What You Should Know About Land Contracts
As the number of corporate executives and professionals are increasing day by day, the search for property on rent has also reached at the summit.
by sanjay cosmossalesforce Thursday, April 21, 2011
Over the past few years, Gurgaon has experienced a sudden increase in the demand for residential as well as commercial properties and the credit for this boom in the real estate sector goes to the booming economies of IT/ITES sector.As the number of corporate executives and professionals are increasing day by day, the search for property on rent has also reached at the summit. The residential property in Gurgaon is vibrant and positive in nature and Haryana is popularly known for its commercial capital and the software industries. The increased foreign direct investment, large influx of quality manpower and low interest rates has lead to an increase in the developmental activities like corporate retail space, residential and commercial space.
The real estate sector in Gurgaon caters to the young students, workforce and diplomats in the country.Looking at the present situation, it can be judged that in the forth coming years, the expected demand for residential and commercial property shall increase at a faster pace and builders are already planning to prepare more than 10,000 units in luxury segment only. Gurgaon property has been showering its blessing upon the developers and is expected that the value of the properties in Gurgaon is going to increase 12 to 15 % every year.
Huge developers, like DLF, MGF, Emaar, Unitech, Vatika limited, Parsnath, and Tata Housing are all planning luxury apartments in the areas like Golf Course Road, Sohna Road, Central Park, and others. These apartments would be exclusively priced and would target only premium buyers. The high price of these apartments would be compensatory for the facilities and luxuries that would be provided here. These would comprise of features like 4-5 bedrooms, luxury flooring, central air conditioner, state-of-the-art kitchens and bathrooms, gyms, spas, security, shops, in-built café, and many more...There are few things to be taken care of while entering into contract for land, like contract papers, transfer of ownership, conversion of land use (CLU), modes of payment and installments, etc….. Let us first understand the concept of Land Contract.
A land contract is a contract between the buyer and the private seller of a property, wherein the seller holds the title or deed to the property until all the agreed payments have been made in full. As the laws governing land contracts can vary from state to state, it is crucial that the governing laws in the concerned state should be consulted to understand the particular rules that control a specific scenario. The property at issue within a land contract may be improved or unimproved, vacant or home, or a commercial building.
The modes of payment also vary in accordance with the requirements and convenience. A down payment is usually made and then equal monthly installments are paid until the property is paid for or until a balloon payment may be required. A balloon payment is a lump sum amount of money paid that is due at a specified time, in this case, at the end of the course of monthly payments.The title to the property gets transferred upon the full payment, delivery and acceptance of the deed. In case of transfer to the spouse Quit Claim Deeds are used since the spouse who previously owned the property probably already has some sort of warranty deed, so further warranties do not need to be made to new spouse.
Conversion of land use should be approved by the respestive authorities.Everytime the land owner uses his/her land for any purpose and you are intendind to buy the land, make sure the owner has the permission from the respective aithorities to use the land for the same purpose that he is using it for. It is illegal for any developer to commence any construction activity in an area zoned for agricultural use.
sanjay cosmos is well known author who has written article on gurgaon property, residential flats gurgaon, and also give detail information in Investment on Property in Delhi NCR.
About Cosmos Sales Force Cosmos Sales Force is a unique Indian -headquarted company, leading the industry in the provision of customer communication solutions. Through the strategic use of different communication mediums,including voice and non-voice
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