Q ) What is meant by valuation of property?
A ) Property valuation evaluates the market value of the property. Factors like 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 of the property is decided.
Q ) In what way does the property valuation help?
A ) An official property valuation gives you a good idea of the property’s market value. For instance, if you are looking to use the 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. Today many banks insist on valuation certificates before issuing loans using properties as security. The value thus certified by an official valuer will also have chances of getting a higher amount of loan sanctioned. Apart from this, an official valuation also works as a useful negotiating tool when selling the property OR in case of a will statement, insurance papers, business Balance sheets etc.
Q ) Explain what is meant by a property’s market value? How is its stamp duty decided?
A ) The price that a property can command in the open market is known as its market value WHILE Stamp duty is based on the market value or the agreement value of the property, whichever is greater.
Q ) Is there any income tax considerations while transferring newly acquired property?
A ) Suppose 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.
Q ) What constitutes conclusion of sale of a property?
A ) A Property Sale happens when an agreement of sale, coupled with actual possession of the property occurs. Normally the whole property sale amount is paid at the time of handing over possession.
Q ) What charges need to be paid while gifting property?
A ) A Gift Deed needs to be made by a lawyer when a gift of property is made. Stamp duty on the market value of the property also needs to be paid, as well as the necessary registration charges.