Here’s all the information you need before you go on exploring real estate.
This is the net usable area of the apartment that excludes the areas under service, shafts, lifts, balcony or veranda.
Floor Space Index is the ratio of the combined gross floor area of all floors (except areas specifically exempted under regulations) to the total area of the plot. The FSI varies with every location depending on the surrounding and the development rate. A higher FSI will have a higher built-up area.
It is the certificate issued by the local authorities as a green signal to start the construction work.
Occupation Certificate is given to a building after it passes all the standards of becoming a building that is suitable for habitation.
A Sale Deed / Agreement for Sale is an important evidence in sale and transfer of ownership of a property in favour of a buyer from the seller.
Stamp Duty is a tax levied by the Government against the purchase of a property.
The Real Estate Regulation and Development Act (RERA) 2016 effective from 1st May 2017, is the law created to regulate the real estate sector. It seeks to ensure transparency and accountability in the real estate sector. It sets up clear regulations to protect the home buyers & developers against default and provides for fast track grievance redressal.
As per RERA, each project wherein the intent is to sell the flats / shops / commercial offices needs to mandatorily get registered with the authority.
There are many sites where you can find project information among them are the RERA (Real Estate Regulatory Authority). RERA, being a government entity, is considered the most trustworthy source of information. You can also refer to the developer’s website to get more information about the property you are looking for. Apart from these sources, there are many online realty portals that display information pertaining to different developers and their project. These portals also have comments and ratings section where you can see the reviews of the projects.
If you are planning to apply for a home loan you will need the following documents ready with you for submission.
Employer Identity Card.
Loan application with 3 passport size photographs
Proof of Identity (Any one):
• PAN/Passport/Driver’s License/Voter ID Card.
Proof of Residence/ Address (Any one):
• Recent copy of Telephone Bill/ Electricity Bill/Water Bill/Piped Gas Bill or a copy of Passport/Driving License/Aadhar Card.
Property Papers:
• Permission for construction (where applicable).
• Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale.
• Occupancy Certificate (in case of ready-to-move property).
• Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt.
• Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder, Conveyance Deed (For New Property).
• Payment Receipts or bank account statement showing all the payments made to Builder/Seller.
Income Proof for Salaried Applicant/ Co-applicant/ Guarantor:
• Salary Slip or Salary Certificate of last 3 months.
• Copy of Form 16 for last 2 years or a copy of IT Returns for last 2 financial years, acknowledged by the IT Department.
Income Proof for Non-Salaried Applicant/ Co-applicant/ Guarantor:
• Business address proof.
• IT returns for last 3 years.
• Balance Sheet & Profit & Loss A/c for last 3 years.
• Business License Details (or equivalent).
• TDS Certificate (Form 16A, if applicable).
• Certificate of qualification (for C.A./ Doctor and other professionals).
What are the taxes that I need to pay before buying a property?
1. GST as per applicable rates.
2. Stamp duty and registration charges.
3. TDS or tax deduction at source on amount exceeding Rs 50 lakhs for the purchase of property excluding agricultural land.
Can I repay the loan ahead of schedule?
Yes you can repay the loan amount ahead of schedule to the lender as per their terms and conditions, and it is necessary to get these terms mentioned in your loan borrowing agreement, as further there will be no confusion regarding the extra charges.
Can I sell the property, even when the home loan is outstanding?
Yes, you can sell the property with the consent of the banking institution. If the buyer is also taking a loan in this case if he / she is borrowing from the same bank then after completing the complete process the bank clears the 1st party balance loan amount and releases the documents of the 1st party and then the balance amount paid to the seller. If the buyer wants to make a payment outright, he can make it to the bank directly. The property papers will be released only after the bank has recovered the entire loan amount.
Can a single woman get a loan?
Yes, a single woman can get a loan. Many lending institutions also have special schemes for them, such as a discount of up to 0.25% on the interest rate.
Can I sell the property, even when the home loan is outstanding?
Yes, you can sell the property with the consent of the banking institution. If the buyer is also taking loan in this case if he / she is borrowing from same bank then after completing the complete process the, bank clears the 1st party balance loan amount and releases the documents of the 1st party and then the balance amount paid to the seller. If the buyer wants to make a payment outright, he can make it to the bank directly. The property papers will be released only after the bank has recovered the entire loan amount.
Can a single woman get a loan?
Yes, a single woman can get a loan. Many lending institutions also have special schemes for them, such as a discount of up to 0.25% on the interest rate.
What is a down payment?
Generally, banking/finance institutions pay around 75 to 85 percent of the cost of the property bought. The remaining 15 to 25 percent of the amount is paid by the borrower direct to the builder / seller, this amount is known as the down payment.
This is one of the most important steps of buying a house.
When should the agreement of sale be registered?
As per RERA, the agreement of sale must be registered before the receipt of 10% of the total sale consideration by the builder/developer.
The documentation should include the following:
Duplicate copy of the Sales Deed required to be registered
Two passport size photos each of buyer, seller and witnesses
Photo ID Proof of buyer, seller and witnesses
Copy of the latest property register card
Copy of the municipal tax bill to indicate the year in which the property was built/constructed
Copy of the PAN Cards of the seller and the buyer
No Objection Certificate (NOC) for the property
Latest Receipt for Tax payment
Sanctioned Building Plan
Cash or demand draft to pay Stamp Duty
Khata Certificate/ Property Card
Occupancy Certificate
All title documents of land owner
7/12 extracts
Registered Development Agreement (if in case of Joint Development property)
