Q: Can Non-Nri's and Non Indian Citizens buy and sell real estate in India?

A: Yes. As per the Indian Regulations, if you are not of Indian descent and you wish to acquire residential property, you may:

i) apply to the Reserve Bank of India (RBI) for permission;

or

ii) incorporate a company in India and thereafter buy the property in the name of the Indian Company and for the business activity of that company.

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Why? Because our Bangalore properties combine natural beauty with rapidly rising real estate prices (due to the proximity of the new Bangalore airport, scheduled to open in 2008) make your investment into luxury housing in India, one of the best investments in India. The airport, with its 500-acre commercial city and anticipated six million travelers, is expected to become a major connecting hub serving numerous destinations around the globe. Residents at Royal Garden Villas & Resort, situated just 14 miles from the new airport, will see their luxury villa properties rapidly escalate in value as Fortune 500 and IT companies relocate to north Bangalore. The area has already experienced accelerated growth with Bangalore property values rising as much as 70% in the last 12 months and prices doubling every three years. The Bangalore property market is one of the world's real estate hot spots, ranking only behind Tokyo. Buying Bangalore properties in the area surrounding the Bangalore airport, with its great climate, location and low property prices, is attracting thousands of investors every month. The Indian Census Bureau predicts Bangalore will have three million new residents by 2012, up from its present six million population.

2) What makes Royal Garden Villas & Resort so special?

Royal Garden Resort & Villas at Tuscany Hills is a residential resort like no other. It has been conceived to fulfill your dreams of an ideal international community with a wonderful array of amenities to suit everyone's interests. In addition to spacious and luxuriously appointed apartments and villas, we offer a five-star hotel, chateau and winery, an Old World village square with a selection of international shops, lighted tennis courts, an equestrian center, and Hollibrook Farm, an organic farm with fruit orchards. Our property will also feature a world-class spa, luxurious Pool Pavilion, Racquet Club, state-of-the-art Fitness Center, walking/jogging trails, shuttle service, supermarket, office space with a business center and high-speed Internet access, manned security, concierge service and a variety of international restaurants and pubs. A subsequent phase will feature a 18-hole championship Jack Nicklaus Signature Golf Course surrounded by luxury villas, expected to be launched in 2007.

3) What company is behind this project?

Royal Indian Raj International Corporation (RIRIC), an international real estate developer with offices in Vancouver, London, New York and Bangalore India, combines a commitment to the highest possible standards in building and design with a unique knowledge of India's past, present and future. The company is focused on building a New India by incorporating world-class technologies into the country's select infrastructure areas.

4) Who will build Royal Garden Villas & Resort?

Planet 3 Studios, winners of the Young Designer 2005 Award by Indian Architect and Builder Magazine, has been awarded the contract to design the project. We are partnered with international firms for the construction of Royal Garden Villas & Resort. Phase I is set on 17 pristine acres. Phases II and III, which will enlarge Royal Garden Villas to 400+ acres. Groundbreaking is expected in July/Aug 2008. Each luxury villa will enjoy expansive floor plans, balconies and terraces, imported marble flooring, granite countertops, and ceramic tiles.

5) Is buying a home at Royal Garden Villas a good investment?

According to the McKinsey Report, Bangalore is increasing from its present six million population to nine million by 2011. In addition, Bangalore has now been ranked No. 2 on the world's real estate chart, trailing only Tokyo as the planet's hottest real estate market. This year, 9.3 million sq. ft. of commercial space is expected to be absorbed in Bangalore. The suburbs have seen a lot of real estate developments over the last few years, particularly east of Bangalore, in areas like Whitefield, Outer Ring Road, Sarjapur Road etc. However, construction of the new international airport has begun at Devanahalli and real estate developers have started taking a fresh look at the northern parts of the city. Presently the city has expanded up to Jakkur and Yelahanka in the northern side. Bangalore land values are expected to continue to increase 30%-40% per year. No one can predict exactly what the Bangalore properties market is likely to do, but the market is still rising so anything you buy now is likely to double in value in three to four years.

6) How will the new airport impact Royal Garden Villas?

When the Bangalore airport becomes operational in 2008, there will be a rapid urbanization of the Devanahalli area and north Bangalore. The old airport will be closed in the south. Corporations like Infosys and Fidelity are expected to build new campuses since they have already Bangalore land. Wipro and other corporations are said to be on the lookout for suitable land parcels for future development. Surveys by Chesterton Meghraj indicate that some of the five-star hotel chains are looking to locate their hotels here in the future. The Oberoi Hotel group is said to own some land in the Devanahalli area and other hotel groups are contemplating hotels, which can be launched when the airport becomes operational. Six million people are expected to pass through the Bangalore airport every year. Many will be business people who will stay at our five-star hotel. Many others will be residents who enjoy the short commute to our luxury Bangalore properties.

7) Why should I live north of Bangalore?

There are many reasons why, but let's start with congestion and smog. Bangalore is one of India's fastest growing metropolitan cities, but its toxic air is choking the lungs of its children. Seven to eight hundred thousand lakh children (over 50%) suffer from coughing, wheezing and other respiratory ailments due to the alarming air pollution levels. Much of the pollution is caused by the tens of thousands of vehicles clogging Bangalore's streets. At Royal Garden Villas, the air is clean and the grounds are as green and peaceful as a botanical garden.

8) How close to the site are schools, religious facilities and markets?

Within 3-4 miles there are religious facilities, schools, banks, medical clinics, markets, and local government offices. Royal Garden Villas will be self-sufficient with shops, restaurants, offices, and a supermarket. We will also offer daily shuttle service to downtown Bangalore.

9) How far is the commute to Bangalore?

The highway from the city to our luxury Bangalore properties is being upgraded and widened. If you have to commute, the time varies from 30-40 minutes. The good news is that many IT firms and Fortune 500 companies are moving north of the city to be within easy reach of the new Bangalore airport, scheduled to open in April 2008. The area surrounding the Bangalore airport will soon be a thriving metropolis as people migrate north to escape Bangalore's congestion and smog. Royal Garden Villas is situated just 14 miles from the new Bangalore airport and will become a magnet for residents wishing to escape to a tranquil, peaceful community.

10) Has the land been acquired for the next two phases?

We have agreements in place to acquire the land for Phases II & III.

11) Are the highways in good condition from Bangalore to Royal Garden Villas and the new airport?

The NH-7 is currently being widened so as to have a six-lane road throughout its length from Hebbal to Devanahalli. This will be the main access route to and from central Bangalore to the new Bangalore airport and its new surrounding airport city. Apart from this the Bangalore airport will be accessible through a four-lane road (NH-220) starting from Hosur Road in the south and intersecting Sarjapur road, Old Madras Road and NH-4 near Hoskote. This four-lane road will perhaps be the most suitable route for all the corporate company's personnel, who will move to and from the Bangalore airport and the corporate hubs in southern and eastern Bangalore.

12) What if the plans and permits are not granted for Phase I?

The property has been converted for the purposes of development and all permissions have been approved. We are awaiting approval of the final permit, which is expected shortly.

13) Is Royal Indian Raj planning other projects in India?

Yes. We are planning to start construction in 2007-08 on Royal Garden City, Bangalore on 3,000 to 5,000+ acres near the new Bangalore International Airport and Royal Garden City and Financial Harbor, Mumbai on 3,000 acres. In addition, we have proposed Royal Garden Cities in Delhi and Kolkata.

14) What are the different types and sizes of apartments?

Royal Garden Villas offers several floor plans of two, three, four, and five-bedroom apartments and villas. Our floor plans range from 1,045 sq. ft. to 6,200 sq. ft.

15) Is there a clubhouse and what are the other facilities?

Yes. We offer a luxurious Pool Pavilion, state-of-the-art fitness center, lighted tennis courts, squash court, world-class spa and riding, walking and jogging trails. Royal Garden Villas will provide free membership to all residents to our Pool Pavilion. Nominal usage charges will be assessed for use of the lighted tennis courts, health club, and spa. In addition, an 18-hole championship Jack Nicklaus Signature Golf Course is planned for Phase II.

16) How do I book my home at Royal Garden Villas? -- Two simple steps!

1) Submit a contact form. Upon receipt of your form, a sales representative will be assigned to you, who will contact you via either email or phone and supply you with a booking agreement form.

2) Complete your booking agreement form and return it to us with your down payment. The down payment amount is 30% of the listed purchase price.

17) What happens after I book my new home?

You will be required to pay the remaining 70% balance in 18 equal bi-monthly (every other month). Groundbreaking is anticipated in July/Aug 2008. Your payments will begin in July/Aug 2008.

18) When do I get a confirmed allotment?

On payment of your 30% down payment.

19) How are installments to be paid?

Installments are to be paid by post-dated checks, which is a pre-condition of the allotment. The payment schedule is 18 equal bi-monthly payments. The payments are not linked to the progress of the construction, but on a time bound basis as the delivery date has been established. If checks are dishonored the booking stands automatically cancelled. It is the purchaser's responsibility to ensure timely disbursement of installments from HFI's and no demand will be made by us of the HFI's for the disbursal of installments. To facilitate smooth payments, customers are required to issue a consent letter. Postdated checks for the installments paid will be returned on receipt of the institutional payment. Bank financing is applicable only after permits and permissions have been granted on the property and the executed sales agreement and purchase of sale with banks has been executed.

20) Will prices change?

We anticipate prices will escalate for Phases II and III.

21) What happens if I cancel my booking?

If you cancel, then 25% of your down payment would be forfeited as a cancellation fee and deducted on cancellation of a booking and the balance will be refunded only after making a new sale of the apartment or villa.

22) Can two flats be bought and combined into one luxury flat?

No. We offer a wide variety of floor plans and homes, so no combinations are necessary.

23) Are modifications permitted in the apartments?

Yes, depending on the stage of construction. All modifications will be completed at an additional expense. No modifications will be allowed three months prior to tentative handover date of the home.

24) Will parking be provided to homeowners?

We will provide one car parking space for every owner. Additional car parking will be offered at additional cost.

25) Is the title of the Bangalore property clear?

Absolutely. The Bangalore property is freehold, marketable and free from all encumbrances.

26) Will there be any future legal complications from the previous owners?

No. All the legalities have been thoroughly checked for the Bangalore property and the titles of the land are crystal-clear.

27) Are there any free amenities provided by Royal Garden Villas?

Homeowners will have free access to our luxurious pool pavilion. Nominal usage charges for the health club, spa, and tennis courts will be assessed on use. Your maintenance fees will be used to properly maintain and repair all the amenities. Charges for the use of the Jack Nicklaus Signature Golf Course apply on a per-use basis.

28) When will construction commence and when will RGV be completed?

Phase I is scheduled for January 2009 and the start of construction of Phase II will follow immediately. Phase I is due to be completed in 18-24 months.

29) Are any finance facilities available?

Royal Garden Villas is affiliated with major banks such as HSBC, ICICI, State Bank of India, ABN Amro and several others, and financing up to 70% can be availed when permissions are granted.

30) What are the maintenance costs?

The maintenance charge is Rs. 25/-per sq. ft. and will be collected annually. This maintenance charge shall be for upkeep of roads, security, gardens, electricity charges of the common areas of the layout, cleanliness of the layout and maintenance of the amenities. From the second year onwards, maintenance charges will be levied on a quarterly basis payable in advance. All future payments are to be made favoring the property management company and payable as listed above.

31) Are there any other charges?

The Sinking Fund is Rs. 25/-per sq. ft. per year. We have a statutory obligation to collect a Sinking Fund. This is done so that in case any building needs to be repaired or reconstructed in the future, we have sufficient funds to carry out the work. This could be to carry out reconstruction, repairs, structural additions or alterations to the building as the architect thinks is required and certifies. We have chosen to make the sinking fund an annual fee for the time being. We feel that in order to provide and maintain international standards and receive appropriate finance for repairs, upkeep and damages to the properties, an annual sinking fund fee paid to the Strata Council is necessary. If, in the future, the Strata Council feels enough funds have accumulated in the sinking fund, they can choose to end the payments. This amount will be deposited in an escrow account and the accruals will be used for major expenditure.
One-time charges include a 8.5% market value of the unit as stamp duty and 1% of the market value fixed by the government as registration expenses. Totally it is 9.5% of the market valuation fixed by the government. The market valuation is fixed by the government. The valuation is fixed by the government from time to time. Additional charges also include legal fees, external infrastructure charges for electricity, water & sanitary, and service charges towards property assessment. VAT, service taxes and any other statutory levies as applicable are payable at actual on demand.

32) How many floors are in each building and how many apartments are there per floor?

Our buildings are ground + three with one apartment per floor.

33) Has BDA sanctioned Royal Garden Villas?

All permissions have been approved. A final building permit is expected to be approved shortly.

34) Who is responsible for the maintenance of Royal Garden Villas?

Royal Indian Raj will care and maintain Royal Garden Villas as a Signature Property.

35) I'm an NRI from the United States. How secure will my home be while I'm away?

Very secure. Our security staff will be aware of your absence and our maintenance staff will assure your peace of mind by maintaining your home in the same condition - if not better - than if you were there yourself.

36) Do I get taxed by the U.S. government on bringing back profits after paying capital gains in India?

Yes, capital gains on NRI investments are taxed by the U.S. government. Approximately 15% on the capital gains, less whatever tax paid in India. (it means one can offset tax paid in India against tax payable in the U.S.)

37) What are the ramifications of repatriation when a foreigner (not of Indian origin) buys property in India?

One has to obtain permission from Reserve Bank of India for repatriation of NRI property sale proceeds and there is no general permission for repatriation. Reserve Bank of India may give permission to repatriate only the amount invested in NRI real estate or the sale proceeds less taxes on a case to case basis.

38) With respect to the maintenance fees, is there a cap on how fast they can increase?

No. There may be an increase in the maintenance cost, due to the annual increase in staff salaries and the cost of maintenance. For example, electrical and civil repairs involve materials whose prices vary daily; as well landscaping costs also vary.

39) On Page 4 of the booking agreement, there are some fees listed in the table at the bottom (Legal verification $75, Finalization of construction agreement and agreement to sell $120, ...). Is the buyer responsible for these fees and when does this have to be paid?

Yes, the buyer is responsible for the above-mentioned fees, but you can use your own lawyer, if you wish. The legal verification fee has to be paid during the inspection of documents like Khata, sale deed, encumbrance certificates etc. The Agreement to sell and the Construction Agreement fees can be paid during the time of possession, when the documents are filed.

40) At the bottom of the same table on Page 4, it states "All the fees mentioned above will exclude some miscellaneous expenses which will be charged on actual." What are these miscellaneous expenses and how much are they?

If any other legal documentation's have to be done based on your requirement or according to the prevailing procedure in the future, that is when these charges will occur. These miscellaneous charges will be charged according to the type of work.

41) On line item 27, it states "Assignment will be entertained only after signing the agreement to Sell and Construction Agreement and after payment of the transfer fee of Rs 100 per square foot and subject to the assignee agreeing to comply with the earlier terms of conditions agreed by the Assignor." Who is responsible for the Rs 100 sq feet transfer fee. Is it the seller or the buyer?

The RGCEPL customer will pay the fee because he is the one transferring the unit and the unit's documents into the buyer's name.

42) Based on RBI rules, do you have to hold the property for at least 3 years from taking assignment/possession or 3 years from original investment?

It is usually from the time of the investment, but we are seeking a clarification from our Indian accountants and lawyers.

43) On line item 11 of the booking agreement, it states "I/we shall pay the costs such as the sales tax, deposit for electricity, water supply charges, sewerage charges and costs relating to extra works such as mesh, grill etc as may be required for the villa. I will also bear the Registration charges/KEB/BWSSB charges as applicable at the time of the registration." Which of the charges are relevant for an apartment vs. a villa? How much is the sales tax? Is it included in the purchase price? What are the registration charges and what is the expected amount?

All the above-mentioned costs are applicable to apartments as well as luxury villas. The sales tax is 4% of the total cost of the unit you choose to buy. No, it is not included in the purchase price. The registration amount is tentative and will follow the prevailing rates per sq. ft. at the time. Currently it is about 120 Rs per square foot. The other charges for mesh, grill etc. are considered to be the modification amounts. These are not provided by default. This can be provided to the customer if he wishes for one at the RGCEPL prices. The entire modification amount can be finalized at the time of possession, which is during the final settlement.

44) What is the current brokerage fee for selling a property in India?

The brokerage fee is 2% of the total amount of the unit.

45) Does Royal Indian Raj Corporation provide property management services in the event that I would want to rent the property for a certain portion of the year? What is the expected monthly rent for this location and for the type of property that I am interested in?

RIRIC will be providing professional property and hotel management services from a industry leader for a management fee. Our Concierge Rental Program will be available to maintain and manage your luxury villa or apartment home while you are away. The monthly rent can't be determined at this time. However, it's fair to say that when your home is completed in two years, rents will be significantly higher than existing rates because of the new Bangalore airport. Your property will be located only 14 miles from the new airport, making it one of the best investments in India with its projected six million annual passenger flow, so we expect significant demand for our exclusive residential resort.

46) Can we have multiple holders listed on the title (i.e. my brother and I) since this would be a joint property investment?

Yes, you can have multiple holders. Even if it is purchased by cash, you can register the property in both names by following normal procedures.

47) On the FAQ, it states that Royal Indian Raj has clear title for the land/development free of all encumbrances. Can you provide copies of a clear title? What if there is title dispute later? Is there such a thing as title insurance and who pays for that? Would the builder indemnify investors if there is a title dispute prior to completion of construction?

Yes, copies of deeds and titles can be provided on request. One of India's top judges, Justice Michael Saldana, has confirmed our clear title. In the event of a dispute that can't be resolved, any monies paid by you will be refunded.

48) Why is RIRIC involved in this project?

We realize the acute need for building satellite communities around India's major cities. These communities will appeal to executives, self-employed workers, retiree's, and NRIs. The location of the community is intended to alter the local village structure as it has existed for generations. We intend to create jobs, improve agriculture, provide local farmers with guaranteed markets for their produce, improve living conditions, and most importantly, provide for the elderly and children. We feel it is our responsibility to build a school for the local children, provide medical facilities for all, and support processing plants for local farmers.

49) Can Non-Nri's and Non Indian Citizens buy and sell real estate in India?

Yes. As per the Indian Regulations, if you are not of Indian descent and you wish to acquire residential property, you may:

i) apply to the Reserve Bank of India (RBI) for permission;

or

ii) incorporate a company in India and thereafter buy the property in the name of the Indian Company and for the business activity of that company.