Lease vs. Rent
The decision to lease vs. rent really depends on what you need. If the asset is integral to your business and you need it there all the time then leasing is your best option. The security and guarantee provided by a lease is important, and it ensures your business has what it needs. For short term periods where you don’t need an asset in your business year round then renting is likely a better option. Renting may cost more over that short term period but the total cost to you will be lower since you won’t have the asset for many years.
Other areas where rentals work out are in industries that are rapidly evolving technology wise. In some industries assets become outdated within 1 or 2 years, and a lease could leave you holding outdated assets for 5 or 10 year terms. Ultimately the decision to lease or rent depends on your needs and your industry.
What is Stamp Duty and who is liable to pay the Stamp Duty, the purchaser or the Developer?
Stamp Duty is supposed to be paid every time there is a transfer of ownership. It is calculated on the basis of the total value of your property. The amount to be paid varies from city to city.
How to Buy Commercial Real Estate?
If you already understand the risks involved when you buy commercial real estate, then several important factors should be taken into account when investing either your or your company’s money into a commercial property.
The following sections cover some of the more important items to consider before you buy commercial real estate. A professional commercial real estate agent can provide you with further advice.
Those who buy commercial real estate regularly know that location is a key determinant of whether or not the purchase will ultimately turn out to be successful.
Most renters and corporate owners of commercial real estate want to be located as close as possible to their clients, employees, suppliers and vendors in order to minimize transport costs and maximize exposure to customers.
If you plan on renting to a business, make sure the commercial property is either attractive to potential renters or can be economically improved to be attractive.
Take the time to assess carefully how much repair the property requires before it can be effectively used or rented out, how much those repairs are likely to cost and how long they should take to be completed.
As with most investments, time is money in commercial real estate, and if the property will not be ready to be occupied soon for some reason, then investing in it as a rental property or as an alternative to your current commercial location could turn out to be a costly mistake.
Access and Parking Issues
You need to make sure that any commercial property you are considering buying offers easy access to customers and sufficient parking to accommodate them, as well as enough parking spaces for staff that might be employed on site.
Zoning and Improvement Limitations
Not all commercial properties are zoned for the same uses or are able to be permitted for certain improvements. You will want to check with the local planning department to find out what the zoning of the commercial property you are interested in purchasing is and what it permits.
For example, some commercial properties are located in industrial use zones, while others might be zoned for commercial office space or retailing purposes. Still other commercial properties may be located in a historical preservation area and hence substantial changes to their façade would not be permitted.
What action can I take against a builder who is delaying possession?
The first course of action should always be to issue a letter in writing to the builder stating your grievance. Ensure that all assurances by the builder of giving you possession on such and such date are given to you in writing on the letterhead and under the seal of the builder. If it appears that the builder will not be giving you possession in an acceptable time period then you may approach CREDIA for mediation.
What are the documents you need to check before buying?
– Check for proper conveyance of Title in favour of the builder.
– Check the license/development right/approvals of the builder.
– Check clear and marketable title of the project.
– Ensure execution of proper Allotment Letter/Sale Agreements on your payments.
– Ensure whether reputed financial companies approve the project. This will help you in getting financial loans.
– Check the tentative layout/building plan and verify the plinth area of the apartment. It is advisable to check the carpet area of the apartment and find out if the difference between plinth area and carpet area is reasonable.
– Ask for Occupation/Completion Certificate.
– Ensure the Conveyance Deed is registered after the entire payment has been made.
– For buying a property you need to check Deed of Conveyance, Mutation Certificate (for complete property), Land Registration Status, Sanction Plan, Search Report and Payment Schedule (for under construction). It is a must that you go through all the documents relating to the origin of the property, chain of Title, Occupancy Certificate, sanctions from various authorities dealing with building plans, fire safety and Completion Certificate.
– For re-sale property, check demand notice relating to renovation, tax dues and latest receipts of payments made towards various out-goings such as water, electricity and ground ren
What constitutes conclusion of sale of a property?
The housing society share certificate and the sale/purchase deed of the property are the main documents required to sell a residential property. If the property has been sold and bought multiple times, a copy of the previous deeds may be required to prove the authenticity of the deal. Other than these, copies of Stamp Duty and registered house documents will also be needed. In case of property being mortgaged, these papers will be held by the bank and you can use a photocopy of the required documents to initiate a deal. Depending on the kind of property and ownership, some more documents, such as a No-Objection Certificate from the housing society and a documented consent in case of jointly owned property, may be required.
While buying a house the top questions to keep in mind are:
– When to Buy?
– What to Buy?
– Where to Buy?
– How to Buy?
– How much to pay for it?
– Which locality to buy in?
– What type of property to buy?
– How to extract maximum return from your property investment?
What is meant by valuation of property?
Valuation of property simply means arriving at the actual prevailing cost of the property. It could depend upon number of parameters, location of property being the most important one. One needs to consider other parameters such as age of property, projects available, facilities offered and the sizes available in that project. The latest transaction price of a similar property needs to be considered to arrive at the closest value of the given property.
Which documents must be compulsory registered? When and where should a document be registered?
The Registration Act, 1908 came in the year 1908 and made compulsory registration of the deed. You have a property of the year 1978. Therefore, it should be registered. Since the agreement is unregistered, it is not valid and does not transfer the ownership to you. Before you make a gift deed, you need to register the sale deed in your favor as you are not the legal owner yet.