The Foreign Exchange Management Act (FEMA) of 1999, governs the laws pertaining to foreign exchange for the purpose of facilitating external trade and payments and to regulate the foreign exchange market in India.
A freehold property is one, where the owner/ society/ resident welfare association owns the building and the land that it stands on outright, in perpetuity. A freehold land is generally bought through an auction or lottery. The completed project, thus, will include the cost of land incorporated in the final cost of the units.
A gift deed is a legal document that describes the voluntary transfer of a property from the donor to the donee without any exchange of money. Section 122 of the Transfer of Property Act, 1882, governs the transfer immovable property through a gift deed. A gift deed has to be registered, to make it valid.
A greenfield project is one, where the land on which the project is developed, has never been used and there is no need to rebuild or demolish an existing structure.
In some southern states in India, the area of a plot is often measured in terms of ‘grounds’, where one ground is approximately equal to 2,400 sq ft.
High street (also known as ‘main street’) refers to the primary business street of a town. This is the usually the focal region for retailers, banks, shops and other businesses.
Holding period refers to the time for which a property was held by the owner – from its acquisition to its sale. However, there are certain ambiguities when it comes to calculating the holding period for an under-construction property – whether it shall be calculated from the date on which the property was booked, or its possession date, or the date of allotment.
HVAC refers to the heating, ventilation and air conditioning system installed in a building, to regulate temperature. This includes air conditioning plants, chillers and ducting systems, which ensure the uniform transfer of the cold or hot air, as the case may be throughout the building.
The Indexation benefit is available for long-term capital gains on a property. This benefit allows the cost of acquisition of the property to be adjusted, considering the cost of inflation. The indexed cost of acquisition is calculated with the help of the Cost Inflation Index, which is notified by the income tax department every year.
Inheritance is the process of passing on of the title, debt, rights and obligations in a property, from its owner to others, upon the death of the owner. Inheritance laws in India vary, according to one’s religion – for example, the Hindu Succession Act for Hindus, the Islamic Law on Succession for Muslims, or the Indian Succession Act for Parsis and Christians.
Intestate means that an individual has died without leaving behind a will. There are various laws that govern the succession of a property for a person who dies intestate, and for those who die after making a will.
Joint ownership, or co-ownership, refers to a scenario where two or more persons hold the title to the same property.
A karta in a Hindu joint family, is the manager of the family and the properties owned by the family.
