Property deal is done in two ways
Since the Corona epidemic, the real estate sector in the country has seen rapid growth. Talking about the price, it is increasing every day. Still, people are buying their dream homes indiscriminately. For this the bank is providing them easy home loan. Due to having less capital than this, there is no hindrance in fulfilling the dream of buying a house. A big question here is that the people in the city who buy their flats by investing their lifetime earnings. What happens to their house when their lease is up? There are two ways in which houses are sold in the city. One on 99 year lease and the other as permanent ownership. If you are buying a house by choosing the first option, then you should know the rules that you are not going to be homeless after the lease ends.
Property deal is done in two ways
There are two types of property, leasehold and freehold. Freehold property is one on which no other person has any right. The buyer has full ownership rights forever and can change or sell it as per his choice. In leasehold property, a person has the right to own the property for a fixed period of time or on certain conditions. In some cities this also happens for 10 to 50 years. Generally, flats are sold on a lease of 99 years. After this period the ownership of the property goes back to the owner. Ancestral land comes in freehold category only.
What does the rule say?
In India, flats are generally sold on a lease of 99 years. This means that the buyer has the ownership rights of the flat only for 99 years. After a period of 99 years the ownership of the land reverts to the original owner. If the building collapses before the end of the lease period, then the number of yards of land on which the flat/tower was constructed will be reduced. It is divided in equal shares among all the flat owners on the basis of the current circle rate.
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What are the rules for converting lease hold into free hold?
If you want the lease hold property purchased by you to be converted into free hold, then you will have to follow the rules for this. Advocate Suresh Sharma explains that generally two methods are adopted to convert lease hold into free hold. First, many times the builder of that property gives the option to convert the property into free hold from time to time. He can do this only when he has the ownership rights of that property. If his property is already on lease then he cannot give you the option of free hold. The second option is that the government of the state where you have purchased the property gives the flat owners the option to convert the property into freehold during the lease hold period. In such a situation, if you want, you can convert your property into free hold.
Can leasehold property be sold?
This question comes in the mind of many people that if we buy a flat on a lease of 99 years and want to sell it after using it for 10 years, is it possible? Answering this question, Suresh Sharma says that if a person has bought a property on lease then he cannot sell it. He only has the right to transfer the remaining lease period. For that also he has to take permission from the authority. Any person can sell only freehold property forever. If you have a freehold property and you want to give it on lease to someone like a builder, then you have that right. After the end of that lease period, you get that property back.
Source: www.tv9hindi.com
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