General Info:

1) Can there be a Sale/ Purchase of real estate through power of attorney?

Yes, real estate can be purchased and sold on behalf of the owner through general, specific Power of Attorney, but there are certain exception:

• Where buildings, Housings and commercial property are constructed and sold by government organization.

2) What is Power of Attorney?

The power one person or legal entity grants to another to act on behalf of the person granting authority. The document granting such power normally specifies exactly how much power the attorney-in-fact (recipient of the power of attorney) will have.


3) Can corporate firm/houses open their offices in residential areas ?

No, the practice of opening offices in residential areas is illegal. But in the usual course of business service based industries are allowed to open their offices in such residential properties. But any complaint by the owners will perforce them to vacate it.


4). If the lease does not contain any clause for escalation of rent then can the lease amount on renewal be escalated ?

It is always advisable to include the rent escalation in the lease deed which is more than 1 year, to avoid any dispute in future. However there is a provision in the rent control act that rent will increase 10% after every 3 years.


5) What is the difference between leasehold and freehold properties?

Freehold Property: The owner of the Property has good title over the property and he can sell the property to any one as and at any time.

Leasehold Property: The owner of the property does not have a good title in regards to selling of the set property to the third party, as the lease is between the lessee and the lessor (President of India/ Government agencies like DDA, LDO etc).


6) What are the benefits of getting a leasehold property converted to a freehold property ?

The benefits are:

• The person can become a full- fledged owner by getting the sale deed of the property after getting it registered.


• The property would have better marketability.


• The property can be sold, mortgaged or kept as an asset for security in future.

7)What % of the plot has to be kept aside for as back space and front space ?

The % area set aside for construction purposes differs with the size of the plot and locality, this should be checked with the concerned development authority..


8) How can gift of immovable property be made?

A gift of immovable property must be made by registered deed irrespective of its value. It should be attested by two persons.