Home Sales see 134% Jump in Top Cities

The Coronavirus Pandemic, being an unprecedented event, brought with a lot of chaos. Everyone across the globe suffered due to the impact the pandemic had on every sphere of life. The unfamiliarity brought with a lot of uncertainty that hindered the overall routine life of everyone. The pandemic also lead to the imposition of a nation-wide lockdown in India which hindered with the growth or even normal functioning of every sector. Real Estate has been among the worst hit sectors due to the decline in overall home sales. Initially the sector faced a lot of loss; however, there has been a turning point that has been witnessed.

Normality is being restored and with that all the sectors are making a fresh and progressive start. The post Covid world, gradually falling into place is giving way to new opportunities for all the developers. The top real estate developers like SBP Group is gaining a lot of momentum in the meantime due to their credible image and consumers trust earned over time. Even though it cannot be said that all the states are powering through the situation equally well but the top cities in India sure are emerging despite the unfortunate circumstances with a beacon of hope for all the others.

Housing Sector is paving a way towards a strong recovery as the home sales in the recent quarter has seen an enormous and evident increase of up to 134 percent. One of the major reasons behind this increase is the decline that was faced by the sector. The decline lead to an all time low in the property rates which made it easier for people to make investments. Many people saw this as an opportunity to buy a home of their own or even invest in a asset which will be more beneficial and rewarding compared to the returns from stocks.

The major reasons for the same are also the Record low home loan rates, Discounts as well as Incentives being offered by Developers. Lower taxes are also an aspect worth considering while acknowledging the positive shift in the consumer behaviour.

Developers are making the most of this opportunity by luring in consumers with amazing offers and additional benefits, meanwhile, the Homebuyers are making optimum use of this to invest in a home of their own.

Considering the Pandemic, many people have realized the value of possessing a home as it provides a sense of security in times of uncertainty. The potential buyers who were looking for homes right before the lockdown are also making their long-awaited investments in the present time. Developers are also taking an initiative by providing lucrative payment plans etc.

The Indian Government has always introduced many policies and reforms to help the Real Estate Sector overcome the hurdles it has been faced with. Home Loans have been made easily accessible to people who wish to avail it. The rate of interest has also been relaxed to benefit the Banks as well as increase the inflow of money.

In Addition to all this, the advent of the Festive season has enormously impacted consumer behaviour as most people wish to make big purchases as well as investments during the auspicious season. The festive season also brings with it a lot of festive offers by the Developers, over and above the already existing offers. Major Indian festivals like Navratri, Dhanteras & Diwali are considered the best, in terms of auspiciousness, and the investments made during this time are believed to bring in a lot of fortune and positivity into the lives of the people.

The upsurge has mostly been witnessed in the Top seven cities considered best for living and in terms of employment opportunities. The Most prominent home sales have been made in Chennai, Hyderabad, Pune, Kolkata, Bangalore & Mumbai, etc. During normal times, investing in Property in these cities is quite difficult as the value and price of a property are quite high. The home sales price slashes have encouraged a lot of people who have always wanted to own property in these cities to finally be able to afford them.

In conclusion, despite the many challenges the real estate sector has faced due to the Pandemic, it has redeemed itself and emerged stronger than ever. It has been with the collective effort of the Developers like SBP Group who have taken the initiative to recommence the high inflow of investments. Additionally, the reforms extended by the Government to benefit the Developers as well as the Homebuyers have always played a role in the overall Growth.

If you are willing to Invest in Real Estate, right now is one of the best times to consider it without a doubt. If you are looking to invest in property in Punjab, you must take SBP Group into consideration. The Group offers affordable luxury housing options that are suited for everyone regardless of their preferences as the SBP’s Projects have it all.

In Case you have any Queries, Visit Our Website or Contact Us Via Our Social Media Handles.

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Difference Between Agreement of Sale and Sale Deed

There are various terms that are used in real estate and main confuse the homebuyer. We understand that when purchasing or selling immovable property, persons enter into a contract with the seller. It must be noted, however, that the form and format of the agreement can vary. In general, there are two kinds of contracts, an agreement of sale and a Sale Deed. The names of both contracts may sound very similar, so one tends to believe that they mean one thing or the same thing. Let us understand the concept of both.

What is an agreement of sale?

The Transfer of Property Act, 1882, which governs matters relating to the sale and transfer of property, describes the sale contract or an agreement for sale as follows:

According to Section 54 “A contract for the sale of immovable property, is a contract that a sale of such property shall take place on the terms settled between the parties” Furthermore, Section 54 specifies that “it doesn’t, of itself, create any interest in or charge on such properties.”

In simple words, an agreement of sale is a deal to sell a property in the future. The terms and conditions on which the property in question will be transferred are set down in this agreement.

An agreement for sale consists of the following terms:

• Proposal to purchase and agreement to sell in future
• Detailed property description
• Disclaimer that the property is free from legal obligations
• Value of the property including payment details
• Delivery of the original documents on the final payment
• Execution of sale deed and registration of the same if the titles are found good
• Method of property delivery
• Payment reimbursement in the event of improper titles
• Action course for non-completion of sale on the part of the seller
• Loss of payment in advance if the buyer fails to complete the transaction
• Remedy if legal issues besiege the property
• Transfer of tax-related certificates
• All other matters related to the proposed sale

Importance of agreement for sale:

In view of several factors, signing an agreement of sale becomes essential. Firstly, this is legal documentation of the consumer and seller entering into an agreement on the basis of which, in the event of a disagreement, the potential course of action will be determined. In addition, if you apply for a home loan, the bank will not approve your application until you sign an agreement of sale.

What is a sale deed?

A sale deed is a legal document proving that the seller has transferred the buyer absolute ownership of the property. The rights and interests in real estate are obtained by the new owner via this document. The deed should, however, be drawn only after the clear resolution of all the contractual terms of the sale agreement. In addition, it is compulsory under the Registration Act, 1908, to register a sale deed at the registrar’s office.

A sale deed usually includes the following details:

• Details of the buyers and sellers (name, age, and addresses)
• Property description (total area, details of construction, the exact address and surroundings)
• Transfer of titles
• The clause of sale consideration
• References to the agreement of sale and the price details
• Transfer of rights, interests, and claim of the property to the new buyer
• The time frame when the property title will be actually passed to the buyer.
• The actual date of delivery of possession.
• A clause that the previous owner does not hold any authority on the facilities, privileges, and easements of the property
• Compensation to the purchaser for losses arising out of the negligence of the seller or heirs of the asset
• The authority of the vendor to sell the property.

Key Differences

• Transfer

Agreement for sale: It implies the future transfer of property

Sale deed: It signifies an immediate transfer of the property titles

• Risk involved

Agreement for sale: Unless the property is sold in the future, risk/liabilities remain with the seller

Sale deed: Risk is shifted immediately to the new buyer

• Contract

Agreement for sale: It is an executory contract. An executory agreement is one which has not been fully implemented

Sale deed: It is an executed contract

• Violation

Agreement for sale: Breach of sale may result in a suit for damages

Sale deed: Sale breach results in a legal complaint as well as monetary compensation for damages

• Registration

Agreement for sale: It is not mandatory to register the agreement of sale. Nevertheless, requirements can vary across states.

Sale deed: Registration of a sales deed is mandatory.

From a legal perspective, to arrive at a hassle-free closure, it is important to understand the terminologies listed above. A lack of knowledge can not only lead you to legal issues but may also put your investment at risk.

For example, if you purchased a house under the agreement of sale and failed to execute a sale deed, then the right to property will stay with the developer even though you get hold of the property possession. Therefore, it is imperative to create a sales deed and have it registered to prevent certain circumstances. Only a stamped and licensed deed ensures the buyer's possession of the legitimate property.

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Property Terms to Know Before Buying a Property

Purchasing your own home is a dream of many people. It is one of the essentials of good living. It is a massive financial decision and one needs to make sure that they invest in a good house. As much as it is important to know the location of the property, the developer whose project you are investing in, the inspection of property and amenities provided along with it, it is also important to know basic terminologies being used while making a purchase decision.

Figures and terminology can be misleading and even deceiving occasionally. To make an informed decision, homebuyers need to understand and get acquainted with the property jargon used by developers. Until you begin the home buying process, getting a basic understanding of significant property terms will make the process easier now and may save you a lot in the future.

If you are new to the real estate market and want to buy a home but aren’t familiar with property terms and concepts related to property, you don’t need to worry about it as SBP Group is here to help you understand all the essentials terminologies before you make any buying decision.

You must have heard about different types of areas while looking for a property such as a carpet area or built-up area etc. These areas usually indicate the space available in the house. Following are the detail information about different types of areas to clear out your confusions:

• Carpet area: This is the actual floor area measured from the walls’ inner faces. It means the portion of an apartment that can be carpeted and the balconies included.
• Built-up area: This refers to a flat’s total area. The carpet area, the room occupied by the thickness of the walls and ducts, is included. It is usually 10-15 percent greater than the area of the carpet.
• Super built-up area: This is the complete ‘saleable’ area, adding markup for open spaces like lifts, staircases, entrance lobby, halls, etc. over the built-up area. It includes all common facilities not specifically charged to the buyer (excluding parking space) but proportionately divided between all the flats. For the super built-up city, the unit price per square foot is paid.

Understanding these property terms for areas is important to know exactly how much area is available for you to stay in. Also, remember that developers are obligated to include/report the carpet area of all units in their brochures and websites. Paying attention to the space offered to you for a living is very important and helps you in making a purchase decision.

Besides that, as we know that buying a property involves a big financial decision and most people rely on home loans to purchase their desired property, you also need to understand financial terms involves with real estate:

• The Debt-to-Income Ratio (DTI) is a calculation of the debt repayment capacity of a borrower relative to his or her gross monthly income. In simple terms, the DTI is the gross percentage of all monthly debt payments, divided by the gross monthly revenue. It is a method used by financial institutions and lenders (including mortgage lenders) to estimate the ability of a borrower to make monthly loan payments and repay the total amount.
• Loan to value ratio or LTV, provided the market value of your land, is a ratio of the amount of loan that you will receive. Generally, the LTV for a property loan varies from 40 percent to 75 percent of the total value of your property. LTV for a Property Loan tells you the maximum amount of funding that you can get depending on the asset you are guaranteeing. The property is measured here on variables such as its kind: commercial or residential, and occupancy.
• Ready reckoner rate – This is the minimum amount at which a house has to be registered in the event of its transfer, it is also known as the circle rate. The declared transaction value or the minimum rate set by the government, whichever is higher, must be registered for a house. The stamp duty is measured as a percentage of such amount.

Knowing these financial terms will help you when you are applying for a  loan as well as when you are finally making the purchase.

Another term which you need to know is “Inspection”, once you have decided on a property you want to invest in you need to make a home inspection. It is a visual and mechanical inspection of a home to detect defects and determine the condition of the home.

Once you have selected a house you want to buy, you need to make sure that every document related or required for purchase is with you. Some of the essential documents you should know about are as follows:

• No objection certificate: provided by the local authority stating that the building plans are in order and comply with the guidelines.
• Encumbrance certificate: provided by the Registrar of Assurances or the Sub-Registrar ‘s Office after proper verification of the relevant documents certifying that the property is free of all debts.
• Occupancy certificate: issued to the builder or owner of a house by the local municipal body indicating that it is suitable for occupancy, after ensuring that the building complies with all permissible building plans and local laws.
• Sale agreement: Contains a commitment to transfer the properties in the future, subject to certain terms and conditions. In itself, an agreement to sell does not establish any ownership interest in the property. Therefore, without a conveyance deed, the acquisition of a property is not complete.
• Sale deed/conveyance deed: A contract in which the rights of the property are transferred to the buyer by the seller, providing the buyer with full and unquestioned possession of the property.

For every homebuyer, it is essential to know about these documents and to verify whether the developers are complying with all the laws or not. Besides that, if you are interested in purchasing a property you need to know all these property terms and abbreviations used for it so that you can invest in your dream home without any worry.

For more real estate related enquiry, you can connect with us at our websites and social media networks.

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