A lot of the hindrances in real estate deals in India are caused because of documents.
People often don’t know which documents to carry or they misplace some important
documents and fail to restore them. So, if you are a seller, to help ease your sale
process, here is the list.
Original Sale Deed
Title Deed
Relevant tax receipts
Encumbrance Certificate
Registration of a property includes necessary stamping and paying of registration
charges for a sale deed. It is the process of getting it recorded at the sub-registrar’s
office of the concerned jurisdictional area.
There are two different cases of property registration, both of them have their own different
processes -
1. Direct from developer: If a property is purchased from a developer directly, getting
it registered amounts to act of legal conveyance.
2. From another owner: In case the purchased property is in a second or third
transaction, it involves a duly stamped and registered transfer deed.
Nowadays, the property registration process is computerized in most states.
NRI home loans are pretty much the same as any other type of loan. The EMIs need to be paid upfront for the entire tenure of the loan. A person can do it by direct remittances from abroad through normal banking channels or from other financial accounts like NRO, NRE, NRNR, and FCNR as may be permitted by RBI. These accounts vary as per the guidelines of RBI.
Majority of home buyers are dependent on loans. Although, that process is not that easy. On the contrary, it is rather confusing. There are some terms and conditions that a person might find hard to understand or differentiate from each other. One such example is the difference between pre-qualified loan and pre-approved loan.
The two terms seem similar but have a significant difference. This guide will help you
understand and better differentiate between the two.
1. A pre-qualification is the first step of a pre-approval loan.
2. The significance of pre-approval is much higher than that of pre-qualification. In most
cases, pre-qualification is just a verbal discussion between the wishful loan buyer
and the bank executive.
3. The bank executive usually requests the customer to verbally give his financial
details such as credit history, current financial status and income of the last few
years, their annual income, the company they work for, debt-to-income ratio and so
on.
4. Based on these answers, the bank executive does a verification and proposes a loan
which suits the customer according to their budget.
5. A pre-approval is the case where the bank makes an in-depth comprehensive
verification of the customer’s finances- especially, his credit score.
6. Customer’s current monthly income, income over the last few years, debt-to-income
ratio are other factors that they observe.
7. A complete background check is done in case of pre-approved loan, the process is
physical and not just verbal.
As per Section 80C of the Income Tax Act, you are allowed separate deductions on principal and interest amount of the home loan. You can claim deduction up to:
Rs 1.5 lakhs in case of principal
Rs 2 lakhs in case of interest
The amount of stamp duty and registration is also eligible for tax deduction.
There are different types of taxes that are charged during a property deal. It is important to know which ones are applicable on your property. This will help you avoid any type of fraud or malpractice.
1. TDS or tax deduction at source: It is applicable only on purchases where
the amount exceeds Rs 50 lakhs.
2. Stamp duty
3. Service Tax: It is not applicable on `ready to move in’ properties. Only charged if the property is being purchased from the builder who conceived and constructed the project before offering possession to the buyer.
4. Value Added Tax (VAT): It is applicable only in selected states. Please check if your state charges it.
Buying property in India is a dream for Indians and the dream stays even if they move outside the country. They are permitted to do so too. They can acquire all immovable properties in India other than an agricultural property, farmhouse or plantation. The only contingency is that the money used for buying property needs to be received by an inward remittance. A person can also decide to hold it in a non-resident account.
According to the rules, Foreign nationals of non-Indian origin resident outside India are not allowed to buy any immovable property in India. The only way they can do so is by acquiring inheritance from a person who is resident in India.
Ask the seller for the receipt of property tax (Tax of Building / Land tax) paid to local government authorities.
1. In case of a newly constructed building, you can ask for a plan that is approved from local authorities (City Town planning dept, Municipality etc.).
2. If you spot any variations in the approved plan & construction, you can contact the govt authorities mentioned in the plan to find out any violation of the construction rules.
3. If the seller does not provide any of these documents, you can utilize the service of any of the government offices like - House / Flat owners association, Postman, Village officer, Registrar office, Tahsildar, Talathi, Revenue Inspector, R.D.O / MRO, Collector.
4. If the property is not a new one, try collecting a copy of the sale deed/registration document from the seller.
CREDAI stands for ‘Confederation of Real Estate Developers Association of India’.It was formed to organize the real estate sector of India. Main purpose was to lay an ethical code of conduct that can be followed compulsorily by the member builder and developers.
Property disputes are common these days. If you die without leaving a will, it can create a dispute and the family might require legal help to solve the issue. In that case, the law will decide the inheritance of your property. In the process, the number of members in your family, your religion, your relation with a person, all will be taken into consideration. Using these factors, the right shares will be distributed among the legal heirs. One way to avoid them is by leaving a will. If you die leaving a valid will, your property will be divided and inherited as per your terms and your decisions.