Q : What is the meaning of Leasehold and Freehold properties?

A : Leasehold properties: A property (plot/ built up) in which perpetual leasehold have been granted by the title paramount in favour of the lessee. The title paramount i.e. president of India in these kinds of properties acts through DDA, L & DO. Leasehold properties are not freely transferable. depending upon the covenants pf. the lease deed prior permission of the lessor (DDA/LDO) is required to transfer the property. One is required to pay charges such as 50 & of the unearned increase and conveyance.

A form of property interest in which the holder of the interest has the right to use or occupy, but not to sell or transfer the property. The holder of a Leasehold property has the right to build on and to occupy land for a specified lease term.

Freehold properties: Property in which ownership is for an indeterminate length of time. In free-hold property the title paramount has conveyed the property in favour of the purchaser by conveyance/ sale deed with no restriction on the right of the holder of the property to further transfer the property. Record of ownership of the freehold property can be ascertained from the office of the sub-registrar. It can be transferred by registration of sale deed. Freehold estates include freehold in deed, a fee simple estate; freehold in law, an inheritable estate; and determinable freeholds, a life estate.

Q : What is 'Maintenance Charge' in renting of a building for a commercial purpose?

A : Maintenance charge is that amount of paid to the society to which the property belongs to, towards the maintenance of the property which includes the running cost of AC & D.G. Sets, Security, Landscaping, etc.

Q : How and after what duration escalation in rent possible?

A : As per the market norms, escalation in rent depends upon the mutual consent of both the parties (the leaser & the lessee). Normally it is 15 to 20% increase after every 3 years or as per the contract between the parties involved.

Q : What are the benefits of getting a leasehold property converted to a freehold property?

A : There are a number of advantages in holding a free-hold property in comparison to that of a leased property. Some such benefits are :

  1. The property holder becomes a full-fledged owner only by getting the sale deed of the property after getting it registered.
  2. The property gets more marketable
  3. The property can be sold, mortgaged or kept for standing security

Q : What is the minimum period to rent a residential property and commercial property?

A : The minimum time period to rent a residential property is 12 months and commercial property is 18 months.

Q : How much space in minimum is required to set up a 200 seater international BPO center in NCR?

A : The minimum space require to establish a 200 seater International Call center is 15,000 Sq.ft to 17,000 Sq.ft.

Q : What important aspects one should keep in mind before purchasing of a property which is registered on the name of a company? 

A : While purchasing any property, we should verify from the Registrar of Companies that the property is not mortgaged or otherwise collateral security against any loan etc.