TABLE OF CONTENTS

About Real Estate ................................................................................................................................... 4 Indian Real Estate Industry ............................................................................................................................. 4 About Property ....................................................................................................................................... 5 Types of Property ............................................................................................................................................ 6 Type of Property Transactions ................................................................................................................ 7 Core Business of PropTiger ..................................................................................................................... 8 Measurement Parameters ...................................................................................................................... 9 Conversions ..................................................................................................................................................... 9 Type of Area..................................................................................................................................................... 9 Various Terms Used in Primary Sales.................................................................................................... 10 Documents required and Process of the Builder for Conceiving a New Project .................................... 15 Price List and Components ................................................................................................................... 17 Payment Schedule & Types................................................................................................................... 22 Home Loans .......................................................................................................................................... 24 Important Points relating to Home Loan .....................................................................................................24 Documents required by the bank for the Home Loan Approval of the Project........................................25 Documents required by the Buyer of the property for Home Loan Approval (Salaried) .........................26 Documents required by the Buyer of the property for Home Loan Approval (Self employed) ..............27 Documents required by the Buyer of the property for Home Loan Approval (NRIs)..............................27 Process of Sanctioning and Disbursal of Home Loans ................................................................................28 Frequently Asked Questions (FAQ) by the Buyer .................................................................................. 29 About Us ........................................................................................................................................................29 Location Related Questions..........................................................................................................................29 Project Related Questions ............................................................................................................................29 Home Loan Related Question.......................................................................................................................31 Price & Payment Related Questions ............................................................................................................31 Amenities and Specifications Related Question .........................................................................................32 Generic Questions .........................................................................................................................................33 NRI FAQs.............................................................................................................................................. 35 1

Who all can buy property in India ................................................................................................................35 How are the payments made by the NRI/PIO/OCI .....................................................................................36 Documents Required for Booking of a Property ................................................................................... 39 Resident Indian Category..............................................................................................................................39 NRI/PIO/OCI Category ................................................................................................................................... 40 Partnership Firm ............................................................................................................................................42 Private Limited & Limited Company ............................................................................................................44 Hindu Undivided Family (HUF) .....................................................................................................................45 Sales and Post Sales Process of Booking a Property.............................................................................. 47 Precautions to be taken while doing a booking ..........................................................................................49 Cancellation of Property ....................................................................................................................... 50 Buyers End .....................................................................................................................................................50 Builder End.....................................................................................................................................................51 Business Done & Collections................................................................................................................. 52 Recording of Sales ................................................................................................................................ 54 Process of Recording a Sale ..........................................................................................................................56 Key Growth Factors for an Employee.................................................................................................... 57

About Real Estate

Real Estate is a legal term that encompasses land along with improvements to the land, such as buildings, infrastructure and other improvements that are fixed in location and are immovable property which can be bought, leased, sold, or transferred together or separately. Real estate is one of the primary (and indeed one of the only) assets whose value does not depreciate over a period of time. Real estate is a broad term refers to: Residential new homes and existing (resale) homes. Commercial shopping centers and offices. Industrial and Institutional buildings. Vacant land and farms. The profession or work of an agent in the purchase and sale of Real Estate It is an attractive form of collateral because it cannot be stolen or destroyed.

Indian Real Estate Industry

The Indian real estate sector plays a significant role in the country's economy. The real estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). Almost five per cent of the country's GDP is contributed to by the housing sector. In the next five years, this contribution to the GDP is expected to rise to 6 per cent. Almost 80 per cent of real estate developed in India is residential space, the rest comprises of offices, shopping malls, hotels and hospitals. Indian real estate industry has been expanding at an exponential rate. Favorable demographics conditions, improvement in basic infrastructure, rising purchasing power, availability of cheap finance, nuclear families, professionalism in real estate and reforms initiated by the government are some of the major drivers of this spectacular growth. According to industry estimates, the real estate industry in India has been growing at 33 per cent CAGR (compound annual growth rate) and could be a $50 billion industry in the next four years. The upturn straddles all the major sectors of the industry such as commercial, residential, retail, industrial, hospitality and healthcare.

About Property
Real Estate is often considered to be a synonym of property, property from a layman definition means a piece of land; a property is any tangible or intangible possession which is owned by someone. Properties may be owned by either individuals, Companies, Housing associations or local authorities. A property can be Freehold or Lease hold. Free Hold Property: - Means a property where the owner has complete and absolute ownership of the land, and all buildings that stand on the land. The owner of the freehold property is therefore in a position to do what they wish to and with the property, in accordance with local planning regulations. The majority of property in the market is freehold, and most buyers don't even need to check. Lease Hold Property: - Means a long tenancy - the right to own, occupy and use the Property for a long period known as the 'term' of the lease. This can be for between 99 - 999 years; and the property can be bought and sold within that period. There are 'long' leases and 'short' leases, referring to the number of years left on the lease. Lal Dora Property: - The term LAL DORA was used for the first time in the year 1908. It is a name classification given to that part of the village land which is part of the village Abadi (Habitation). It was supposed to be used for non agricultural purpose only. It is that part of the land which was supposed to have been an extension of the village habitation, wherein the villagers used to have their support systems, livestock etc. Lal Dora was exempt from the building bye laws, and strict construction norms and regulations There was / is no need to apply for the building sanction plans etc. Talking about India, all the properties are free hold properties; however the properties of Noida & Greater Noida(National Capital Region) are on lease hold with the respective authorities. Though the properties in Noida and Greater Noida are on lease hold but it does not affect the ownership rights of the individual. The owner of the property has complete rights of the property and a sub lease deed is registered with the respective authorities. It is believed that both Noida & Greater Noida authorities will come up with some provision in future and will convert all the properties into freehold and will take some nominal charges for the same.

Types of Property
Property can be primarily divided into two types: Residential Property: - As a layman a residential property means a housing unit used for living purpose and is not used for carrying any kind of business operations. A residential property can be of following types: Apartments Builder Apartments Penthouses Group Housing/Society Flats Duplexs Studio Land/Builder Plots Villas/Kothis/Town Homes Independent Floors/Builder Floor Commercial Property: - As a layman Commercial Property means a property which is used for carrying any kind of business activity. The term commercial property (also called investment or income property) refers to buildings or land intended to generate a profit, either from capital gain or rental income. A commercial property can be of following types: Industrial Manufacturing Industry Service Industry Institutional Hospitals Educational Institutes Community Centers Clubs Commercial Local Retails Markets Malls Hotels Office Space/ Business Parks Shop Cum Offices(SCO) SEZ Single Product Multiple Product o IT SEZ o Export SEZ o Any Specific SEZ
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Type of Property Transactions

1. Primary Sales: - Also known as fresh bookings or original bookings means sales of the property for the first time, the entity buying the property is the first owner of the property. Direct allotment of the property through various government schemes. Purchase of property directly from the builder of the property. If you are buying a property directly for the builder such as DLF, Unitech, Emaar MGF etc you are involved in a transaction of Primary Sales. The two Parties involved will be Builder/Local authority and the individual buying the property. In case of Primary sales the real estate agent involved in the transaction charges his service fees only from the builder and not from the buyer. Thus you can pitch to the customers that we charge Zero Brokerage. 2. Secondary Sales: - Also known as Resale means sales of the property for the second time, the two parties involved will be the first owner of the property and the buyer of the property, or in other words you can say you dont become the first owner of the property. The two parties involved will be the first owner of the property & the buyer. In case of secondary sales the real estate agent involved charges his service fees both from the first owner of the property and the buyer of the property. 3. Corporate Leasing: - Means assisting various business houses or institutions in finding premises on lease/rent for carrying out their commercial activities. 4. Residential Leasing: - Means assisting various individuals & corporate in finding premises on lease/ rent for their residential use.

Core Business of PropTiger

Currently the main arm of PropTiger is Primary Sales. All the above 4 types of property transactions are closely related to each other and with a aim of becoming a complete real estate service provider Proptiger will be soon opening up their divisions for secondary sales, corporate leasing & residential leasing.

Going further this training module will be completely focused on the Primary Sales 3Bs of Primary Sales
The Business of Primary Sales revolves around the 3Bs of Real Estate BUYER means an entity that is looking to buy a property either for investment purpose, for living or a combination of both investment and living. BROKER in modern language known as Real Estate Consultant means an entity who is involved in a business of assisting buyer in the purchase of a property from the builder. In case of primary sales a broker normally doesnt charge his service fees for the buyer, broker charges the service fees from the builder, the service fees is known as Brokerage charges or commission charges. BUILDER means an entity who is involved in a business of construction of property for the purpose of selling it to the buyer. For selling a property to a buyer its is very important for a broker to understand the requirement and the budget (The cost of the property which a buyer can afford to buy) of the buyer, so that the buyer can be suggested the options accordingly. Generally the requirements of a buyer are of 3 types: Pure Investment or Appreciation. Residential Use. Investment & Residential Use.

Measurement Parameters
A property is generally measured in the following units: Square Feet (Sq. Ft.) Square Meter (Sq. Mt.) Square Yard (Sq. Yd.) Acre called Killa in Hindi Hectare Marla Kanal In North India Land is generally measured in terms of square yards or square meter and apartments/flats are generally measured in terms of square feet.

Conversions: 1 sq.mt. = 10.76 sq.ft. 1 sq.yd. = 9 sq.ft. 1 sq.mt. = 1.196 sq.yd. 1 sq.yd. = .83 sq.mt. 1 acre = 4840 sq.yd. 1 acre = 43560 sq.ft. 1 acre = 4046.85 sq.mt. 1 marla = 30 sq.yd. 20 marla = 1 kanal 1 kanal = 600 sq.yd. 8 kanal = 1 Acres 1 Hectare = 2.4711 acres

Type of Area: Carpet Area: - The actual area you use. The area on which you can put a carpet, the area of inner side of wall to wall. The carpet area is generally around 70 -75% of the Super built up area. Built up area: Over and above the carpet area and includes the space covered by the thickness of the inner and outer walls of the flat it is generally around 10% more than the carpet area. Super built up area: - The super built up area means the covered area of the demised premises inclusive of the area under the periphery walls, area under columns and walls within the demised premises, half of the area of the wall common with the other premises adjoining the demised premises, cupboards, plumbing / electric shafts of the demised premises, total area of the balconies and terraces, and proportionate share of the common areas like common lobbies, lifts, common service shafts, staircases, machine room, mumty, electric substation and other services and other common areas etc. In Northern India property is sold according to super built up area and the buyer pays on the super built up area size.

Various Terms Used in Primary Sales

Group Housing Project: - Means a project being developed by a builder with a purpose of providing mass housing. The local authorities in certain area have fixed a limit for minimum land required for making a group housing project. In a group housing a builder cannot sell independent floor or plots. Cooperative Group Housing Societies: - Means a project of mass housing developed by a company at affordable rates for his employees for eg. BHEL Society, Rail Vihar, Jal Vayu Vihar etc. A cooperative group housing society can also be developed by a group of people by getting a society registered with a common interest of building a mass housing project for their residential use and not for commercial use. Township: - Means development of big area of land normally more than 100 acres, comprising of Plots, Villas, Group housing, floors ets. It also has Schools, Hospitals & Commercial spaces all inside the area. The local authorities in certain area have fixed a limit for minimum land required for developing a township. In a township all the infrastructure development such as roads, sewage pipes, drainage, and electricity poles has to be done by the builder. Pre Launch Sales: - Also known as soft launch means sales of the project without 100% approvals for the development of the project, off late there are many builders who are promoting prelaunch sales of their project by giving the advantage of price to the buyer who are willing to buy the project without 100% approvals. As soon the project is launched either the prices are revised upwards or the apartments at good locations are already sold. Launch Sales : - Means sales of the project which has 100% approvals, normally in Northern India the sales of the project start in the pre launch phase only. Inaugural Discount: - During the prelaunch phase many builders offer inaugurals discount to the buyer to lure them to buy the property in the prelaunch phase. They also use this as a technique to create curiosity to increase the sale and also revising the prices upwards. FAR & FSI: - FAR means Floor Area Ratio and is used for commercial properties, FSI means Floor Service Index and is used for residential properties. Both of them mean the total area that can be constructed in a particular piece of land for eg. Suppose If the FSI of a property is 1.75(x) and the total land area is 10 acres then the total area that can be constructed in square feet will be: 10 acres * 43560 sq ft = 4,35,600 sq.ft.(Converting to sq.ft.) 1.75(FSI)*435600 = 7,62,300 sq.ft.(Multiplying FSI of the plot with total sq.ft. area of the plot)
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So the total area that can be constructed is 7,62,300 sq.ft. The higher the FSI the lower is the price of the property as more houses can be built on the same piece of land and vice versa. Off late government has increased the FSI for the existing land and also for the olds land, encouraging accommodation of more people and promoting budgetary housing. Land Coverage : - Means the maximum land that can be covered for construction, the smaller the size of the plot, greater is the land coverage area, the bigger the size of the plot the smaller is the land coverage area. Correlating it with the example of FSI, suppose if the maximum land coverage allowed for a plot is 40 % then the land that can be covered will be : 40% of (10 acres X 43560 sq ft) = 174240 sq.ft. Now for covering the total area available for construction the builder has to scatter the construction over 4.5 Floors (7,62,300/174240), with every floor of 174240 sqft. The government has fixed the maximum land coverage however one has to use the land coverage below the maximum limit allowed. For eg. Though the maximum limit allowed is 40% but you want to cover only 20% then the calculations will be as below: 20% of (10 acres X 43560 sq ft) = 87120 sq.ft. Now for covering the total area available for construction the builder has to scatter the construction over 9 Floors (7,62,300/87120), with every floor of 87120 sqft. However, government has fixed certain limit to the building height, so one has do proper permutations and combinations to ensure a right combination of Land Coverage and FSI. Density: - refers to the population that is allowed in one acres of land, talking about Gurgaon the current density allowed is around 250 PPA (Person Per Acre) and in Noida & Greater Noida the current density which is allowed is around 600 PPA (Person Per Acre). In Gurgaon the average size of the entire apartment made in the complex should be around 1900 sq.ft. and in Noida the average size is around 1200 sqft. Atrium: - A sky lighted central area, often containing plants, in some modern buildings especially for public, in properties of commercial nature. Podium: - A podium is a platform that is used to raise something to a short distance above its surroundings, for instance the conductor of an orchestra stands on a podium. Mezzanine Floor: - means an intermediate floor between two floors above ground level is accessible only from the lower floor.
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Floor Plan: - Means the layout of how the apartment will look like and the size of the unit/apartment, it shows how the layout of the different rooms will be, their sizes and connectivity. A particular floor plan also mentions that a particular size is available in which particular block of a building. Cluster Plan: - Also known as tower layout, it is the layout of the entire building; it shows the layout of all the apartments on the floor and number of apartment on the floor, the locations of the stair case, lobby, lifts etc. It also helps in analyzing the distance between the apartments and the merging of the different sizes. Site plan: - Means the layout of all the buildings in the complex. It help is analyzing: Direction of the apartment & green area in the project, the directions of north, south, east and west are marked in the site plan, you can easily figure out facing of a unit/apartment through the site plan. Sun rises from east & sets in the west, while moving from east to west sun moves through the orbit of south. For some people the criteria of the direction is related to the facing of the main entry of the unit/apartment, however in major cases criteria of direction in the facing of the frontage of the unit/apartment. Combinations of the different sizes in towers, sometime different sizes are marked in different colors or different sizes are mentioned for various blocks on the top of the block. Number of Unit/apartments on the floor and numbering plan of the same. Location of Club house & other amenities in the complex Distance between two buildings and feasibility of joining two apartments together. Location of Parking, Parks, kids play area etc. Entry & exit of the entire complex Gated Community: - In its modern form, a gated community is a form of residential community or housing estate; containing strictly-controlled entrances for pedestrians, bicycles, and automobiles, and often characterized by a closed perimeter of walls and fences. Building Height: - means the numbers of floors that can be built in the building, normally it is mentioned as G + 7 which means ground floor and seven more floors. Sometimes it is also mentioned as S + 10 which mean that building doesnt have a ground floor, ground floor has a parking which is known as Stilt (S) and the building has 10 more floors. Escalation Charges : - When a builder fix the price of the property it takes into consideration the economic inflation which might affect his costing as the construction of the project is scattered over a period of 2-3 years. There can be huge escalations in the costing of the builders because of economic changes which may lead to an increase in cost of labor & raw material. Builders normally keep the prices escalation free. Sometime these charges are escalations free to a

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particular level of inflation and if the inflation rises more than the defined limit then the builder increases the rates of the property accordingly. Earnest Money: -Means the amount of booking paid along with the booking application, it is normally around 10% of the Basic Sale Price. Capital Gain Tax: - is paid to the government for the profits made from the sale of a property, it is of two types: Short Term Capital Gain Tax: - when a property bought in sold within three financials years of the purchase then the profit made on it is taxed at 30%. Long Term Capital Gain Tax: - when a property bought in sold after three financials years of the purchase then the profit made on it is taxed at 20%. The rate at which the tax is charged keeps on changing according to the government policy. An entity can avoid this tax if the sales proceed of the transaction are reinvested in a property within one financial year of the sale of the property. A sale proceed of a residential property cannot be invested in a commercial property. To keep the money safe, banks open special accounts for this purpose in which the sale proceeds of the property can be kept. For avoiding the Capital Gain tax some of the buyers take the profit of the transaction in form of cash thus creating an involvement of black money. The policies of government for capital gain keeps on changing from time to time so its important to be updated on the same. Power of Attorney (POA): - Is a legal document which allows transferring the rights of doing signatures to someone else for a specific purpose on legal documents. A power of attorney is only valid if it is registered. In case of NRIs a power of attorney can be registered at the local Indian embassy office. Property can also be sold on power of attorney instead of getting it registered. They are many cooperative group housing societies and builders floors in which registration is not allowed, in these cases the property is sold on Power of Attorney, there might be situation where registration is closed for a particular period in this case also property is sold on power of attorney. Sometimes some buyers want to avoid registration charges and take a power of attorney from the seller which entitles them complete ownership of the property. Buying a property on power of attorney as it is not 100% safe, also home loan cannot be availed by the buyer if the property is bought on POA. Payments Receipts: - these receipts are issued by the builder to the buyer confirming the amount that he has received against the booking. Allotment Letter: - it is a document issued by the builder to the buyer of the property mentioning the number of the unit or apartment being allotted to the buyer and details of how the payments have to be made.
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Builder Buyer Agreement: - it is the most important document in case of primary bookings, its the agreement that contains all the terms and conditions of the purchase of the property, the total prices of the property and the payment schedule. It is signed by both the buyer and the builder. There are two copies of the same in original; one is retained by builder and the other by the buyer. EWS: - means Economic Weaker Section, the government has made mandatory in some group housing projects and Townships to build houses particularly for selling it to individuals belonging to Economically Weaker Sections of the society. Property Tax : - Taxes are paid to the government according to the rules and regulations. As of Property tax is not applicable in Noida, Greater Noida, Gurgaon & Faridabad, its only applicable in Delhi.

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Documents required and Process of the Builder for Conceiving a New Project
The documents and process to be followed by the builder for bringing a new project varies from city to city. Below are the details of the documents required and process to be followed: Gurgaon & Faridabad The Haryana government in the master plan of 2021 has mentioned the land use of various sectors in Gurgaon and their location, currently most of the land in the developing sectors are used by the villagers for farming purposes, the builders in Gurgaon follow the below process: Identification of the land which builders want to buy. Finding the legalities of the ownership of the land with the help of Patwaris and ensuring that the land is free from all encumbrances. Once the builder is satisfied with this, he then buys the land from the villagers. A builder then gets the land registered in his name. As the property is used for agriculture, the builder needs to get the CLU (Change in Land Use) done according to the purpose he has bought the property i.e. Residential/ Commercial, the CLU will be in accordance to the master plan. The builder then files a LOI (Letter of Intent) with the respective authority. Once the LOI is given by the authority then the builder is required to deposit a License Fee along with the charges of EDC & IDC to the authority in a prescribed period. Once all the money is deposited with the authority then a license is issued to the builder. Approvals of Building layout from respective authority. Approval of the building structure from the geological department. Approvals of floor plans from respective authority. Approvals from Fire Department. Approvals from Environmental department. Approvals from the Drainage & Electricity department. Approvals for height from Aviation department. Approval from the Water department. Once the builder gets all the approvals from the respective authorities only then he can start the construction of the project, though the builders start the pre-launch sales of the property once they get the LOI approved from the authority. Noida & Greater Noida: - The process of starting a new project in Noida & Greater by a builder is comparatively much easier and quicker. Below are the details of the documents required and process to be followed: -

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The respective authority acquires land from the villagers according to the master plan and takes the possession of the land. Tenders are floated in the market for purchasing land from the authority. Interested builders apply for the tender and the builder who pays the maximum gets the ownership of the land. Builder pays the earnest money of the property and gets an allotment letter. Builder pays the remaining amount of the property according to the payment plan prescribed and gets the land registered in his name. Approvals of Building layout from respective authority. Approval of the building structure from the geological department. Approvals of floor plans from respective authority. Approvals from Fire Department. Approvals from Environmental department. Approvals from the Drainage & Electricity department. Approvals for height from Aviation department. Approval from the Water department. Once the builder gets all the approvals from the respective authorities only then he can start the construction of the project, though the builders start the pre-launch sales of the property once he receives the allotment letter.

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Price List and Components

Price List is provided by the builders of the property giving the breakup of how the total cost of the property will be calculated and the rates for other charges. In Modern era builder advertise the property without the inclusions of other charges hence making the price look attractive. The different factors in price list are: Basic Sale Price : - Also known as BSP it means the cost of the property without any kind of extra charges. EDC & IDC: - External Development Charges & Infrastructures Development Charges are basically charged by the government for the overall development of the area such as roads, parks, drainage systems, sewage, electricity wiring etc. It is charged by the builder of the property to buyer and the same is been deposited with the government. The builders charges the EDC & IDC at the current rates, however in case of any further revision of the charges by the government the builder has the right to ask for the revised charges from the buyer. EDC & IDC are charged in all the projects in India apart from Noida & Greater Noida, however in Jaypees project in Noida and Greater Noida EDC & IDC is charged. EDC & IDC are mandatory charges. Lease Rent: - Lease rent is charged in Noida & Greater Noida only. As all the properties are on lease hold with the authority, these charges are collected by the builder form the buyer and deposited with the authority. Normally the lease rent is paid for a period of 99 years and it is believed the authority will come up with some provision in future and will take nominal charges and will convert the lease hold into freehold property. Lease rent is a mandatory charge. PLC: - All the apartments in the complex dont enjoy a premium location, some apartments are better than others, so to differentiate between an apartment at a good location and bad location the builder charges Preferred Location Charges(PLC). PLC is not mandatory, there can be different types of PLC: Floor PLC: -Builder charges extra payment for apartment on lower Floor. This is a concept being followed in Northern India, in rest of India PLCs are charged for higher floors. Landscape/ Garden PLC Corner PLC Road Facing PLC Club House Facing PLC Pent House PLC Top Floor PLC Any Specific Unique PLC Golf Course Facing PLC

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Power Backup Charges: - are mandatory charges, builder provides 2 types of power backup: 100% Power Backup: - means you can use all you appliances in case of a power failure Specific Power Backup: - means a builder provides you with a connection with the upper limit defined for eg, 2 KVA or 5 KVA thus restricting the use of the electricity. In both the cases a separate electricity meter is installed, and the buyer has to pay according to the actual consumption of the electricity, normally the charges for the same is around Rs. 10/per unit consumed. A builder normally provides 100% power back in case of luxury apartment and specific power backup in case of affordable apartment. EEC: -Electric connection charges are being charged for the laying of the electricity wires and points. EEC is mandatory charges FFC: - Fire Fighting charges are being charged for the installation of fire fighting equipments. FFC is mandatory charges Car Parking Charges : - builders charges separately for the car parking, there are different types of car parking charges, buying a car parking in mandatory in most of the projects, in luxurious projects the numbers of mandatory car parking depends on the type of accommodation and the size of the apartment. Normally in case of a villas or independent floor charges for car parking is included in the prices. Covered Car Parking: - means car parking in the basement area. Open Car Parking: - means car parking on the ground surface. Stilt Car Parking: - its a kind of covered car parking provision on the ground floor, since the ground floor of the building doesnt have apartments. Back to Back Parking: - a provision of back to back parking is also provided in some project in which the length of the parking area is increased thus allowing 2 cars to park in the same, it is a cost effective car parking if you compare it to buying of two car parkings but it also gives you trouble if you want to take the car out from parking which is behind. Club Charges : - also known as CMRC i.e. Club Membership Registration Charges, these are one time charges for the club membership. Club Charges may be mandatory or non mandatory varying from project to project. In case of some good club houses an annual fees is also payable. The club membership cannot be sold. Centralized Communication Charges: - Sometimes some builders charges these for EPABX System, phone lines etc.

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IFMS: - Interest Free Maintenance Security Deposit is a fund maintained for major maintenance of the project in the future. Its a onetime mandatory charge to be paid. The money collected from this is deposited in a bank account but the residents of the complex dont get the interest generated on this. Major maintenance for example includes - failure of power backup generator, any major repairs to be carried in the building complex or faade of the building. IBMS: - Interest Bearing Maintenance Security Deposit is used for the same purpose as IFMS, its also a mandatory charge, the only difference is, in case of IBMS the resident get the benefit of the interest on money deposited in the bank. Monthly Maintenance Charges: - These are charges paid by the residents once the possession of the property is given; its a mandatory charge and is paid on monthly basis. The funds collected from this are used for regular maintenance of the complex such as salary of the guards, electrician, plumbers, gardener or any other recurring maintenance activity. The charges for the same for an affordable project are around Rs. 1.25/- to Rs. 1.75/- per sq. ft. and in case of luxury project it may vary from Rs 3/- to Rs. 5/- per sq.ft. Builder takes these charges in advance normally for 1 to 3 years, as once the possession of the property is given the entire complex is not habited and it becomes a problem to collect the money from the people who have not shifted (In some cases buyers of the property dont want to shift as they are NRIs or investors). In order to ensure regular and a good maintenance of the entire complex without 100% occupancy builders takes these charges in advance. The complex once developed in maintained by the builder for first 1 to 2 years through a property management company, after the completion of the tenure the builder hand over the maintenance of the project to the RWA (Resident Welfare Association) and also hand over all the funds of IFMS/IBMS and Monthly Maintenance, after the handover RWA takes the call as how they want to go about the maintenance of the complex. Miscellaneous Charges: - Value addition charges such as Piped Gas Supply etc. Terrace Charges /Lawn Charges: - Special apartment by the builder having Lawn and Terraces, normally these charges are 50% of the Basic Sale Price. Late payment Charges: - If the buyer of the apartment does any delay in the payment of the amount of instalment demanded by the builder, then the builder charges an interest on the unpaid amount which is normally a simple interest of 18%. P.a. Penalty Charges for delay in Possession: - If the builder of the property does not give possession of the property in the committed period, then he pays a penalty to the buyer of the property, normally these penalty charges are around Rs 5/- to Rs. 10/- per sq. ft. per month. Off late some builders have introduced escalating penalty charges i.e. the amount keeps on increasing as the delay keeps on increasing. The same rules apply if the buyer of the property

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doesnt take the possession of the property from the builder when the property is ready for registration. In this case the builder has also the right for cancelling the property of the buyer. Transfer Charges : - These charges are taken from the builder if the buyer of the property wants to sell his property to someone else before possession, also known as administrative charges, it varies from property to property normally it is around Rs. 50/- to Rs. 100/- per sq. ft. For promoting investors sometime some builders keeps first one to two transfers free of cost on the other hand some builders dont allow the transfer of the property till 30 % to 40% of the cost of the property is not received or in some cases they dont allow the transfer of the property for a particular period for eg. Transfer is not allowed till one year. Interest on Advance Payment: - Some builders especially DLF give simple Interest to its buyers if they make an advance payment of the instalment. Normally it is around 13% P.a. on the excess money paid. Timely Payment Rebate : - Also known as TPR, it was introduced during the recession phase of 2008-2009, the main purpose of TPR is to ensure that the buyer of the property pays all his instalments on time. TPR is basically given in two ways Either on every instalment i.e. TPR is given on every instalment if the instalment is paid on time. The advantage here is that the buyer is not penalized if he is not able to pay all the instalments on time, he will get TPR on the instalment which he pays on time. Discount on last instalment i.e. the entire TPR will be adjusted in the last instalment if all the instalment are paid on time to the builder. Here if the buyer misses to pay any instalment on time, the entire TPR is withdrawn. The TPR is normally around 5 to 10% of the cost of the property. Basement Storage Charge: - Its an optional charge for a storage space in basement it is approximately Rs.2000/sq.ft. Stamp Duty & Registration Charges: - these are the charges payable by the buyer to the government for taking the possession of the property; different cities have different registration charges. The government keeps on changing these charges from time to time. The charges applicable at the time of registration are to be borne by the buyer. The current charges for some of the cities are below (24/05/2009): Gurgaon & Faridabad: 7% of the cost of the property in case of male applicant. 6% of the cost of the property in case of joint applicant (male & female). 5% of the cost of the property in case of female applicant.

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Noida & Greater Noida: 5% of the cost of the property irrespective of the gender of the applicant. Ghaziabad: 7% of the cost of the property in case of male applicant. 5% of the cost of the property in case of female applicant. However in many areas the government has fixed a ceiling on the cost of the property for females for availing the discount benefit on registration it is around Rs. 10 lacs i.e. if a female buys a property which costs more than Rs. 10 Lacs then even she has to pay the top slab of registration fee.

Documents required for registration: Sale Deed on Stamp Papers of the required amount. Two passport size photographs of each Buyer. All the original documents of the property issued by the builder. ID & ADDRESS Proof of each allottee(s) to be produced in original (at the time of registration) with photocopy i.e., Passport/Voter ID Card/Driving License/PAN Card. In case of Allottee(s) being represented through Attorney: Duly Stamped & Registered Special Power of Attorney. Registration Fee: Rs15, 000/-payable in cash at the time of registration. Other Incidental Expenses: Rs.12, 000/- payable in cash at the time of registration. NOC (No Objection Certificate) from the Maintenance Agency.

Circle Rates : - these are the minimum rates at which the registration of the property is done for a particular area; the government has fixed the circle rates for particular localities within the city, the higher the circle rates the less is the combinations of black & white money. The actual rates at which the property is sold (Barring big builder properties) is normally much higher than the circle rates which leads to the involvement of black money, with the government changing policies it is expected the that the actual rates at which the property is sold with match the circle rates in 10 -15 years which will lead to no black transactions in future.

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Payment Schedule & Types

Payment schedule is provided by the builder, mentioning details of how the buyer needs to pay for the property and at what stages the other charges are payable by the buyer. The different types of payment schedule are: Time Link Payment Plan (TLP): - This is a payment plan which is normally scattered over a period of 3 years. The buyer of the property needs to pay for the property according to the schedule provided by the builder, the buyer of the property has to pay irrespective of the fact that the construction of the property is happening or not. During the recession of 2008 2009 most of the builders withdrew this payment plan as banks stopped the funding of the project which was having this kind of payment plan. It is a risky payment plan for the buyer but a very convenient plan for the builders as he is getting his payment from the buyers of the property irrespective of the construction of the project. Construction link Payment Plan (CLP): - This payment plan is also normally scattered over a period of 3 years but as this is linked with construction it stretches till the time the construction of the property is not completed. The buyer of the property has to pay in accordance with the construction of the property, however the first 20% -30% payment in most of the project is time linked which is an industry standard, this is the most used payment plan by the buyer as it involves least risk since buyer doesnt need to pay if the construction is not happening. This payment plan also forces the builder to speed up construction as he cannot demand any money from the buyer till the time committed construction stage of the project has not reached. Down Payment Plan (DP): - In this payment plan 95% of the cost of the property is paid within 30 to 45 days of the booking in the project and the remaining 5% is paid at the time of possession. For encouraging this payment plan all the builders give handsome down payment rebates varying from 7% to 15%. The percentage of rebate depends upon the construction status of the project and the financial requirement of the builder. It is the most risky payment plan as 95% of the cost of the property reaches the builder without any kind of construction. During the recession of 2008 2009 most of the builder withdrew this payment plan as funding was completely stopped by the bank for this kind of payment plan. There are many projects in which banks only fund in CLP case and not in DP case till the construction has not reached a particular stage. Flexi Payment Plan: - This is a payment plan which is between CLP & DP, normally this payment plan is scattered over a period of 3 years but as this also linked with construction so it stretches till the time the construction of the property is not completed. In this payment plan around 40% of the cost of the property is paid within 30 to 45 days of the booking of the property and the remaining 60% is scattered according to construction. For encouraging this builders give attractive flexi payment rebate varying from 3.5 % to 7.5%. This payment plan has higher risk then CLP but less risk then DP.

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Subvention Payment Plan: - Subvention means financial support; this is the safest payment plan as it involves three parties Buyer, Builder and Bank, the bank only gets involved if the project is 100% safe, it is also popularly known as No EMI Plan. This payment plan normally comes with a No EMI till particular date or till possession. How this works: 15% of the cost of the property is contributed from the buyer at the time of booking. Bank contributes 80% of the cost of the property for which No EMI/Interest is paid by the buyer for the period committed in the scheme; the EMI/interest accrued on this is paid to the bank by the builder. 5% of the cost of the property is contributed from the buyer at the time of booking and his EMI for the complete loan starts. For a buyer to be eligible for the scheme he needs to take a home loan, though during the period of the scheme buyer doesnt need to pay anything to the bank as an EMI or Interest. This is the safest payment plan as the bank only gets involved if the project is 100% safe. Builders normally uses this payment plan as a sales technique, also some builder charges different property rates if the buyer wants to opt for this payment plan, kindly note that the buyer though needs only 15% of the cost of the property for booking under this scheme but taking a home loan is mandatory for this payment plan and buyer should be eligible for the amount of home loan required against the property. Assured Return Payment Plan: - This payment plan is more of a sales technique used by the builder to increase sales or sometimes when the builder is in financial crisis and needs urgent money. It is on the lines of the down payment plan, 95% of the payment has be made within 30-45 days of the booking of the property, but the builder doesnt provide any type of down payment rebate and the price of the property is according to CLP plan, instead of down payment rebate the builder gives assured return to the buyer for a particular period normally it is around 2 years. For example, if the cost of the property is 10 lacs and the assured return is 12% P.a. (for two years) i.e. 1% per month then the buyer of the property will get Rs. 10,000/per month for two years. This payment plan gives more of a financial freedom to the buyer doesnt rather than any financial benefits, as down payment rebates is more or less equals to assured return. As far as bank approvals for home loan is concerned first the CLP plan is approved, then the TLP & Flexi and then DP is approved. Subvention payment plan in any case is linked with the bank and assured return payment plan is normally without a home loan. There can be some projects which are only approved in CLP from the bank.

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Home Loans
Home Loans or funding in the project to the buyer is one of the most important factors for the sales of the property. 95% of the properties are bought on home loans, with the increase of all white transactions in Indian market some of the buyers are forced to take home loan as they dont have sufficient white money to pay to the builder. Normally the Loans provided in case of a residential property is maximum up to 90% of the property value and is case of commercial property it is around 60% of the property value. NRIs are not eligible for commercial loans. The banks never finance 100% of the property value as they want to keep margin money as a security in case there is a default from the buyer of the property or if the market crashes and the existing vale of the property goes down.

Important Points relating to Home Loan

Home loans are given for a minimum period of 1 year and maximum period of 25 years; the tenure of loan depends upon the age of the individual. The maximum age for taking a loan is 65 years i.e. if someone is 55 years old then he or she can take a loan with tenure of maximum 10 years. If somebody wants to increase the tenure he has to make a co-applicant (Family member) with a younger age. Co-applicants can be only in blood relation, the idea is clubbing the income of the applicant and co-applicant so as to facilitate them to get a higher loan amount, However, combinations of father daughter & brother sister are not allowed but combination of husband & wife is allowed. The maximum loan one can take is, for salaried employees 5 times of their annual package and for self-employed 5 times of the income tax return filed. If there are any existing loans running for a buyer then the eligibility for the home loan reduces. In a more simpler language for calculating the eligibility the bank assumes that buyer needs 50% of your monthly earning as regular expenses and the reaming 50% can be spent as an EMI for example if your monthly earning is Rs. 50,000 then the bank assumes that you require Rs.25,000 for your regular expenses and the reaming Rs.25,000 you can afford to give as a EMI, so the bank will give you loan of a amount and tenure in which the monthly EMI doesnt exceeds Rs.25,000/-, suppose if you a personal loan for which you may an EMI of Rs. 5000/- then the bank will do the calculation according to Rs. 20,000. A buyer can avail only three home loans at one time. Rate of Interest on home loans depend on repo rate, reverse repo rate & CRR (Cash Reserve Ratio), all the three are governed by RBI, changes in any of the three leads to the change in PLR (Prime Lending Rate) which leads to the change in rate of interest. PLR is normally reset in every three months. Rate of interest are of three types Fixed rate of Interest - which means that the rate of interest is fixed for entire tenure and is not affected by the change in PLR.
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Floating Rate of Interest which means the rates of interest varies with the market condition and changes with the change in PLR. FixOfloty Rate of Interest: - which means that the rate of interest is fixed initially for the first 2 to 3 years and then gets converted to floating rate of interest. Prepayment Penalty: - if someone wants to pay the loan before the tenure for which the loan was taken then it is called as prepayment of loan, different banks have different rules for handling this, nationalized banks normally dont charge any prepayment penalty. Private Banks normally charges prepayment penalty of 2% on the outstanding principal. Some private banks dont charge any prepayment penalty if the prepayment is done from own sources i.e. the property is not sold or its not been mortgaged with some other bank. However one needs to check prevailing offer from various banks before committing anything to the buyer. The Interest paid on home loan is eligible for an exemption for income tax purpose, the maximum exemption allowed in a financial year is 150,000/-, however no exemption is allowed to the person in case of a under construction property. The buyer can claim the exemption after the completion of the property equally in the next 5 years after completion. For example the possession of the property happens in 3 years and you took the loan in 1st year and paid interest of 25,000 in the first year, 35000 in the second year and 40,000 in the third year, the total interest paid by you in three years before completion will be 100,000. Now you can claim it equally in the next five years i.e. 20,000 each, in the fourth year if you pay an interest of 60,000 then you can claim an exemption of 80,000 (60,000+20000), the maximum exemption cannot exceed Rs.150,000 in a financial year. NRIs dont get any income tax benefit for the interest paid on home loan. NRIs, PIO, OCI living in some particular countries are barred from taking home loan for example NRI/PIO/OCI of Pakistan, Bhutan, Bangladesh, Afghanistan, Sri Lanka etc. are barred from home loans in India. Self-employed NRIs dont get home loans for buying Indian Property. Funding of a project from nationalized banks normally starts at the advanced stage of the project.

Documents required by the bank for the Home Loan Approval of the Project
Allotment letter Possession Letter/Possession Certificate Conveyance Deed Sale Deed Lease Deed Transfer Deed General Power of Attorney Collaboration Agreement/Development Agreement/Joint Venture Agreement Title search report (latest)
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Non-Encumbrance Certificate (latest) Approved Lay-out Plan Approved Floor Plans Payment schedule along with Cost of Units/Rate List/Brochure Mortgage Permission (if lease hold property) Bank Account number of the Builder on its letterhead. Name of authorized signatories of the Builder with Telephone Nos. and specimen signatures duly attested by the Builders bankers. Copy of Resolution authorizing the signatories to act on behalf of the Builder. Company Profile (in case of new builders) Verification of Originals of all copies of documents submitted by the Builder. Tower wise list of the flats Draft of the documents in favor of the customer. [Builders letter head] 1. Name of managing committee members with specimen signatures S No 1 2 3 Name Signature

2. All disbursement cheques will be drawn in favor of ___________________________, Bank Account no_____________________ payable at (with address)_____________________________________. 3. Copies of specimen documents executed with the allottees i.e flat buyers agreement etc.

Documents required by the Buyer of the property for Home Loan Approval (Salaried)
Photo ID Proof (PAN Card / Passport /Driving license) Address proof (Copy of Passport / Consumer/Utility Bill / Employer Letter.) Appointment letter Or Current CTC breakup. Latest 4 Months Salary Slip. Latest Income Tax Return. Latest Form 16. Updated 6-Months Bank statement (Salary account and all other accounts) One passport Size Photograph signed across of each applicant. One Cheque for processing fees Loan Sanction Letter (if any Loan)
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Chain of property document. Investment proof (photocopy)

Documents required by the Buyer of the property for Home Loan Approval (Self employed)
Photo ID Proof / DOB Proof (PAN Card / Passport /Driving License) Residence Proof (Passport/Driving license/Any Valid Consumer Bill) Office Address Proof (Rent or Lease Agreement / Any Consumer Bill) Up-to-date 6-Months Saving A/c. Bank statement (Individual) Up-to-date Latest 6-Months All Current A/c. Bank Statement company (All Bank a/c's) Obligation Details (if any / OD or CC Limits with Section Letter) Last 3-Yrs ITR with computation of income, P&L a/c & Balance sheet (with all annexure & schedules) of all applicants & company. Provisional ITR of the company & copy of advance tax challans (if any) Last 3-Yrs audit report of the Firm/Company. Detailed Firm/Company Profile. MOA/AOA of Company (Pvt. Ltd. Firm) Partnership Deed (Partnership Firm) Latest Share Holding Patterns By CA. (Pvt. Ltd. Firm) List of assets & Investments. Loan Track Record (if any Loan) Processing fee Cheque of (0.5%+ service tax).

Documents required by the Buyer of the property for Home Loan Approval (NRIs)
Only NRI(Non Resident Indian), PIO(Person of Indian origin) and OCI(Overseas Citizen of India) can take home loan in India Employment Contract Latest work permit Visa stamped on passport Salary slip for past 6 months Overseas Bank Statement for past 6 months NRE/NRO Bank Statement for past 6 months ID Card by employer Official Email Id Credit Bureau Report Company Profile Continuous Discharge Certificate(in Merchant Navy cases) Power of Attorney as per Banks format, its mandatory for a NRIs to give his Power of Attorney to any of its family member or friends for availing a home loan.
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Process of Sanctioning and Disbursal of Home Loans: Sanctioning of Loan: - A buyer depending upon his classification i.e. salaried, selfemployed, NRI needs to deposit all the documents required with the respective bank from which he needs to take the loan. Bank does its legal formalities and takes around 7-10 working days for the sanctioning of the loan if the buyer is found eligible, if the loan is not sanctioned then all the documents are returned to the buyer. Disbursement of Loan: - Bank normally takes around 7-10 working days for the disbursal of the loan once it is sanctioned. The following documents are required by the bank for disbursing the loan: Original documents of the property Builder Buyer Agreement, Allotment Letter & original payment receipts. Lien mark Letter: - It is a request letter by the buyer of the property to the builder of the property allowing taking a loan. Permission to Mortgage: - This document is required by the bank from the builder that the builder has no objection in allowing the buyer to take a loan on the said property. No Objection Certificate (NOC): - In many cases a builder takes a loan for a bank for the complete project i.e. the entire project is mortgaged with some bank by the builder. In this case if a buyer wants a loan then a NOC is required from the first bank by the second bank. Indemnity Bond: - This is normally required by the bank in case of down payment cases, it says that the bank will not be responsible if something goes wrong with the project in future for example if the project is scrapped then the bank has full right to recover the loan from the buyer of the property. Tripartite Agreement: - Its an agreement made between the builder, bank & the buyer mentioning the terms and condition of the purchase.

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Frequently Asked Questions (FAQ) by the Buyer

About Us
You are from which company? You need to tell the buyer that you are from PropTiger.com which is one of the most professional companies in the real estate brokerage business and is headed by the post graduates from top business schools. Why should I choose you? You need to explain the buyer that property transactions are very sensitive and you need to be very careful from whom you are buying the property, since there are lots of frauds happening. Whats your Interest in helping me buying the property? We get a brokerage from the builder for selling his property and we dont charge anything from the buyer. Why I should not go and buy the property directly from builder? There is no difference in prices of the property if you go to the builder directly or buy the property through us since we provide you with entire services without any charges. If we provide any discount to the customer from our brokerage in that case we can even offer better prices to the buyer then the builder. Do you assist in renting & resale also if yes what are your charges? - Yes we assist in renting and resale of the property, we have a separate division for the same. In case of resale we charge 2% of the property value from both the buyer and the seller and One month rent of the property from the tenant and the landlord in case of renting.

Location Related Questions

Distance of the property from any major landmark location:- for example Connaught Place, India Gate or any other local prominent place Any property you sell you should be aware of the distances from the major landmarks. Distance of the property from Airport, Railway Station, Metro Station, and Bus Stand Etc. - Every property you sell you should be aware of the distances from Airport, Railway Station, Metro Station, and Bus Stand. Distance of the property from Malls or any local market in the vicinity of the property Every property you sell you should be aware of closet local markets and malls. Schools & Hospitals in the vicinity of the property - Every property you sell you should be aware of the hospitals and schools nearby.

Project Related Questions

Name of the project and the builder You should remember the project name and builder names of all the projects no matter we are selling the project or not. How is the reputation of the builder You can always tell the buyer that we dont sell every project, we have a team who does the entire verification of the project and if they find the project feasible only then we sell the project. Also as we dont charge anything from you and our earning comes from the builder so we are very selective with the
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project as if something goes wrong with the project or builder we are also in big trouble and all our efforts goes in waste. Which all propjets are delivered by the builder you should be aware of all the past projects and upcoming project of the builder. Type of project i.e. Township, Group Housing, builder Floors etc. What is the current availability of Unit/Apartment This question needs to be answered very tactfully according to the buying stage of the buyer or the flow of the sales in the project. Is the property Freehold or Lease Hold. What are the sizes of Flats and Villas Etc. Full form of different abbreviation: - BHK (Bedroom Hall Kitchen), SR (Servant Room or Store Room), ST (Servant Room), WR (Workers Room). What is a powder Room: - Powder room is a bathroom which is normally for guest or a common toilet in an apartment. Is there any sample apartment of the property? Super Built area to Carpet area loading Already explained in the area definition. Sizes of the different rooms. Can modifications of the floor plans can be done Modification is possible only after possession and it should not affect the structure of the building, though changing the floor plans is illegal. What is the stage of the project Launch/ Prelaunch and are all the government approvals are there in place You should have complete awareness of the project. When will be the possession of the project & has the construction started Normally a project is delivered in 36 -40 months from start of construction. Total area of the project in acres and the percentage of open/green area. Can the property can be taken on multiple names. Can buyer see the legal documents of the property. What will happen if the project gets delayed Late payment charges are paid by the builders, the same has been explained in the price list. Total number of units in the project (Apartments, Villas, Pent Houses), apartments per floor and total number of floors. Response of the market towards the project and what is the percentage of the project sold out or No. of apartments sold out. Different projects in the surrounding and the rates for the same and which one to buy You should be aware of all the projects in the market and there prevailing rates. Never do a negative pitching of the project that we are not selling. What is the expected Rental Value Normally in Noida & Greater Noida the rental value of the property is around 2% to2.5% p.a. of the property value and in gurgaon it is around 3.5% to 4% of the property value. The Rental yield is more in gurgaon because of more job opportunities in gurgaon and presence of many MNCs. When I can sell the property and what will be the transfer charges Already explained in the definition of Transfer charges in price list. What is the direction of the apartment this need to be answered very tactfully.

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Who will pay the transfer charges Normally the transfer charges are paid by the seller of the property, however in majority case it is borne as mutually agreed in the deal. What are the special features of the project & what is the future of the location. Who is the architect of the Project You should always remember the name of the architect of the project. What is the expected rate of appreciation You can always tell the buyer that appreciation depends on the market conditions; on a normal scenario you can expect an appreciation of 20% to 25% on a yearly basis.

Home Loan Related Question

Is the project approved by the bank for funding Normally it takes around 4-6 months for a new project to get approved for home loan from banks. In a case if a buyer want to make the further payments through home loan and project is not approved by the bank then builders normally dont ask for further payment till the time project is not approved by the bank, in case the builder demand the payment then they also provide a facility to the buyer to give them a request letter saying that he wants to make the further payments through home loans no interest on late payment should be charged from him for delayed payment as it is not his fault. A copy of Home Loan sanction approval of the buyer is required by the builder from the buyer in these cases. Which banks are giving home loans on the project You should be aware of the names of the bank that are funding the project and those who will be funding soon. Home Loans rate of Interest, prepayment penalty, documents required all explained in the home loan section. Loan eligibility and the tenure of loan that can be availed all explained in the home loan section. Can I pay the booking amount through home loan At least 10% to 20%(Depends on the prevailing conditions) of the initial payment has to contribute by the builder and on remaining he can take a home loan. If somebody doesnt have money for the initial contribution that you can suggest him to take a personal loan for the same, however, dont encourage the same as taking a personal loan will affect the home loan eligibility. How can an NRI take home loan for a property in India A NRI can take a loan without coming to India; all the formalities can be completed without him coming to India. In case the NRI has given a power of attorney to someone in India then the process becomes much faster. In some countries the Indian Private and Nationalized banks have branches which make the processing of the home loan much quicker.

Price & Payment Related Questions

What is the Cost of the property and are there any extra charges involved You should remember the cost of the property and the prices of the other charges as explained in the price list.

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What are the pricing of the extra charges & why they are taken You should remember the other charges and the details of when they will be charged through reference of payment schedule. Can builder negotiate on the prices or what is the best price you can offer Good Builder normally dont negotiate on the prices, however the best price we can offer to the buyer depends from buyer to buyer, the way transaction is handled, trust of the buyer on you, any special requirement of the buyer and your convincing and negotiation skills. Is there any corporate discount or deal Some builders provide corporate deals or discount to certain companies if they do the agreed number of booking in a project. A corporate deal can also be negotiated with the builder if there is a group of people looking to buy a particular property with a minimum commitment of booking. Normally in a corporate deal the minimum number of booking committed are 50. What is the mode of payment The Mode of payment is cheque. On whose name the payment has to be done All the payments are made in cheque in the name of the builder. How much are the registration charges Already explained in the price list. Combination of Black & White Money Some builders takes combination of black & white money; however we dont encourage black transaction. What are the different payment options, DP, CLP etc Already explained in payment schedule. What is the rebate in case of down payment You should be aware of the down payment rebate offered in the project. Advantages and disadvantages of different payment plans already explained in the payment schedule. What all documents do I need for booking Is explained in the Booking Process chapter

Amenities and Specifications Related Question

Specification of the Flooring different projects have different kind of flooring for example granite flooring, Italian marble flooring, normal marble flooring, laminated wooden flooring, hard wood flooring, vitrified tiles flooring etc. Affordable projects have normal specification whereas luxury project have good specifications. Specifications of the bathroom and what all is provided by the builder i.e. Jacuzzi, Shower panel, Sauna, height of tiles etc different project have different kind of specifications, you can refer to the specification sheet provided by the builder to know the exact details. The better the specification the more are the prices of the property. Specifications of kitchen and what all is provided by the builder i.e. Modular, Oven , Hob, chimney, refrigerator etc refer to the specification list provided by the builder. Can we do modifications i.e. Addition of room, removal of wall, putting glass on balcony etc - Modification is possible only after possession and it should not affect the structure of the building, though changing the floor plans is illegal. Power Backup & Water Supply and the charges for the same refer the price list for the same, normally all the builder projects have 24 hours water supply.
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What all Facilities in Club House, dimensions of the swimming pool Refer to the specification sheet provided by the builder, the more the facilities the more is the cost of the project. Is the Buildings earth quake resistant as they are so high When a new project comes it has to take an approval from the Geological department for the building structure which ensures that the structure is made according to earthquake compliance regulation, the structure is made according to the seismic zone of the area. There are five seismic zones in India - zone I is least active, zone II is least to moderate, zone III is moderate, zone IV is high, zone V is highest. Noida, Greater Noida, Gurgaon, Faridabad and Ghaziabad all come in seismic zone IV. How about wooden cupboards and electricity fittings you can check the specification sheet of the project to find whether these specifications are provided or not. Is this a gated Community and what is the security Features Normally all the project we sell are 100% secured gated community. What is the height of the ceiling Ceiling means the distance between the floor and the roof, generally the height of the ceiling is around 9 feet. How many lifts are there in the building and Size of the lift: - The number of lift required in the building depends upon the number of apartment on the floor. Normally two lifts are there in a building, one is small and is used by the residents and one is big which is used for carrying household goods such as, cupboard, refrigerators, bed, sofa etc. to different floors; however it is also used by the residents. In some luxurious project a service lift is also provided which is used by the servants. Are the apartments air-conditioned, if Yes centrally air-conditioned or Split and if not will there be provision for the same You can check the specification sheet to figure out whether the A.C. are provided or not and the kind, centralized air-conditioning is provided in the luxurious project. Generally the provision of air-conditioning is provided in all the projects.

Generic Questions
What is the current Scenario of Real Estate Industry You can share you understanding of the current real estate conditions of the market. Which is better - under construction property or constructed property This totally depends on the requirement of the buyer, his budget, location & property he chooses. Construction normally depreciates over a period of time and if the property is not well maintained then the construction depreciates at a much faster rate. Constructed properties are costly as compared to under construction property so you have to understand the requirement of the buyer and suggest him accordingly. You have to convince him that it is worth waiting for couple of years for a new property. Who are the best builders in the country? Under construction Property available in both Primary Sale and Secondary Sale then whether to buy in primary sale or secondary sale - Generally the prices of the property is primary sales are higher than the secondary market, this is done intentionally by the builder to keep their investors happy it is also used as a sale technique to create a hype
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in the market and also to increase the profitability, the decision of buying in primary sales or secondary sales depends on the following factorsThe Comfort of the buyer, the process involved in secondary sale is more tedious as compared to the primary sales; the seller of the property normally prefers to take the premium in cash from the buyer. The prices at which the property is offered by the builder in the primary sales. The Unit/apartment available in Primary Sale and Secondary Sale, sometime builder holds the sale of a unit/apartment which is at premium location, as he wants to sell his premium located unit/apartment at a premium prices. Construction stage of the property, if the project is old and good quantity of construction (suppose 80%) is already completed, then in case of secondary sale the buyer needs to pay the entire amount to the seller in one go, some buyers are not comfortable in this as the same property is available with the builder in primary sales with leverage in payment plan. If the price difference in the Primary Sales and secondary sales is too high then it is more suggestible to buy in secondary sale. The payment already made towards the property is also is very important factor for the decision. Can a NRI Buy property without coming to India or a person can buy a property without physical presence - Yes both are possible, the processs of the same is defined in the booking process chapter.

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NRI FAQs
Who all can buy property in India: Only a Resident Indian, NRI (Non Resident Indian), PIO (Person of Indian Origin), OCI (Overseas Citizen of India) can buy property in India.
Resident India: - An Indian citizen who is ordinarily residing in India and holds an Indian passport. For all official purpose the Government of India considers Indian National who stays for more than 182 days in a year in India as a Resident Indian. NRIs: - An Indian citizen who is ordinarily residing outside India and holds an Indian Passport. A NRI is an Indian Citizen who has migrated to another Country. For all official purpose the Government of India considers Indian National away from India for more than 182 days, in a year as an NRI. Person of India Origin (PIO): - A person who or whose any of ancestors was an Indian national and who is presently holding another countrys citizenship/ nationality i.e. he/she is holding foreign passport. Any person who at any time held an Indian Passport; or he or either of his parents or grandparents was born in or was permanently resident in India as defined in Government of India Act, 1935 and other territories that became part of India thereafter provided neither was at any time a citizen of Afghanistan, Bhutan, China, Nepal, Pakistan and Sri Lanka; or who is a spouse of a citizen of India or a person of Indian origin as mentioned above. Overseas Citizen of India (OCI): -Also known as dual citizenship of India, A person registered as Overseas Citizen of India (OCI) under section 7A of the Citizenship Act, 1955. A foreign national, who was eligible to become citizen of India on 26.01.1950 or was a citizen of India on or at any time after 26.01.1950 or belonged to a territory that became part of India after 15.08.1947 and his/her children and grand children, provided his/her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as Overseas Citizen of India (OCI).Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she will not be eligible for OCI.

Does NRI/PIO/OCI require permission of The Reserve Bank to acquire residential/ commercial property in India: No Permission is required by anyone. What are the Types of property a NRI/PIO/OCI can buy in India: NRI/OCI/PIO can buy any residential or commercial property in India; however they cannot buy agriculture land in India. Are there any restrictions on numbers of properties that can be bought and sold by NRI/PIO/OCI: 35

There are no restrictions in terms of numbers of properties that can be bought by NRI/PIO/OCI; however they can sell only two properties in a financial year.

How are the payments made by the NRI/PIO/OCI: It is mandatory for NRI/PIO/OCI to make payments only from the below options for buying Property in India: NRE Account: - Known as Non Residential External account, these are special kind of accounts for NRIs. This account can be opened with any private or nationalized bank of India. NRO Account: - Known as Non Residential Ordinary account, these are special kind of accounts for NRIs. This account can be opened with any private or nationalized bank of India. FCNR Account: - Known as Foreign Currency National Rupee Account, these are special kind of accounts for NRIs. This account can be opened with any private or nationalized bank of India. Its a kind of fixed deposit account and one can maintain account in a choice of 6 currencies: USD, GBP, EUR, JPY, CAD and AUD. Wire Transfer: - it means transfer of payment directly from the Foreign Bank to the desired Indian bank account. Is this case a wire transfer remittance receipt is issued by the foreign bank confirming the amount transferred in Indian bank account. Foreign bank charges a wire transfer fee which is around 25$ minimum or is some cases a percentage of the amount to be transferred whichever is higher. NRE & NRO are the most commonly used accounts, differences between NRE & NRO Account: NRE Account
The interest on deposits and any other income accruing on the balance in the accounts are free of Indian Income-tax Remittances from the account to the country of residence of the account holder or any other country are freely allowed.

NRO Account
The interest on deposits and any other income accruing on the balance in the accounts is not free of Indian Income-tax Remittances from the account to the country of residence of the account holder or any other country is repatriable up to a limit of US $ 1 million in a financial year.

Money Deposited in this account can be Only Indian currency can be deposited in this foreign currency only which is converted into account Indian currency by the bank The balances in the accounts are free of The balance is not free from wealth tax
Wealth-tax.

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Can NRI/PIO/OCI acquire or dispose residential property by way of gift: Yes, NRI/ PIO/OCI can freely acquire immovable property in India by way of gift either from Resident Indian NRI/ PIO/OCI Again NRI/ PIO/OCI may gift residential/commercial property to Resident Indian NRI/ PIO OCI - with approval of RBI Can NRI/PIO/OCI sell their purchased property without the permission of Reserve Bank : Yes. Reserve Bank of India has granted general permission for sale of such property to the following categories:Resident Indian NRI PIO - with approval of RBI OCI - with approval of RBI Can the sale proceeds of such property (if and when sold) be remitted/repatriated out of India: Yes the sale proceeds can be remitted/repatriated out of India, In the event property acquired out of foreign exchange source i.e. remittance through normal banking channels NRE/ NRO FCNR/Wire Transfer accounts. The amounts to be repatriated should not exceed the amount paid for such property from such source. However, repatriation of sale proceeds purchased out of foreign exchange is restricted to not more than two residential properties, in a block of one year, with a facility of crediting the Capital gain to the NRO account. Again in the event the property was acquired out of NRO account, an amount not exceeding USD one million, per financial year, subject to tax compliance, out of balance held in NRO account, may be remitted / repatriated. In case of repatriation is there any tax liability to the Indian Government:
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Yes, during repatriation Capital Gain Tax (Long Term/Short Term) as applicable will be attracted. The charges for the same are already explained in the capital gain tax definition

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Can rental Income be repatriated by NRI/PIO/OCI: Repatriation of income derived out of letting of immovable property is permissible. NRI/PIO/OCI can rent out the property without approval of Reserve Bank. Rent received can be credited to NRO/NRE account or remitted abroad. Powers have been delegated to the Authorized Dealers to allow repatriation of current income like rent, interest, dividend etc. NRI/PIO/OCI who doesnt maintain an NRE/NRO account can take an appropriate certification by Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/ provided for. All the above terms are conditions involved in the purchase of property by NRI/PIO/OCI keeps on changing from time to time, so it is very important to keep yourself updated with the latest changes. For the latest updates and more comprehensive details of the related to NRIs process you can go through the following link on internet http://www.rbi.org.in/scripts/FAQView.aspx?Id=33#3

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Documents Required for Booking of a Property

Different types of documents are required for different category of people, given below are the details of the documents required accordingly to the respective category.

Resident Indian Category

Filled application form: - An applicant form also known as booking form is provided by the builder of the property mentioning the terms and conditions of the purchase of the property, the buyer are required is to fill the form in the format prescribed by the builder. An application form normally is made for maximum of three applicant(s). The precaution to be taken while filling the application form: The Name of all the applicant(s) should be mentioned correctly and clearly and in block letters. The address of communication for all the applicant(s) should be mentioned correctly and clearly and in block letters. The contact numbers and the email address of all the applicant(s) should be mentioned correctly and clearly and in block letters. Where ever things are not applicable that area of the application form should be striked off or NOT APPLICABLE should be mentioned. The details of the Unit number or the apartment should be mentioned correctly and clearly and in block letters. The details of the pricing should me mentioned correctly and clearly and in block letters. The payment plan buyer is interested in should be selected correctly and clearly. The application form should be duly signed by all the applicant(s) where ever (x) is mentioned, some builders requires the signature of the applicant(s) on all the pages of the application form, as a precautionary sake it is better to get the signature done of the applicant(s) on all the pages of the application form. Ensure that in case of joint applicant or more than two applicant(s) the application form is signed on all the pages by all the applicant(s). Dont ever do the signatures by yourself if you forgot to get it signed by the buyer as it is illegal. If any discount is provided by us to the buyer from our brokerage and is directly adjusted in the prices of the property it should be correctly and clearly mentioned in the price column of the application form. One photograph of all the applicant(s). We need to put our stamp i.e. PropTiger stamp in the application form at the place made for stamping and should select the column which says booking through Channel Partner and should mention our contact details correctly and the phone number to be mentioned should only be 9999266634, it is the most important part of the sales process, as builder counts a sale done by us only if the application form carries our stamp. As precautionary sake it is advised to
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put our stamp on all the pages of the application form and also behind the cheque. Cheque of the booking amount in favor of the builder, precautions to be taken while taking a cheque: The name in which the cheque is required should be mentioned clearly and correctly. In case of internet transfer i.e. money transferred from the buyer Indian bank account to the bank account of the builder, then a copy of screen shot of the internet transfer or a copy of bank account statement of the buyer is required. Correct amount should be mentioned in the cheque, both in figures and words. A cheque should not have any kind of overwriting; if some overwriting is there it should be duly signed. The date in the cheque should be mentioned correctly. The cheque should be payable at Par and should not be an outstation cheque, as outstation cheque is not accepted by the builder. A special precaution needs to be taken if the buyer of the property is not living in the same city in which he is buying the property, as in these cases sometimes buyer dont have a cheque which is payable at par in the city in which he is buying the property. A cheque from someone else account i.e. not the applicant(s) is also accepted by the builder in case of residential Indian, however it is advisable to take the cheque only from the applicant(s) account. Xerox copy of address proof of all the applicant(s) it can be passport, driving license, voter identification card, electricity bill etc. If address proof is not available for all the applicants ensure that it is mandatory for the first applicant to have a address proof; however it is advisable to have address proof of all the applicant(s) Copy of Pan Card of all the applicant(s), if pan card is not available then form 16 needs to be filled by the applicant(s). Normally any person buying the property has a pan card. It is advisable to have the copy of pan card of all the applicant(s).

NRI/PIO/OCI Category
Filled application form: - An applicant form also known as booking form is provided by the builder of the property mentioning the terms and conditions of the purchase of the property, the buyer are required is to fill the form in the format prescribed by the builder. An application form normally is made for maximum of three applicant(s). The precaution to be taken while filling the application form: The Name of all the applicant(s) should be mentioned correctly and clearly and in block letters.

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The address of communication for all the applicant(s) should be mentioned correctly and clearly and in block letters. The contact numbers and the email address of all the applicant(s) should be mentioned correctly and clearly and in block letters. NRI/PIO/OCI needs to select their respective status in the application form. A combination of a NRI/PIO/OCI and an Indian resident as applicant(s) is possible. Where ever things are not applicable that area of the application form should be striked off or NOT APPLICABLE should be mentioned. The details of the Unit number or the apartment should be mentioned correctly and clearly and in block letters. The details of the pricing should me mentioned correctly and clearly and in block letters. The payment plan buyer is interested in should be selected correctly and clearly. The application form should be duly signed by all the applicant(s) where ever (x) is mentioned, some builders requires the signature of the applicant(s) on all the pages of the application form, as a precautionary sake it is better to get the signature done of the applicant(s) on all the pages of the application form. Ensure that in case of joint applicant or more than two applicant(s) the application form is signed on all the pages by all the applicant(s). Dont ever do the signatures by yourself if you forgot to get it signed by the buyer as it is illegal. If any discount is provided by us to the buyer from our brokerage and is directly adjusted in the prices of the property it should be correctly and clearly mentioned in the price column of the application form. One photograph of all the applicant(s). We need to put our stamp i.e. PropTiger stamp in the application form at the place made for stamping and should select the column which says booking through Channel Partner and should mention our contact details correctly and the phone number to be mentioned should only be 9999266634, it is the most important part of the sales process, as builder counts a sale done by us only if the application form carries our stamp. As precautionary sake it is advised to put our stamp on all the pages of the application form and also behind the cheque.

Cheque of the booking amount in favor of the builder, precautions to be taken while taking a cheque: The name in which the cheque is required should be mentioned clearly and correctly. The cheque can only be from NRE/NRO or FCNR account and should be payable at par. In case of wire transfer copy of remittance slip is required.

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Correct amount should be mentioned in the cheque, both in figures and words. Sometime NRI/PIO/OCI writes ten Lacs as one million and one lac as hundred thousand ensure that the amount is written in Indian writing standards. A cheque should not have any kind of overwriting; if some overwriting is there it should be duly signed. The date in the cheque should be mentioned correctly, sometime NRI/PIO/OCI write date in MM/DD/YYYY format which is not accepted in India, the date should be in DD/MM/YYYY format. The cheque can only be from the account of the applicant(s). Xerox copy of Indian Passport in mandatory in case of NRIs applicant(s) for all the applicant(s), Xerox copy of PIO card is mandatory in case of PIO applicant(s) for all the applicant(s) and Xerox copy of OCI card is mandatory in case of an OCI applicant(s) for all the applicant(s). Copy of Pan Card of all the NRI/PIO/OCI applicant(s), if pan card is not available then form 16 needs to be filled by all the NRI/PIO/OCI applicant(s). Some of the builders dont require Pan Card and form 16 in case of NRI/PIO/OCI applicant(s). In case of demand draft (DD), the confirmation from the banker stating that the DD has been prepared from the proceeds of NRE/NRO/FCNR account of the Applicant.

Partnership Firm: Filled application form: The Name of the Partnership Firm should be mentioned correctly and clearly and in block letters. The address of communication for all the Partnership Firm should be mentioned correctly and clearly and in block letters. The contact numbers and the email address of the Partnership Firm should be mentioned correctly and clearly and in block letters. Where ever things are not applicable that area of the application form should be striked off or NOT APPLICABLE should be mentioned. The details of the Unit number or the apartment should be mentioned correctly and clearly and in block letters. The details of the pricing should me mentioned correctly and clearly and in block letters. The payment plan buyer is interested in should be selected correctly and clearly. The application form should be duly signed by all the partners of Partnership Firm where ever (x) is mentioned, some builders requires the signature of the all the partners of Partnership Firm on all the pages of the application form, as a precautionary sake it is better to get the signature done of all the partners of the Partnership Firm on all the pages of the application form. In case of one of the
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partners has signed the application form, then an authority letter from the other partners authorizing the said person to act on behalf of the firm is required . A stamp of the Partnership firm should be affixed on the signatures of all the partner(s) If any discount is provided by us to the buyer from our brokerage and is directly adjusted in the prices of the property it should be correctly and clearly mentioned in the price column of the application form. We need to put our stamp i.e. PropTiger stamp in the application form at the place made for stamping and should select the column which says booking through Channel Partner and should mention our contact details correctly and the phone number to be mentioned should only be 9999266634, it is the most important part of the sales process, as builder counts a sale done by us only if the application form carries our stamp. As precautionary sake it is advised to put our stamp on all the pages of the application form and also behind the cheque. Cheque of the booking amount in favor of the builder, precautions to be taken while taking a cheque: The name in which the cheque is required should be mentioned clearly and correctly. In case of internet transfer i.e. money transferred from the buyer Indian bank account to the bank account of the builder, then a copy of screen shot of the internet transfer or a copy of bank account statement of the buyer is required. Correct amount should be mentioned in the cheque, both in figures and words. A cheque should not have any kind of overwriting; if some overwriting is there it should be duly signed. The date in the cheque should be mentioned correctly. The cheque should be payable at Par and should not be an outstation cheque, as outstation cheque is not accepted by the builder. A special precaution needs to be taken if the buyer of the property is not living in the same city in which he is buying the property, as in these cases sometimes buyer dont have a cheque which is payable at par in the city in which he is buying the property. A cheque from someone else account i.e. not the applicant(s) is also accepted by the builder in case of Partnership Firm, however it is advisable to take the cheque only from the applicant(s) account. Copy of Partnership Deed. Copy of PAN card of the Partnership Firm.

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Private Limited & Limited Company: Filled application form: The Name of all the Company should be mentioned correctly and clearly and in block letters. The address of communication for the Company should be mentioned correctly and clearly and in block letters. The contact numbers and the email address of the Company should be mentioned correctly and clearly and in block letters. Where ever things are not applicable that area of the application form should be striked off or NOT APPLICABLE should be mentioned. The details of the Unit number or the apartment should be mentioned correctly and clearly and in block letters. The details of the pricing should me mentioned correctly and clearly and in block letters. The payment plan buyer is interested in should be selected correctly and clearly. The application form should be duly signed by the authorized signatory of the company where ever (x) is mentioned, some builders requires the signature of the authorized signatory of the company on all the pages of the application form, as a precautionary sake it is better to get the signature done of the authorized signatory of the company on all the pages of the application form. A stamp of the company should be affixed on the signatures of the authorized signatory of the company. If any discount is provided by us to the buyer from our brokerage and is directly adjusted in the prices of the property it should be correctly and clearly mentioned in the price column of the application form. We need to put our stamp i.e. PropTiger stamp in the application form at the place made for stamping and should select the column which says booking through Channel Partner and should mention our contact details correctly and the phone number to be mentioned should only be 9999266634, it is the most important part of the sales process, as builder counts a sale done by us only if the application form carries our stamp. As precautionary sake it is advised to put our stamp on all the pages of the application form and also behind the cheque. Cheque of the booking amount in favor of the builder, precautions to be taken while taking a cheque: The name in which the cheque is required should be mentioned clearly and correctly. In case of internet transfer i.e. money transferred from the buyer Indian bank account to the bank account of the builder, then a copy of screen shot of the internet transfer or a copy of bank account statement of the buyer is required.
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Correct amount should be mentioned in the cheque, both in figures and words. A cheque should not have any kind of overwriting; if some overwriting is there it should be duly signed. The date in the cheque should be mentioned correctly. The cheque should be payable at Par and should not be an outstation cheque, as outstation cheque is not accepted by the builder. A special precaution needs to be taken if the buyer of the property is not living in the same city in which he is buying the property, as in these cases sometimes buyer dont have a cheque which is payable at par in the city in which he is buying the property. A cheque from someone else account i.e. not the applicant(s) is also accepted by the builder in case of company, however it is advisable to take the cheque only from the applicant(s) account. Article of Association (AOA) & Memorandum of Association (MOA) duly signed by the Company Secretary / Director of the Company. Board resolution on the companys letter head authorizing the signatory of the application form to buy property on behalf of the company duly authenticated by any other Director of the Company. Copy of PAN card of the company.

Hindu Undivided Family (HUF): Filled application form: The Name of all the HUF should be mentioned correctly and clearly and in block letters. The address of communication for the HUF should be mentioned correctly and clearly and in block letters. The contact numbers and the email address of the HUF should be mentioned correctly and clearly and in block letters. Where ever things are not applicable that area of the application form should be striked off or NOT APPLICABLE should be mentioned. The details of the Unit number or the apartment should be mentioned correctly and clearly and in block letters. The details of the pricing should me mentioned correctly and clearly and in block letters. The payment plan buyer is interested in should be selected correctly and clearly. The application form should be duly signed by the Karta of the HUF where ever (x) is mentioned, some builders requires the signature of the Karta of the HUF on all the pages of the application form, as a precautionary sake it is better to get the signature done of the Karta of the HUF on all the pages of the application form. A stamp of the HUF should be affixed on the signatures of the Karta.
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If any discount is provided by us to the buyer from our brokerage and is directly adjusted in the prices of the property it should be correctly and clearly mentioned in the price column of the application form. We need to put our stamp i.e. PropTiger stamp in the application form at the place made for stamping and should select the column which says booking through Channel Partner and should mention our contact details correctly and the phone number to be mentioned should only be 9999266634, it is the most important part of the sales process, as builder counts a sale done by us only if the application form carries our stamp. As precautionary sake it is advised to put our stamp on all the pages of the application form and also behind the cheque. Cheque of the booking amount in favor of the builder, precautions to be taken while taking a cheque: The name in which the cheque is required should be mentioned clearly and correctly. In case of internet transfer i.e. money transferred from the buyer Indian bank account to the bank account of the builder, then a copy of screen shot of the internet transfer or a copy of bank account statement of the buyer is required. Correct amount should be mentioned in the cheque, both in figures and words. A cheque should not have any kind of overwriting; if some overwriting is there it should be duly signed. The date in the cheque should be mentioned correctly. The cheque should be payable at Par and should not be an outstation cheque, as outstation cheque is not accepted by the builder. A special precaution needs to be taken if the buyer of the property is not living in the same city in which he is buying the property, as in these cases sometimes buyer dont have a cheque which is payable at par in the city in which he is buying the property. A cheque from someone else account i.e. not the applicant(s) is also accepted by the builder in case of HUF, however it is advisable to take the cheque only from the applicant(s) account. Authority letter from all co-parcenors of HUF authorizing the Karta to act on behalf of HUF. Copy of PAN card of HUF.

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Sales and Post Sales Process of Booking a Property

Holding of a Unit No. /Apartment No.: - Once a buyer has finalized the property, buyer wants couple of days for doing the booking formalities and arranging finances, for this duration the apartment can be put on hold with the builder. The holding process varies from builder to builder and also depends on the sales flow of the project, if the sales are fast then the holding of the apartment is not possible, holding also depends on your relations with the builder. Holding of apartment is majorly used in case Outstation Buyer and NRI/PIO/OCI cases, as in these cases the documents are send to us via courier and it takes one to seven days for the documents to reach us. Holding of apartment in case of the Buyer and the Project in the same city should not be encouraged and for holding a Unit No. /Apartment No. a scanned/Fax copy of the cheque and application form is required. There are many cases of booking of a property in which Unit No. /Apartment No. is not available at the time is booking. In such cases priority number is given by the builder or duration is told in which the allotments will be done, in these case you have to take the choices of the Unit No. /Apartment No. the buyer wants to buy, such as Floor Preference, directions and any other specific requirement for ensuring that the buyer gets an Unit No. /Apartment No. of their choice. Depositing of Documents: - different processes are followed according to the category of the buyer In case of Resident Indian (Buyer and Project in same city): - Once the Unit No. /Apartment No is fixed; the documents required according to the respective category are deposited with the builder. In case of NRI/PIO/OCI or Resident Indian(Buyer and Project in different city): 1. You need to get the scanned/fax copy of all the required documents, also get the courier tracking number; this also ensures that the buyer is a genuine buyer. 2. In case all the documents are send via courier then you have to wait for the courier to reach us, once all the documents are received in original then they are deposited with the builder. 3. The process can be much faster, if you can arrange the buyer to do Internet Transfer, wire transfer or sometime a local relative of the buyer have the blank cheque books of the buyer specially in case of NRI/PIO/OCI, then there are many builder who are ok with the scanned/fax copies of the documents and they dont require the original documents or the original documents can be submitted at a later stage, the booking can be deposited with the scanned/fax copy of the Internet Transfer Slip/Wire Transfer remittance slip and the scanned/Fax copies of all the all the required documents.

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Credit Note: - Credit Note is a letter given to the buyer by the broker in case any discount is provided by the broker to the buyer from the brokerage and the discount is not adjusted by the builder in the prices of the property. It mentions the cash back discount being offered to the buyer and the terms and conditions of the cash back discount. A credit not is also provided if we need to pay reference money to someone We need to get the Authorization Letter and the Booking Request Form signed from the buyer. This letter is also a kind of confirmation from the buyer that he has booked a property through us. Once the booking is deposited with the builder then normally builder gives an acknowledgement on the photocopies of the buyer documents, some builders also issue a payment receipt (that is subject to realization of the cheque) at the time of booking itself. Once the cheque provided by the buyer is cleared or Internet Transfer/Wire Transfer hits the builder account then a payment receipt is issued by the builder. The payment receipt is directly sent by the builder to the buyer or else we get it collected and send it across to the buyer, the payment receipts are generally given from 10-15 days of the clearing of the cheque. After this an allotment letter along with the property cost and payment schedule is sent to the buyer by the builder or else we get it collected and send it across to the buyer. Sometime the payment receipt and the allotment letter are sent together, the allotment letter is normally send in around 20 -30 days of booking. Then 2 copies of the builder buyer agreement are sent by the builder to the buyer or else we get it collected and send it across to the buyer. The buyer is required to sign on all the pages of the builder buyer agreement on both the copies (all the Applicants need to sign) and send both the copies back to the Builder. The authorized signatory of the builder then sign on both the copies and one copy is retained by the builder and one copy is send back to the buyer. In case of many builders allotment letter is merged with the builder buyer agreement, the builder buyer agreement is sent in around 45 60 days of the booking. According to the payment plan payment continues and the buyer receives payment receipts for every payment made. Cash Back discount if applicable is paid to the buyer by the broker in accordance to the terms and conditions. Cash back is paid after deducting TDS and it is mandatory, however in order to assist the buyer against Income tax obligation cash back cheque can be given in name of someone else if required.

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Finally a possession letter is sent to buyer at the time of possession mentioning the documents required for registration and the final formalities. Then a date is fixed with the buyer for registration, the buyer is required to be physically present at the time of registration or else he can give Power of Attorney to someone to do the registration on his behalf. In case of joint applicants POA is required for both the applicants.

Precautions to be taken while doing a booking

Ensure that you take the acknowledgement of the Applicant Form deposited with the builder it should be acknowledged with stamp, name and signature of the builder employee. Ensure PropTiger stamp in the application form at the place made for stamping and should select the column which says booking through Channel Partner and should mention our contact details correctly and the phone number to be mentioned should only be 9999266634, it is the most important part of the sales process, as builder counts a sale done by us only if the application form carries our stamp. As precautionary sake it is advised to put our stamp on all the pages of the application form and also behind the cheque. In case you do not have the stamp or builder does not allow stamping on the form, clearly mention PropTiger as the Broker/Channel Partner/Reference as applicable. Ensure that you get Authorization Letter and the Booking Request Form duly signed by the buyer. In case of any special commitment from the builder, it should be clearly mentioned on the application form and acknowledged with stamp, name and signature of the builder employee for eg. If booking are done at old rate and currently new rates are prevailing then it should be clearly mentioned Booking At Old Rate of Rs. xxxx Ensure that whatever document of the buyer you deposit with the builder in future for example Instalment cheque, builder buyer agreement etc, you should take an acknowledgement of the same from the builder. A receiving on the copy of the credit note from the buyer of his acceptance of credit note. Ensure that you are in regular touch with your client till the time cheque is not cleared or till the time booking is not 100% final. We dont do booking which involves cash.

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Cancellation of Property
Cancellation of the Property can happen from both builders as well as buyers end -

Buyers End
Legally and according to the terms and conditions of the application form and the builder buyer agreement, builder has the right to forfeit the earnest money which is 10% of the cost of the property in event of a cancellation by the buyer, cancellation doesnt come into the picture if the prices of the property at which the buyer bought the property have appreciated and a good resale market exist for the property . Cancellation mostly come into picture if the buyer has bought the property primarily for investment purpose, different builders follow different kind of processes if a buyer of the property wants to cancel the property, process also depends on the reason of cancellation. Below are some of the scenarios Buyer wants to do cancellation as he not any more interested in the project because of his own reasons In this case builder normally forfeit the earnest money. Buyer wants to do cancellation because of his financial crisis builder takes the buyer one on one and understand his problem, in this case he might do a 100% refund or deduct administrative charges varying from 10,000 to 1,00,000 (Is is also linked to the cost of the property here I am considering the property to be between 20 50 lacs), some builder may also stick to the legal policy and may forfeit the earnest money. Buyer wants to do cancellation because of any miss happening health related issues, deaths, divorce between husband & wife, fight between the partners (Buyers) of the property - builder takes the buyer one on one and understand his problem, in this case he might do a 100% refund or deduct administrative charges varying from 10,000 to 1,00,000 (Is is also linked to the cost of the property here I am considering the property to be between 20 50 lacs), some builder may also stick to the legal policy and may forfeit the earnest money. Buyer wants to do cancellation because the project is delayed builder normally convince the buyer that the project will be delivered on time, if the builder is more than 50% confident of the same then he always pressurizes the buyer for the forfeiture or else builder might do a 100% refund or deduct administrative charges varying from 10,000 to 1,00,000 (Is is also linked to the cost of the property here I am considering the property to be between 20 50 lacs). The builder sometime avoids cancellation by offering some other product he has. Buyer wants to do cancellation as his Unit No./Apartment No. has changed or sizes have changed or building position has changed: - In this case normally a builder try to convince the buyer with the reasons of changes and it might happen that this time
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buyer may get even a much better apartment, builder might do a 100% refund or deduct administrative charges varying from 10,000 to 1,00,000(Is is also linked to the cost of the property here I am considering the property to be between 20 50 lac), some builder may also stick to the legal policy and forfeit the earnest money. Buyer wants to do a cancellation as the prices have crashed: - builders normally dont accept any cancellation request at this time as in this scenario everyone goes through a financial crisis, during this situation builder normally waits a little time for the market to get recovered or else he reduces the price and offer the property at the existing price to the buyer. Buyer can cancel the property and can get 100% refund if he approaches the builder with some special reference or a group of buyers get united and stand together because of the wrong commitment of the builder.

Builder End
The Project didnt have required approvals sometime builder are not able to get 100% approvals for the project and hence the project is scrapped, in this case good builder cancel the booking and give 100% refund to the buyer along with a simple interest of around 9 to 12% p.a., some builders do 100% refund but dont provide any interest to the buyer. The project was not a success or builder is not in a position to build the same because of financial crisis In these case good builder cancel the booking and give 100% refund to the buyer along with a simple interest of around 9 to 12% p.a., some builders do 100% refund but dont provide any interest to the buyer. Builder becomes greedy as there is good appreciation of Prices in the market and builder has sold the property at cheaper prices In this case builder creates a situation for the buyer for example increasing the sizes, specification or charging some irrelevant money so that buyer becomes agitated and applies for cancellation, in this case builder is more than happy to do the cancellation and give them 100% refund with attractive interest. Good builder never involve them in these kinds of practices.

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Business Done & Collections

In Primary sales business is generated once we do a booking of a unit/apartment of a buyer in a particular project of a builder, the revenue generated from the transaction is called business done, for example if we sell a property worth Rs. 50 Lacs and our brokerage in 2% then the business done is 1 Lac, however Rs. 1 Lac is collected from the builder over a period of time and is called collection. Collection is the backbone of our business; different builders have different terms and conditions for releasing the money, a normal collection cycle is 6 to 9 months. Some builders pay the money as part payments and some builder pay the money in one go. The release of money is linked with two factors Payments of Instalments by the buyer. Execution of the builder buyer agreement, in some case builder doesnt pays us any money if the builder buyer agreement in not executed though the buyer has paid all the instalment. Some example as how the money is released from the builder DLF: 100% of our payment once the buyer has paid 25% of the payment toward the apartment and builder buyer agreement has been executed. If the buyer pays 50% payment but the builder buyer agreement is not executed then we dont get eligible for the payment. Unitech: 1/3 of our payment once the buyer has paid 10% of the payment toward the apartment. 1/3 of our payment once the buyer pays next 10% of the payment toward the apartment. 1/3 of our payment once the buyer pays next 10% of the payment toward the apartment and the builder buyer agreement has been executed. 3Cs: 50% of our payment once the buyer has paid 20% of the payment toward the apartment. 50% of our payment once the buyer has paid 45% of the total cost toward the apartment and the builder buyer agreement has been executed. Amrapali: 20% of our payment once the buyer has paid booking amount. 20% of our payment once the buyer has paid 10% of the payment toward the apartment. 20% of our payment once the buyer has paid 20% of the payment toward the apartment. 20% of our payment once the buyer has paid 30% of the payment toward the apartment. 20% of our payment once the buyer has paid 40% of the payment toward the apartment and the builder buyer agreement has been executed.
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In case of down payment builder normally pays us 100% payments in one go, once the buyer makes the down payment. Normally the upward limit of the release of our 100% brokerage from various developers is 50%. By going through the above example one can analyse that our payment gets stuck if the buyers stops paying because of any reason, the major reasons are Financial crunch of the buyer. Any miss happening with the buyer health related issues, deaths, divorce between husband & wife, fight between the partners (Buyers) of the property. Financial crunch of the builder. Delay from the builder in construction. Delay from the builder in getting approvals of the project. Delay from the builder in home loans approvals. Market conditions. Due to any dispute buyer refuses to sign on the builder buyer agreement. We have to ensure that we assist the buyer in the best possible manner after booking and make certain that buyer pays his entire instalment on time and do all the documents of the property timely else our collection becomes a question which we cannot afford. So a strong follow up is needed with the buyer after the booking is done and you have to maintain a regular touch with the client till the time he doesnt get the possession of the property. Incentives of the employee are directly related to collection. So collection is the backbone for both the employee as well as the organization For ensuring a smooth collection the below precautions need to be taken while selecting a project to sell from a particular builder: Reputation of the builder In terms of past project delivered, construction speed, Fair practice followed with the buyer & release of brokerage to the brokers in the previous projects. Approval of the project what is the current status of the approvals from various departments, if the project is in too early stage of approval and the builder reputation is not too go then it is advisable not to sell the project. Construction stage of the project. Terms and conditions of release of brokerage If the release our brokerage is quick then we might look at risky projects also, for example we get 100% payment on 15%. Financial conditions of the builder.

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Recording of Sales
Whenever a sale is done its needs to be reported in back office within 24 hours of the sale, if the sale is not reported within 24 hours, then the credit if the sale goes to the organization and not to the agent. Given below is the format in which the details of the sale are required to be sent to back office. Format of Recoding a Sale: - Transaction Closure Form The Date on which the sales was logged with the developer Name as mentioned on the booking form, in case of more than once applicant, name of all the applicants in the sequence of 1st, 2nd & 3rd applicant. The email address of the client which exist in our CRM and through which the lead was closed won, in case the email is not their mention the reason for not having an email Contact numbers of the clients, mention all the contact numbers of the client. Communication Address of the client Name of the project and location Name of the Builder Apartment, Plot, Villa etc The size of the property for example - 1350 sq.ft., 1850 sqft, 200 sq.yd. Plot, 350 sq.yd. Villa. The BSP of the builder in accordance to the payment plan selected by the client. Here you need to mention the existing actual price of the builder on which we will get our commission and not the price on which the property is sold. Rate per square feet of the PLC, PLC needs to be mentioned only if we get commission on PLC. In case of fixed PLC mention the exact amount. Cost of the parkings, in case of 2 parking mention them separately. Parking needs to be mentioned only if we get commission on the same. Any other factor, if we get commission on the same needs to be mentioned, mention the factor name. The amount paid by the client along with the application form Cheque number through which booking amount is
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Login Date

Customer Name

3 4 5 6 7 8 9

Email ID Mobile Number Address Project Name / Location Builder Name Type of Property Size (in Sq. Feet / in Sq. Yds)

10

BSP (Rs. / Sq. Ft. or Sq. Yds.)

11

PLC (Rs. / Sq. Ft. or Sq. Yds.)

12 13 14 15

Parking (Total in Rs.) Others (Total in Rs.) Booking Amount Booking Ch. No.

16 17 18

Payment Plan Unit Number (If Available) Commission (in % & Amount)

19 20 21 22

Commission Formula Booking through Sub-Broker? Name of Sub-Broker

BSP Adjustment (% of BSP and Amount) 23

Sub-Broker Commission / Loyalty Discount (% of BSP and Amount) 24 Net Revenue (in Rupees)

paid The payment plan customer has opted for Unit No/Priority No. of the property sold, in case both are not available then the reason for the same. Gross Commission earned from the deal Mention the Percentage of commission and the factors on which we get the commission from the builder. Yes / No Name if some Sub broker has done booking through us. You need to mention the login rate after the direct adjustment discount provided by us and also mention the Percentage of discount/ per sqft Discount or the amount of flat discount. Mention the percentage and the factors on which the discount is offered, in case is it given as rate per sq ft then mention the exact discount per sq ft. and in case it is an exact amount mention the exact amount. A special precaution needs to be taken here - for example if the rate of the property is Rs.1965/sqft and the direct adjustment is 7% of BSP then while filling the booking form you need to ensure that you mention the exact rate i.e. 1827.45, if you mention the rate as 1827 then the discount becomes (7%+0.45/sqft) then in this case you should mention the discount as 138/sqft and in case you mention the rate as 1828 then you should mention the discount as Rs.137/sqft as the discount becomes a little less than 7%. Mention the percentage and the factors on which the discount is offered, in case is it given as rate per sq ft then mention the exact discount per sq ft. and in case it is an exact amount mention the exact amount. A special precaution needs to be taken here as we provide cash back discount on adjusted BSP, for example if the rate of the property is 3000, direct adjustment is 3 %, and cash back discount is 2%, then the cash back of 2% will be provided on the BSP of 2910 & not on 3000. Mention the actual earning from the deal after the direct & cash back discount in accordance to your calculation. A special precaution needs to be taken
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25 Executive Name Special Remarks

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if we get commission on PLC & Parking also. For Example if BSP of a property is 50 Lac, PLC is 1 Lac and parking in 2 Lacs and our commission is 3% of BSP, PLC and Parking. Now if we have given a discount of 2% to the client on BSP then our brokerage will be 1% on BSP & 3% on PLC & Car Parking i.e. Rs. 59,000/The Name of the agent who has done the sale, in case of sharing multiple name's and percentage of sharing for each agent Any special remark related to the transaction

Process of Recording a Sale

An email in the above format needs to be sent to noidaoperations@proptiger.com with a Cc to all the reporting managers and prashan.agarwal@proptiger.com. The form should
be attached as well as pasted in the body of the mail. This has to be done the same day the sale closure happens.

The subject line of the mail should be only be Transaction Details/Builder Name/Project Name/Client name for example Transaction Details /Jaypee/Kosmos/Rahul Khanna. If we need to give a Credit Note to the customer, this can be issued by the Operations Person once he gets the Transaction Closure Form The Hard copies of the following documents should be sent to Operations team (Noida Office) within 3 days of registering the Sales order failing to which the credit of the sale will not be given to the agent. Its mandatory to send the hard copies of the following documents: Photocopies of the pages of booking form which should cover the following details Cheque details, Applicant contact information, property size & pricing information, the page which mentions that the booking is done through PropTiger and the page which has acknowledgement of builder. Photocopy of the cheque or wire transfer. A Copy of the Credit Note duly received by the buyer. In case of NRIs & outstation client get an email confirmation and take a print of the same. Original Copy of Authorization Letter and the Booking Request Form duly signed by the buyer. In case of NRIs/outstation clients get a scanned copy of the same. In Case a booking is done through any broker, then an original copy credit note from the broker needs to be deposited. Any Modification in the Transaction in future should immediately be reported in the same format mentioning the reason of modification. Any cancellation of the Transaction in future should immediately be reported in the same format mentioning the reason of cancellation. Any deviation in the process from the agent will lead to withdrawal of the credit of the sale from the agent.
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Key Growth Factors for an Employee

Growth of an employee is directly related to the growth of the organization, so you have to make sure then your organization grow at a rapid pace thus providing you with the opportunities of growth. Opportunities dont come very often so you have to ensure that you grab the same whenever it comes or else you create an opportunity for your own. Opportunities are given to the best employees and depend on the various factors as explained below: Sales Target Vs Actual Target: - A sales target is given to an employee on monthly basis, however achieving the sales target doesnt mean you are the best. For example if the sales target given in an year is 20 lacs and there are 10 employees and they have to be ranked A, B, C & D in the end of the year, out of 10 employees 2 employees do a business of 40 lacs, 4 do a business of 30 lacs, 2 do a business of 25 lacs and 2 do a business of 20 lacs. Then the employees who has done 20 lacs will get D irrespective of the fact that the achieved he achieved the target of 20 lacs. Taking the same example if 2 employees do a business of 25 lacs, 4 do a business of 20 lacs, 2 do a business of 19 lacs and 2 do a business of 18 lacs. Then the employees who have done 20 lacs will get B. The benchmark of the grading is set from the top of the table as the working conditions are same for everyone. Consistent Performance : - along with sales done, how the sales are done is also a very important criteria for a employees growth i.e. the sales consistency on monthly basis, the number of properties sold, the kind of property sold and the kind of clients catered. Market Assessment: - It is one of the most important tool for increasing your sales, by market assessment we meanYou should be aware about all the current projects from various builders, their pricing and sizes, no matter we are selling the project on not. You should also be aware of the various projects which are supposed to come in near future from various builders. You should be aware of all new developments & news related to real estate sector. By doing a market assessment we should be in a position to answer the following question: What projects to sell & why we sell a particular project. What projects not to sell & why not to sell a particular project.
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What to focus on More number of sales or more revenue per deal. Market assessment can be increased by registering yourself with various internet sites related to real estate, regular reading of newspaper specially the Saturdays & Sundays newspaper related to real estate and getting yourself registered with various builders & real estate agents as an buyer. By doing a strong market assessment you can always do a comparison of various projects available in the market, hence giving more comfort & confidence to the buyer in buying property from you. Competition Analysis: - it is also a very important tool for increasing the sales, you should always be aware of your competitors in the industry as a whole and your competitor for your particular project. If you are aware of both the things then if your buyer clashes with your competitor then you will be better prepared to handle the buyer as you are aware of the strengths and weaknesses of your competitor and you can handle your buyer accordingly. It also helps you in answering as what to sell & what not to sell, as in case of marketing assessment, competition analysis also can be done by registering yourself with various internet sites related of real estate, regular reading of newspaper specially the Saturdays & Sundays newspaper related to real estate and getting yourself registered with various builders & real estate agents as an buyer. Customer Service : - how happy are the customer after the sales is very important criteria for employees growth, it also helps in increasing your sales as only if your client is happy with your services only then he provide you with references. You need to ensure that you honor each and every commitment that you have made to your client and give a special treatment to client in case of any problems faced. Good Customer service helps in enhancing the collection also. Practically, sometime you might get in to a situation where your buyer is in problem and you dont have any solution for his problem, ensure that you present a clear picture to your buyer as because of your trust the buyer bought the property. Never ignore your clients call or email, if due to some reason you are not able to attend the call of the client or unable to answer an e mail, then ensure that you contact your client in due course. Solution Selling: - Solution selling is a integrated part of customer services as sometime buyer faces different problems for example wrong allotment by the builder, interest wave off, any delay in documents, change in the prices, change in size, change in the size layout plan, unintentional wrong commitment by employee etc. So the employee needs to ensure the 100% satisfaction is given to the client by suggesting various options.

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Documentations & Order Recording employee need to ensure that they strictly follow the process laid down by the company. CRM Management - employee need to ensure that they strictly follow the process laid down by the company. Negotiation Skills: - the kind of work we are involved required very good negotiation skills, emotion is an enemy of negotiation, you need to ensure that whenever you are giving a special service to the buyer you charge extra for him or if we are having a product in which we have monopoly of brokerage or inventory then you charge extra from the buyer. The person who is buying a property is doing a lifetime investment so you have to be very careful while negotiating with the buyer, a buyer will always say that he is getting a better price that what you have offered him in this case you have to bring your market & competition analysis in use. Initiative, Innovation, learning attitude, team spirit, Integrity & courage are other important factors. Discipline: - employee needs to ensure that they strictly follow the process laid down by the company, and also follow the processes for Mobile & conveyance reimbursement, HRIS & Cab booking.

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