pt training module[1]

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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 (NRI’s) .............................. 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 FAQ’s .............................................................................................................................................. 35

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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

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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.

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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.

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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

� Duplex’s

� Studio

� Land/Builder Plots

� Villas/Kothi’s/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 don’t 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.

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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

3B’s of Primary Sales

The Business of Primary Sales revolves around the 3B’s 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 doesn’t 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 it’s 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.

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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 acre = 4046.85 sq.mt.

1 sq.yd. = 9 sq.ft. 1 marla = 30 sq.yd.

1 sq.mt. = 1.196 sq.yd. 20 marla = 1 kanal

1 sq.yd. = .83 sq.mt. 1 kanal = 600 sq.yd.

1 acre = 4840 sq.yd. 8 kanal = 1 Acres

1 acre = 43560 sq.ft. 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.

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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 doesn’t 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 it’s 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 NRI’s 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, it’s

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, it’s 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 Jaypee’s

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 don’t 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 PLC’s 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: - builder’s 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: - it’s a kind of covered car parking provision on the ground floor, since

the ground floor of the building doesn’t 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

parking’s 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. It’s a onetime mandatory charge to be paid. The money collected

from this is deposited in a bank account but the residents of the complex don’t 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 façade of the building.

IBMS: - Interest Bearing Maintenance Security Deposit is used for the same purpose as IFMS,

it’s 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; it’s 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 don‘t want

to shift as they are NRI’s 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

20

doesn’t 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 builder’s keeps first “one to two” transfers free of cost on

the other hand some builders don’t allow the transfer of the property till 30 % to 40% of the

cost of the property is not received or in some cases they don’t 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: - It’s 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 doesn’t 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 doesn’t 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 doesn’t 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 doesn’t 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

don’t 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. NRI’s 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 doesn’t 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 don’t charge any prepayment

penalty. Private Banks normally charges prepayment penalty of 2% on the outstanding

principal. Some private banks don’t charge any prepayment penalty if the prepayment is

done from own sources i.e. the property is not sold or it’s 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.

� NRI’s don’t get any income tax benefit for the interest paid on home loan.

� NRI’s, 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 NRI’s don’t 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 Builder’s 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.

[Builder’s letter head]

1. Name of managing committee members with specimen signatures

S No Name Signature

1

2

3

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)

27

� Chain of property document.

� Investment proof (photocopy)


(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).


(NRI’s)

� 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 Bank’s format, it’s mandatory for a NRI’s to give his Power of

Attorney to any of its family member or friends for availing a home loan.

28

Process of Sanctioning and Disbursal of Home Loans: -

� Sanctioning of Loan: - A buyer depending upon his classification i.e. salaried, self-

employed, 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: - It’s 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.

� What’s your Interest in helping me buying the property? – We get a brokerage from the

builder for selling his property and we don’t 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 don’t 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 don’t charge anything

from you and our earning comes from the builder so we are very selective with the

30

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 MNC’s.

� 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.

31

� 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 don’t 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 doesn’t have money for the initial

contribution that you can suggest him to take a personal loan for the same, however,

don’t 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 don’t 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 don’t 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.

33

� 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

34

in the market and also to increase the profitability, the decision of buying in primary

sales or secondary sales depends on the following factors-

� The 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 process’s of the same is defined in the

booking process chapter.

35

NRI FAQ’s

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.

� NRI’s: - 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 country’s 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: -

36

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 NRI’s. 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 NRI’s. 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 NRI’s. This account can be opened with any private or nationalized

bank of India. It’s 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 NRO Account The interest on deposits and any other

income accruing on the balance in the accounts are free of Indian Income-tax

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 are freely allowed.

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

foreign currency only which is converted into

Indian currency by the bank

Only Indian currency can be deposited in this

account

The balances in the accounts are free of

Wealth-tax. The balance is not free from wealth tax

37

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: -

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

38

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 doesn’t 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 NRI’s process

you can go through the following link on internet

http://www.rbi.org.in/scripts/FAQView.aspx?Id=33#3

39

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). Don’t 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

40

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 don’t 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.

41

� The address of communication for all the applicant(s) should be mentioned


� The contact numbers and the email address of all the applicant(s) should be


� 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.






letters.


� 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). Don’t ever do

the signatures by yourself if you forgot to get it signed by the buyer as it is

illegal.




� One photograph of all the applicant(s).








cheque.


taking a cheque: -


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.

42


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.



� 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 NRI’s 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 don’t

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


� The contact numbers and the email address of the Partnership Firm should be







letters.


� 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

43

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)











cheque.


taking a cheque: -


correctly.














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.

44

Private Limited & Limited Company: -


� 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


� The contact numbers and the email address of the Company should be







letters.


� 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.











cheque.


taking a cheque: -


correctly.




45











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 company’s 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): -


� 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







letters.


� 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.

46











cheque.


taking a cheque: -


correctly.














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-parcenor’s of HUF authorizing the Karta to act on behalf of

HUF.

� Copy of PAN card of HUF.

47

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 don’t 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.

48

� 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.

49

� 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 don’t 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 doesn’t 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 (Buyer’s) 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 don’t

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 didn’t 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 don’t 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 don’t 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.

52

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 doesn’t 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 don’t 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.

3C’s: -

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


Amrapali: -

20% of our payment once the buyer has paid booking amount.




20% of our payment once the buyer has paid 40% of the payment toward the apartment and


53

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 (Buyer’s) 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 doesn’t 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.

54

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

1 Login Date

The Date on which the sales was logged with the

developer

2 Customer Name

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.

3 Email ID

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

4 Mobile Number

Contact numbers of the clients, mention all the

contact numbers of the client.

5 Address Communication Address of the client

6 Project Name / Location Name of the project and location

7 Builder Name Name of the Builder

8 Type of Property Apartment, Plot, Villa etc

9 Size (in Sq. Feet / in Sq. Yds)

The size of the property for example - 1350 sq.ft.,

1850 sqft, 200 sq.yd. Plot, 350 sq.yd. Villa.

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

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.

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

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.

12 Parking (Total in Rs.)

Cost of the parking’s, in case of 2 parking mention

them separately. Parking needs to be mentioned

only if we get commission on the same.

13 Others (Total in Rs.)

Any other factor, if we get commission on the same

needs to be mentioned, mention the factor name.

14 Booking Amount

The amount paid by the client along with the

application form

15 Booking Ch. No. Cheque number through which booking amount is

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paid

16 Payment Plan The payment plan customer has opted for

17 Unit Number (If Available)

Unit No/Priority No. of the property sold, in case

both are not available then the reason for the same.

18 Commission (in % & Amount) Gross Commission earned from the deal

19 Commission Formula

Mention the Percentage of commission and the

factors on which we get the commission from the

builder.

20 Booking through Sub-Broker? Yes / No

21 Name of Sub-Broker

Name if some Sub broker has done booking

through us.

22

BSP Adjustment (% of BSP and

Amount)

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%.

23

Sub-Broker Commission /

Loyalty Discount (% of BSP and

Amount)

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.

24

Net Revenue (in Rupees)

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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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/-

25

Executive Name

The Name of the agent who has done the sale, in

case of sharing multiple name's and percentage of

sharing for each agent

26 Special Remarks Any special remark related to the transaction

Process of Recording a Sale – � An email in the above format needs to be sent to [email protected] with a

Cc to all the reporting managers and [email protected]. 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. It’s 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 NRI’s &

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 NRI’s/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.

57

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 don’t 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 employee’s 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 doesn’t 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 employee’s 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 mean-

� You 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 project’s to sell & why we sell a particular project.

� What project’s 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 Saturday’s & Sunday’s

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 Saturday’s & Sunday’s 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 employee’s 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 don’t 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 client’s 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.

59

� 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.

pt training module[1]

Documents

sundays newspaper

real estate

internet sites

real estate

application

subvention

safest payment

capital gain