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ifms in real estate :-

IFMS stands for Interest Free Maintenance Security Charges. It is an additional charge given by the property buyers to the builders & developers until the formation of the residents’ welfare association (RAWs) for maintenance, upkeep, security purposes, and developmental projects.

IFMS is a non-refundable charge that is diluted as soon as the welfare association is formed. It is one time payment (including taxes) that is usually categorized into hidden charges. An 18% GST is levied at the time of payment. The IFMS in real estate is not fixed. It differs from one property to another. For instance, it will be different for commercial properties compared to residential properties. The only constant factor in it is GST of 18%.

As the name suggests “Interest-free” the amount is transferred to the developer’s account without any interest and once the RWA gets into action, the same gets transferred into their account. 

According to the rules stated by RERA, the builders & developers will have to mention all the charges including IFMS and sinking funds for transparency amongst all.

Is it applicable only to the residents?

As mentioned earlier, IFMS is an additional charge paid by the buyer at the time of investment in a property. It can be any property, residential or commercial; the tax shall be levied on the buyer for the future maintenance purposes. 

Will it be included in the security deposit/token money?

IFMS in real estate is completely different from the security deposits and token money. It is the additional charge that is specifically transferred to a different account until the developer forms the Residential Welfare Association. 

Is it similar to sinking funds?

The builders & developers have differentiated the two. IFMS is used for the recurring expenses while the sinking funds are used for emergency purposes and repairs.

ifms full form in real estate :-

IFMS Full Form is Interest Free Maintenance Security Charges. It is an additional charge given by the property buyers to the builders & developers until the formation of the residents’ welfare association (RAWs) for maintenance, upkeep, security purposes, and developmental projects.

IFMS is a non-refundable charge that is diluted as soon as the welfare association is formed. It is one time payment (including taxes) that is usually categorized into hidden charges. An 18% GST is levied at the time of payment. The IFMS in real estate is not fixed. It differs from one property to another. For instance, it will be different for commercial properties compared to residential properties. The only constant factor in it is GST of 18%.

As the name suggests “Interest-free” the amount is transferred to the developer’s account without any interest and once the RWA gets into action, the same gets transferred into their account. 

According to the rules stated by RERA, the builders & developers will have to mention all the charges including IFMS and sinking funds for transparency amongst all.

Is it applicable only to the residents?

As mentioned earlier, IFMS is an additional charge paid by the buyer at the time of investment in a property. It can be any property, residential or commercial; the tax shall be levied on the buyer for the future maintenance purposes. 

Will it be included in the security deposit/token money?

IFMS in real estate is completely different from the security deposits and token money. It is the additional charge that is specifically transferred to a different account until the developer forms the Residential Welfare Association. 

Is it similar to sinking funds?

The builders & developers have differentiated the two. IFMS is used for the recurring expenses while the sinking funds are used for emergency purposes and repairs.

Difference Between EDC and IDC in Real Estate :-

IDC covers the cost of infrastructure developments like transit systems and highways in the city at the project location.

EDC is for essential facilities like drainage, electricity supply, water supply, landscaping, etc., done solely for the project.

EDC- External Development Charges

EDC stands for External Development Charges, these charges are collected by the government through builders or developers so that they can carry on the external development in order to create a township or society.

All external work including electricity, water supply, roads, drains, sewage schools, hospitals, fire-stations, sub-stations, stadium/sports complex etc are counted in EDC.

Internal Development Charges (IDC) in Real Estate:

In real estate Investment these are the charges that are same as the EDC charges and are collected by the government.

All these charges are used by the government in building the infrastructure and in the improving of socio-economic sectors of the state that includes highways, transportation systems, water supply facilities, electricity facilities and much more.

IDC full form is infrastructure development charges. Do not confuse it with internal development charges. As per the RERA Act, 2016, IDC includes the cost of developing major infrastructure projects like bridges, highways, and transport systems in the city in which the property is located.

EDC and IDC in Real Estate :-

EDC- External Development Charges

EDC stands for External Development Charges, these charges are collected by the government through builders or developers so that they can carry on the external development in order to create a township or society.

All external work including electricity, water supply, roads, drains, sewage schools, hospitals, fire-stations, sub-stations, stadium/sports complex etc are counted in EDC.

Internal Development Charges (IDC) in Real Estate:

In real estate Investment these are the charges that are same as the EDC charges and are collected by the government.

All these charges are used by the government in building the infrastructure and in the improving of socio-economic sectors of the state that includes highways, transportation systems, water supply facilities, electricity facilities and much more.

IDC full form is infrastructure development charges. Do not confuse it with internal development charges. As per the RERA Act, 2016, IDC includes the cost of developing major infrastructure projects like bridges, highways, and transport systems in the city in which the property is located.

EDC ( External Development Charges ) in real estate :-

Besides the basics per sq. Foot Apartment rates, there are different other costs related to the purchasing of an apartment. You may have found different types of expenses such as external and Infrastructure development charges while searching for a property to invest. Prospective buyers willing to purchase an apartment for a housing project would be paid according to their apartment size. The Real Estate (Regulation and Development) Act, 2016 acknowledges these charges. 

To ensure that a housing project is appropriate for consumers, a developer must ensure that a variety of public facilities are present. These include essential facilities such as electricity and water supply, waste management systems and road networks, landscaping, and others. The builder shall pay a fee known as the External Development Charges or EDC to the municipal authorities in that area. It earns the rights to carry out the construction works mentioned above is paid by the developer to the municipal authorities and then forwarded to homeowners. Due to the fact that these charges vary from project to project, buyers have to pay different costs in addition to the per ft of the property rate. However, the apartment’s size is an important determinant of the EDC.

Unlike EDC, the State Government shall levy IDC and hence varies from State to State. In addition, the location and form of project in the city differ accordingly. 

For the local authorities, EDC is indeed a primary source of income. Developers, however, often struggle to make timely EDC payments. The default in the payment of EDC results in a heavy penalty that the developers are expected to pay. In any event, it is not possible to pass the value of the penalty on to the project buyers.

EDC full Form in real estate :-

EDC full Form is External Development Charges.

Besides the basics per sq. Foot Apartment rates, there are different other costs related to the purchasing of an apartment. You may have found different types of expenses such as external and Infrastructure development charges while searching for a property to invest. Prospective buyers willing to purchase an apartment for a housing project would be paid according to their apartment size. The Real Estate (Regulation and Development) Act, 2016 acknowledges these charges. 

To ensure that a housing project is appropriate for consumers, a developer must ensure that a variety of public facilities are present. These include essential facilities such as electricity and water supply, waste management systems and road networks, landscaping, and others. The builder shall pay a fee known as the External Development Charges or EDC to the municipal authorities in that area.  It earns the rights to carry out the construction works mentioned above is paid by the developer to the municipal authorities and then forwarded to homeowners. Due to the fact that these charges vary from project to project, buyers have to pay different costs in addition to the per ft of the property rate. However, the apartment’s size is an important determinant of the EDC.

Unlike EDC, the State Government shall levy IDC and hence varies from State to State. In addition, the location and form of project in the city differ accordingly. 

For the local authorities, EDC is indeed a primary source of income. Developers, however, often struggle to make timely EDC payments. The default in the payment of EDC results in a heavy penalty that the developers are expected to pay. In any event, it is not possible to pass the value of the penalty on to the project buyers.

What is IDC in real estate

IDC stands for infrastructure development charges. Do not confuse it with internal development charges. As per the RERA Act, 2016, IDC includes the cost of developing major infrastructure projects like bridges, highways, and transport systems in the city in which the property is located.

What is IDC full Form in real estate?

IDC Full Form in Real Estate

IDC full form is infrastructure development charges. Do not confuse it with internal development charges. As per the RERA Act, 2016, IDC includes the cost of developing major infrastructure projects like bridges, highways, and transport systems in the city in which the property is located.