What is meant by valuation of property?

The valuation process evaluates the market value of the property. Demand and supply forces operating in the market, as well as other factors like type of property, quality of construction, its location, the local infrastructure available, maintenance, are all taken into consideration before the market value is decided.

Which all bank are going to fund the loans for the project?

Axis Bank, SBI, Citibank, Corporation Bank, ING Vysya Bank, Canara Bank, HDFC bank, Deutsche bank, has approved the project. Further if there are any customers who want to go with a particular bank we shall get the project approved by the bank.

Who owns the land for this site? How will you assure your customer that there is no dispute on this land?
Ans: We are the absolute owners of the site. The sale deed and all the necessary documents are with us. It can be given to your lawyer for their expert opinion. We have taken all the necessary precautions to make sure that the land is free from any litigation or any disputes. We have checked the records and have taken the necessary documents from the competent authorities.

How will you assure your customer that the construction and the approved plan match?
We will sale only what is approved. There would be penthouses which would have attached terraces.Any customer may inspect the approved plan and accordingly take up the flat. The necessary setbacks will be maintained from day one. We have no intention of doing any kind of violations.

Some months back there were some issues with new land registrations in Bangalore. Have we taken care that we do not hit the issues encountered in those cases.
Definitely. We have a clear title and the zoning regulation has been taken care of. We do not fall under the green belt or the agricultural zone. The reason why our property is a little away is because we skipped the green belt area. WE have got the necessary documents for the same.

What is the delivery time and what is the assurance for the same?
Regarding the completion of the project we are having a team of people who have executed in excess of 10 Lac sqft of residential space and coupled that with our planning and focus we would be able to complete it on time. We had initially set a delivery time of July 2008, which has now been revised to April 2008. The work progress at the site is very good and way ahead of our schedule

How does property valuation help?
Typically, if a real estate agent is asked to judge the value of a piece of property, he would do so based on information of recent sales or purchases of similar properties in that area.

Though this may give a fair idea of the property’s market value, an official property valuation would carry more weight. E.g. if you need to use this piece of property as a security against a loan, the bank’s loan approval process would be faster and smoother if the property is certified by an official valuer. Many banks now insist on valuation certificates before issuing loans using properties as security. The value thus certified may also have chances of getting a higher amount of loan sanctioned.

Another benefit of official valuation is that it is a useful negotiating tool when selling the property.

Such certification also becomes essential in situations where the correct value of the property has a legal bearing—such as, a will statement, insurance papers, business balance sheets etc.

What is the meaning of a property’s market value? How is its stamp duty decided?
The price that a property can command in the open market is known as its market value. Stamp duty is based on the market value or the agreement value of the property, whichever is greater.

What does the term ‘Leasehold Property’ mean?

When a piece of property is given or ‘leased’ to an individual (known as the ‘Lessee’) for a stipulated period of time, by the owner of the property (known as the ‘Lessor’), the property is referred to as Leasehold Property. A certain amount is fixed by the Lessor to be paid as lease premium and annual lease. The land ownership rights remain with the Lessor. Transfer of property requires prior permission.

What does the term ‘Freehold Property’ mean?
When ownership rights for a piece of property are given to the purchaser for a price, that property is referred to as Freehold Property. Unlike in the case of leasehold property, no annual lease charges need to be paid and the freehold property can be registered and / or transferred in part(s).

Are there any benefits in converting a leasehold property to a freehold one?

There are several benefits: if you convert the property to a freehold property, you become a full-fledged owner by getting the sale deed and having it registered. A freehold property has better marketability and can be sold, mortgaged or kept for standing security, which cannot be done with leasehold property.

Are there any income tax considerations while transferring newly acquired property?

If the transfer takes place within three years of purchase, the income tax exemption under Section 54F of the Income Tax Act does not hold good.

What constitutes conclusion of sale of a property?

An agreement of sale, coupled with actual possession of the property would be considered as a conclusion of the sale. Usually, the entire amount is paid at the time of handing over possession.

We are determined to make BVL one of the valuable brands in the country and thereby stand example to the core values of the company – commitment and care.