Can you please explain what are the various ownership types?

Q: Please inform if one has to be careful of not purchasing flat for some ownership type

Parikshit padture,

8th September 2014

Buying property in Navi Mumbai

co-operative housing society

cooperative society

ownership type

sole proprietorship

partnership

cidco flats

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Replies (5)

Hello All,

1. Is Indiabulls golfcity phase 1 and 2 approved? Have they got CC? As far as I know, Indiabulls have not got CC.
2. Is Indiabulls golfcity phase 1 and 2 projects are freehold or under leasehold (66 / 99 years)?
Regards,
Mangesh

Mangesh Nadgauda,

13th September 2014

Comment

Thanks Mr. Shantanu for responding to my query.
Actually my query is related to ownership type of a property- Flat and not business in General.
Specific doubt is about the leasehold type of ownership like in case of cidco flats where the agreement is for 66 yrs. I would like to know what happens when 66 yrs are over. This might happen for purchase of an old flat which has already completed say 15-20 yrs.

Parikshit padture,

9th September 2014

Comment

Well,
After 66 years flat owners must renew the lease by paying a heavy premium to CIDCO. With the ownership resting with Cidco, it also means that flat owners can't go for redevelopment without the agency's permission and have to pay it for any paperwork involved therein.

Shantanu Kumar, Mumbai

9th September 2014

Similarly,
If you are going to buy a leasehold property, a few points need to be kept in mind. Make sure that the ground rent has been paid up to date. Buying a leasehold property has a few disadvantages. You can’t take a loan on a leasehold property as you can in case of a freehold property.

Shantanu Kumar, Mumbai

9th September 2014

Thanks Mr. Shantanu for providing good info.
Which document shall I ask to the seller to check that the ground rent has been paid up to date. Is it same as property tax.

Parikshit padture,

9th September 2014

@ Shantanu,
But for a new business i would suggest either a sole proprietorship or if more than one owner involved partnership will be the best options.
A sole proprietorship is a single person business that is not registered with the state like a limited liability company (LLC) or corporation. You don't have to do anything different or file any papers to organize a sole proprietorship.
Legally, a sole proprietorship is inseparable from its owner -- the business and the owner are one and the same.
Similarly a partnership is simply a business run by two or more people that hasn't filed papers to become a corporation or a LLC. You don't have to file any paperwork to form a partnership. It start as soon as you start a business with another person. In a sole proprietorship, the partnership's owners pay taxes on their shares of the business income on their personal tax returns and they are each personally liable for the entire business debts and claims.

Praveen Modi, Mumbai

9th September 2014

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where i should use 4 letter confirmation code.

Ramesh N,

9th September 2014

Comment

Which 4 letter confirmation code are you talking about?

Shantanu Kumar, Mumbai

9th September 2014

Hi Parikshit,
It depends on you how you want to structure your business, You will need to know what your choices are. Here's a brief description on the most common ways to manage a business:
1) sole proprietorship,
2) Limited partnership,
3) partnership,
4) Limited liability company (LLC),
5) corporation (for-profit),
6) cooperative, and
7) nonprofit corporation (not-for-profit)

Shantanu Kumar, Mumbai

9th September 2014

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