What is “ Carpet area” ?

If you imagine a carpet had to be laid throughout the apartment, the area the carpet would cover is your carpet area. In technical terms, from your flat’s selling area if you subtract the common area andfaq2 wall thickness, you will get the carpet area.

What is “ Built–up area” ?

It is the area of your flat including the space occupied by the walls.  In case of the walls shared with another apartment, it is a custom to count only 50%.

What is “ Super built-up area ” ?

This includes the built up area of the flat together with a proportionate share of area under common spaces such as the lobby, lifts, stairs, etc. Common area is normally 15% to 25% of the built-up area.  Higher common area is not necessarily bad. Higher the common area, greater the amenities available within the building.

Why do builders charge separately Car Park?

Every car is allocated about 150 square feet of parking space in the stilt.  Though the car park do not have the interiors and expenses associated with a flat, we do incur additional expenses in concrete work, foundation, painting, etc.  For this reason, we charge a nominal sum for the car park area. Please note that this area is NOT included within the common area calculations.

What is meant by FSI ?

FSI stands for Floor Space Index.  This is the ratio between the total built up area  of the building calculated according to CMDA guidelines and the total plot extent.

What does Private terrace in a flat mean?

Some flats come with a private area which is open to sky and be used only by the occupants of that particular flat.  We call this area a private terrace.

What are the common areas referred to in a flat?

Common area include refer to areas that are not within an apartment and all occupants have access to. Examples are stairs, lobbies, lifts, open space around the building, the terrace of the building etc.

Who approves Plans?

The city development authorities approve plans.  In case of Chenna, The Chennai Metropolitan Development Authority (CMDA), approves building plans. CMDA has laid out elaborate rules and regulations that the building plans must comply with to be eligible for approval. CMDA has delegated the approval powers to Panchayat Union and Municipal unions in respect of property located within their jurisdiction.

What is registration cost?

Stamp duty, registration fee payable to the registration department, drafting and legal expenses are typically the components of registration cost. Since the right to charge stamp duty on transactions relating to immovable properties is in the State Government’s domain, the stamp duty and registration fee rates vary from state to state.  In Tamil Nadu, 8% stamp duty is payable on the market value of the property and additional 1% is payable towards registration fees.

Who should buy the stamp paper?

The stamp papers are required to be purchased in the name of either the purchaser or seller. Generally it is bought in the name of the purchaser since he bears the expenses of registration.

From where can we get information regarding the guide line value?

The Sub-Registrar of the area, in whose jurisdiction the property is located will provide you the guideline values.  The Tamil Nadu registration department has made available this information on internet.  Please visit www.tnreginet.net for more details.

Which is the area relevant for flat registration?

In Tamil Nadu, new flats are sold and registered in the name of the buyer before the construction is completed.  These cases are referred to as "FIRST OWNERSHIP".  These flats registered only for the land value (Undivided Share or UDS). So, stamp duty is payable only for UDS value. There will be a separate agreement for construction with the builder.  In case of SECOND SALE, the registration is done for the full value (both Land + Building) and the stamp duty is payable for the full value.

What is UDS?

UDS is the abbreviation for Undivided Share.  UDS of a flat can be calculated using the following formula

UDS = Total land area x individual Flat area ÷ Total saleable area of all flats.

NRI Details

Non Resident Indians (NRI ) can take loans for building a house or for buying a plot or house in the country.  Every bank follow the RBI guidelines to define NRI, "An Indian citizen who holds a valid Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI."

An NRI applicant is eligible to get a home loan ranging from a minimum of Rs 5 lakhs to a maximum of Rs 1 crore, based on the repayment capacity and the cost of the property, which although may vary by the priorities of the home loan provider. Interest rates for NRI loans do not vary much from that of the Indians living in this country.  But the loans will be sanctioned only for a shorter period. NRIs will get only 85% of cost of home as loan amount. The size of the loan depends upon the borrower's repayment capacity.  Up to 36 times of the gross monthly earnings of the applicant may be issued as loan.  However, there is a maximum limit. Calculation of eligibility is same as that of Indians living in the country. As the NRI is living far away, banks have to take greater care and therefore they will ask for more documents for ensuring their eligibility for issuing loans.  They include

Passport and Visa 

  • A copy of the appointment letter and contract from the company employing the applicant.

  • The labour card/identity card (translated in English and countersigned by the consulate) if the person is employed in the Middle East, Salary certificate (in English) specifying name, date of joining, designation and salary details.

  • Bank Statements for the last six months

Property Documents 

  • Original title deeds tracing the title of the property for a minimum period of the last 13 years.

  • Encumbrance Certificate for the last 13 years.

  • Agreement of sale /construction, if any.

  • Approved plan / license.ULC clearance / conversion order etc.

  • Receipts for having invested the margin money through normal banking channels from the Non-Resident ( External ) account in India and / or the Non-Resident ( Ordinary ) account in India.

  • Latest tax paid receipt.

  • The re-payment can be made as equated monthly Installments (EMI) through Non - Resident Ordinary (NRO) account or the Non Resident External (NRE) Account.