Hi Samkit, The property is not registered yet. As it is an under construction flat. So Initial agreement done on Jan 2023. Actual registration happen only during possession(expected sept 2025).

Ans: Hi,
There are lot of ambiguities in your query. Certain questions that are pertinent are as follows:

Was the Rs. 17 Lakhs fully paid in 2002?
How was the possesion given in 2003 without registration and it was done only in 2016?
What was the proportion of payment that was made by you individually and your husband?

The answers to this query would change based on inputs to the above questions. However, i will try to give a generic response to your queries

Indexed Cost of Rs. 17 Lakhs - Rs. 56,34,286
Indexed Cost of Rs. 1.65 Lakhs - Rs. 2,17,500
Total Indexed Cost - Rs. 58,51,786
Sale Consideration - Rs. 95 Lakhs
Long Term Capital Gain - Rs. 36,48,214

Most critical point here is that this capital gain would be taxed in the hands of your husband and not you as he has gifted the property to you without any monetary consideration. This is based on the clubbing provisions of the Income Tax Act

Ans: Understanding the Current Property Situation
Firstly, it's great that you are exploring the option of buying a ready-to-move flat. Greater Noida West is a developing area with significant potential. The property in question has been in possession for three years but hasn't been registered yet. The owner has possession and allotment letters, which is a positive aspect. However, some concerns need careful evaluation.

Evaluating the Legal and Financial Situation
Expired RERA Registration
The builder's RERA registration has expired, which raises a red flag. RERA registration is crucial as it provides transparency and protects buyers' interests. Without RERA, you may face legal uncertainties. It's essential to understand why the RERA registration expired and whether it will be renewed.

Builder's Financial Distress
The builder is in financial distress, and banks have defaulted on loans due to non-payment by some flat owners. This situation indicates potential financial instability. Ensure that the builder can resolve these issues and provide clear title ownership before proceeding.

Steps to Ensure a Safe Purchase
Registration in Owner's Name
You mentioned that if the current owner registers the property in their name first, banks might provide funding. This step is crucial for securing your investment. Make sure the registration process is completed before you proceed with the purchase.

Verification of Documents
Thoroughly verify all documents, including possession and allotment letters, and ensure they are authentic. Consult a legal expert to review the papers and confirm there are no hidden liabilities or legal issues associated with the property.

Financial Considerations
Bank Loan Approval
If the current owner registers the property in their name, securing a loan becomes feasible. However, confirm with multiple banks about their willingness to finance this property. Understand the terms and conditions clearly before committing.

Stamp Duty and Registration Costs
The seller's agent mentioned covering stamp duty and ensuring loan disbursement. Ensure you understand the implications of this arrangement. Verify that all costs, including stamp duty and registration, are transparently included in the purchase price.

Risks and Benefits Analysis
Potential Risks
Legal Uncertainties: Expired RERA and builder's financial issues can lead to legal complications.

Financial Instability: Builder's default with banks could impact property value and future transactions.

Loan Approval: Securing a loan may be challenging due to the current financial status of the builder.

Potential Benefits
Ready-to-Move: The property is ready to occupy, eliminating the risks associated with under-construction properties.

Location Advantage: Greater Noida West is a growing area, which could lead to property value appreciation over time.

Immediate Possession: You can move in immediately upon registration, avoiding delays common with new constructions.

Key Recommendations
Legal and Financial Due Diligence
Engage a Certified Financial Planner and a legal expert to conduct thorough due diligence. They will ensure all legal and financial aspects are transparent and secure.

Confirm Builder's Resolution Plan
Ask the builder for a detailed plan on resolving financial issues and renewing RERA registration. This information is critical for your decision-making.

Secure Bank Loan Pre-Approval
Before proceeding, get a pre-approval for a loan from your preferred bank. This step ensures that financing will not be an issue after the current owner registers the property.

Conclusion
Purchasing a ready-to-move flat in Greater Noida West can be a sound decision if all legal and financial issues are resolved. Ensure the current owner registers the property in their name first. Conduct thorough legal and financial due diligence with professional assistance. This approach will safeguard your investment and provide peace of mind.

By taking these steps, you can confidently proceed with your property purchase and enjoy the benefits of your new home in Greater Noida West.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

Ans: The amount paid within stipulated period under agreement, through banking channels with receipts, shall be available for exemption u/s 54, even if possession is delayed.
Most welcome for any further clarifications. Thanks.