[Ans] The valuation process evaluates the market value of the property. Demand and supply forces operating in the market, as well as other factors like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken into consideration before the market value is decided.

[Ans] Typically, if a real estate agent is asked to judge the value of a piece of property, he would do so based on information of recent sales or purchases of similar properties in that area. Though this may give a fair idea of the property’s market value, an official property valuation would carry more weight. E.g. if you need to use this piece of property as a security against a loan, the bank’s loan approval process would be faster and smoother if the property is certified by an official valuer. Many banks now insist on valuation certificates before issuing loans using properties as security. The value thus certified may also have chances of getting a higher amount of loan sanctioned. Another benefit of official valuation is that it is a useful negotiating tool when selling the property. Such certification also becomes essential in situations where the correct value of the property has a legal bearing—such as, a will statement, insurance papers, business balance sheets etc.

[Ans] 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.

[Ans] 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.

[Ans] Legally, the actual area owned by the individual is the basis for calculation of maintenance charge.

[Ans] 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, the society has sufficient funds to carry out the work. The amount to be contributed is decided by the General Body of the society; it should be at least ¼ percent per annum of the cost of each apartment, excluding the cost of the land. 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.

[Ans] 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.

[Ans] Yes. NRIs have been legally supported to acquire and continue further dealings with any form of immovable property in India.

[Ans] Payment modes can either be foreign exchange inward remittances via normal banking channels or out of funds from NRE/FCNR accounts maintained with banks within India.

[Ans] Yes. You should file in a declaration in form IPI7 maintained with the Central Office of Reserve Bank of India, Mumbai, in not less than 90 days from the date of payment.

[Ans] Purchase formalities may be done by filing the Power of Attorney in favour of their reliable relatives residing in India at the time of purchase. This must be executed on a valid stamp paper bought in India and in the witness of proper authority .

[Ans] No. However, the income thus generated shall not be remitted outside India; instead as to be credited to the ordinary non-resident rupee account of the owner of the property in India.

[Ans] There are certain financial institutions approved by RBI providing loan facility for NRIs, though are subjected to certain conditions - the loan borrower should be in a financial standing to bear at least 25% of the total cost, paid out of inward remittance in foreign exchange through normal banking channels or out of funds held in his NRE/FCNR accounts.

[Ans] Yes. For this the employee who is designated outside India should hold a valid Indian passport.

[Ans] From nationalized banks to private housing finance institutions and banks provide home loan for a home-buyer – HDFC, ICIC bank, SBI, LIC housing finance, HSBC etc are just few among the long list.

[Ans] About 85% of the consideration value of the home you are intending to buy or build is allowed as the loan amount.

[Ans] Yes. You can pick your comfort limits; choose a time span of 15 years or your retirement age, whichever is earlier.

[Ans] Approach a financial institution for a loan application form. Adhere to the guidelines while filling in the form and do submit relevant documents with the processing fees. The bank might ask for a Co-lateral security. You will be intimated with a sanction letter, in case if your request has been approved .