An Explainer: Work Order

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Description

In the world of business, the term work order would simply mean an order placed by an entity for availing of certain services or buying products for a company. For instance, if you are a small textile business, you might place an order with a handloom company to supply you 1,000 hand-made saris. The arrangement under which the supply will take place will be called work order.

In real estate, while the original meaning of the term remains the same, there is a small catch. Some developers make you sign a property sale agreement along with a work order. In the work order, they include the cost of several furnishing and fittings that they would incur during the construction process. Most buyers might not be aware of this, but if you sign a work order with your developer, the stamp duty and value-added tax charges on your property go up. From a buyer’s point of view, it is better if they sign just one sale agreement and avoid making the work order a part of the deal. 

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Tags: Real Estate, Stamp Duty, developers, Video, VAT


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