How does one buy an apartment
?
i. Identify the site, negotiate and finalise the
prices.
ii. Prepare legal documents.
iii.1st registration - only on value of land.
iv. 2nd - full registration on land and building.
What are the general
period of lease ?
i. Residential - 3 years.
ii.Commercial - 6 to 9 years. (May vary from case
to case.)
What is the cost of
registration ?
The stamp value is 8% of the value of the property
and registration is 1% of the value of the property.
Who pays the registration
fee ?
The buyer.
Are lease deeds registered
?
Generally, no. The stamp deed for registration
of the lease deed is 4% of the average annual
rent and 8% of the deposit.
What can one expect
from a real estate agent ?
i. Understand your requirements.
ii. Help in identifying the premises.
iii. Help in negotiations.
iv. Coordinate / help your lawyer with the documentation.
You can expect better service from your agent
if he is kept informed of the legal developments.
What is a real estate
agent's fee ?
Varies from city to city. The Chennai Real Estate
Agents Association has fixed the fee as follows:
Rental / Lease - 1 month effective rent.
Sale / Purchase - 2% of the project value.
What are the ethics
/ norms a client should observe in dealing
with an agent ?
i. Allow only a member of the Chennai Real
Estate Agents Association (CREAA) to serve
you.
ii. If you have been informed or given inspection
of certain premises through a particular agent,
do continue to work with them.
iii. Any information passed on to you by an
agent should be treated as confidential information
and not be divulged to another agent.
iv. If there is any dispute about payment
of fees, the clients may refer the matter
to the CREAA.
What escalations can
the buyer expect in lease agreements?
Varies depending on negotiations and other commercial
factors. There could be yearly escalations or an
escalation every 3 years for commercial premises.
In case of residential premises, escalations may
be expected yearly or once every two years.
What are the other changes
besides rental fee that a tenant pays?
i. Maintenance to the association and other minor
charges.
ii. Electricity.
iii. Water charges.
iv. Minor repairs.
What are the standard
deposit norms?
i. Residential - 10 months rent.
ii. Commercial - 10 to 12 months, in some cases
even 18 months rent.
What
are the guidelines that should be followed
while taking possession of premises on lease?
i. Lease agreement should be signed.
ii. Keys must be collected.
iii. List of amenities made, verified and
signed.
iv. Electricity meter readings to be taken
and card collected.
