also be combined with company names for property purchase. Legal and financial implications should be considered to avoid disputes.
Booking Process for Apartments
Customers can book units directly with us or through our empanelled channel partners. Necessary documents and payment details are required for the application process.
Documents for Property Purchase
Essential documents to check while buying a property include the approved layout plan, ownership-related documents, approved building plan, and conducting a title and document search through a competent advocate.
MISCELLANEOUS
Overpricing Concerns
Pricing reflects various factors such as location, product quality, amenities, brand value, and commitment to delivery. We invite you to schedule an appointment with one of our sales associates who can provide detailed insights into the product and its pricing, demonstrating why it offers the best value for your investment.
Price Appreciation Speculation
As a company policy, we do not speculate on future pricing, as it is influenced by market dynamics. However, our projects have historically performed well, even during market adversities, offering investors significant appreciation on their investments.
Negotiation/Discount Availability
Our pricing is carefully calibrated based on market studies and is not subject to negotiation or discounts as per company policy.
Price Stability Assurance
While we cannot guarantee price stability due to market fluctuations, we strive to enhance the value of your investment. Historically, we have facilitated higher appreciation for our investors compared to market trends.
Price Discrepancies with Resale Apartments
Our project includes a lock-in period post signing the Agreement for Sale, which may lead to varying prices from individual sellers. However, purchasing directly from the developer offers a wider inventory selection and consistency in pricing.
Uniform Pricing Policy
Our pricing remains consistent regardless of whether the application is made directly or through channel partners. We do not endorse or promote discounts offered by agents.
Discount Decisions in Other Projects
Discounts or special schemes offered in projects involving Vinayak Realtech as a partner are determined by the lead developer. We maintain a uniform pricing policy across our projects.
Resale Assistance and Buyback Policy
While we currently do not offer resale services, we may consider introducing them in the future. We do not engage in buyback arrangements as it is not our standard practice.
Site Visit Arrangements
You are welcome to bring your family, friends, and associates to visit the project site at any time during the project’s lifecycle. Our on-site team will be delighted to host them. Additionally, we provide pick-up and drop-off assistance by appointment for visits to our experience centre at the project site.
