Q – What documents should I check before buying a new property?
- Sale Deed
- Title Deed
- Approved Building plans
- Completion Certificate ( Newly Constructed)
- Commencement Certificate ( Under-construction property)
- Conversion Certificate ( If agricultural land is covered to non-agricultural) • Encumbrance Certificate
- Latest Tax Receipts
- Occupancy Certificate
Q – What documents are needed for registration of an independent house?
Allotment papers of the plot, Building Plan approvals, Transfer Deed (in case of multiple owners), Sale Deed, PAN Card and Photographs.
Q – What documents are required for registration of a new apartment/plot?
Sale Deed, No Objection Certificate (NOC) from builder, NOC from banks, Building Plan approvals, Completion Certificate, PAN Card and Photographs.
Q – What documents are required to get a resale property registered?
New Sale Deed, PAN Card, Photographs
Q – What documents do I need to check if I am buying a resale property?
Clear and marketable Title, Sale Deed, Encumbrance Certificate, latest tax receipts, Occupancy Certificate, Building Plan Approvals and Possession Certificate.
Q – How could I verify that the documents shown to me by the seller are genuine?
- Projects approvals can be verified from the corporation or the sanctioning authority’s office • Ownership documents can be confirmed from the Sub Registrar’s office where they are registered
- Share certificate related to societies can be verified from the concerned Society itself
Q – What documents would I need at the time of possession?
- Original copies of the chain of title agreements and Building Plan approvals
- Original registration and stamp duty receipts
- Possession Letter
- Original share certificate (In case of societies)
- Proof of payment of all dues like maintenance charges, electricity bills, phone, water and property taxes up to the date of handing possession
- NOC from the Society or other concerned body confirming no objection to the transfer
Q – What is property registration?
It refers to the registering of documents relating to transfer, sale, lease or any other form of disposal of an immovable property. Registration is compulsory by law for all properties under Section 17 of Indian Registrations Act, 1908. Once a property is registered lawfully, it means that the person in whose favour the property is registered, is the lawful owner of the premises and is fully responsible for it in all respects.
Q – How can I register my property?
Registration of a property includes necessary stamping and paying of registration charges for a sale deed and getting it recorded at the sub-registrar’s office of the concerned jurisdictional area. If a property is purchased from a developer directly, getting it registered amounts to act of legal conveyance. In case the purchased property is a second or third transaction, it involves a duly stamped and registered transfer deed. Nowadays, property registration process is computerized in most states.
Q – What is Power Of Attorney?
Power of Attorney allows a person to authorize another person the right to make decisions regarding the person’s assets, finances and real estate properties.
There are two types of power of attorney. First, the ‘General Power of Attorney’ where a property owner confers ‘general’ rights. The rights include but are not limited to sell, lease, sub-lease etc. The second one is the ‘Special Power of Attorney’ where only a specific right is given by the owner to the chosen person.
Q – Can I authorize someone else to register my property by granting him Power of Attorney? Yes, you can execute Special Power Of Attorney to get your property registered by someone else.
Q – What are the taxes that I need to pay before buying a property?
- The buyer needs to pay the following taxes:
- TDS or tax deduction at source on amount exceeding Rs 50 lakhs for the purchase of property excluding agricultural land.
- Stamp duty
- Service Tax – Applicable if the property is being purchased from the builder who conceived and constructed the project before offering possession to the buyer. If a `ready to move in’ property is purchased from the seller, service tax is not applicable.
- Value Added Tax (VAT) – If applicable in the concerned state.
Q – What is Stamp Duty? Who is liable to pay Stamp Duty? Do I get tax benefits on Stamp Duty?
Stamp Duty is the tax paid for the legal recognition of property. It is paid by the home buyers. You can claim tax incentives of up to Rs 1.5 lakh on stamp duty and registration charges on a new property purchase or construction of a house. However, these benefits are available for only one self-occupied property.
Q – Do I need to pay stamp duty if the property is transferred or is a gift?
Yes. Generally, the stamp duty on the gift deed ranges from 5% to 12% in all states. In few states like Haryana, Rajasthan and Delhi, concession of 1 to 2 per cent is given to female transferors.
Q – What are the general eligibility conditions for availing a home loan?
The general eligibility conditions are as follows:
- The borrower should be a resident of India or an NRI
- Above 24 years of age at the beginning of the loan
- Below 60 years (65 for self-employed) or retirement age when the loan matures
Q – What are the documents needed to apply for a home loan?
You have to submit the following documents:
- Proof of Identity: PAN, Driving license, Voter ID, Aadhar Card
- Proof of Income:
- Salaried Applicants: Latest 3 Months salary slip showing all deductions and Form 16 for the last three years.
- Self Employed Applicants: IT returns for the past 2 years and computation of income for the last 2 years as certified by a CA
- Bank Statement: Past 6 months Guarantor Form (Optional)
Q – Are there any other charges that accompany home loans?
Home loans are usually accompanied by the following extra costs:
- Processing Charge: It is the fee payable to the lender on applying for a loan. It is either a fixed amount not linked to the loan amount or a percentage of the loan amount.
- Pre-payment Penalty: When a loan is repaid before the scheduled duration, a penalty is charged by some banks, which is known as the pre-payment penalty.
- Miscellaneous Costs: Some lenders may also ask for documentation or consultation charges.
Q – What are the types of Home loans available?
The banks usually offer these nine types of loans on interest:
- Home Purchase Loan: It is the most common type of loan taken for purchasing a new residential property or an old house from its previous owner.
- Home Improvement Loan: Home improvement loans are given for executing repair and renovation work at home.
- Home Construction Loan: These loans are sanctioned to construct a house on a piece of land you have already purchased. The loan approval and application process for these loans is somewhat different from the other commonly available home loans.
- Home Extension Loan: Home extension loans are offered for expanding or extending an existing house. For example, addition of an extra room, a floor etc.
- Land Purchase Loan: This type of loan is granted for purchase of a plot of land for both residential or investment purposes.
- Home Conversion Loans: These loans are available for people who have already purchased a house by taking a home loan but now want to buy and move to another house. With these loans, they can fund the purchase of the new house by transferring the current loan to the new house.
- Balance Transfer Loan: These loans are availed to transfer one’s home loan from one bank to another. It is usually done to repay the remaining amount of loan at lower interest rates or when a customer is unhappy with the services provided by his existing home loan provider and wants to switch to a different bank.
- NRI Home loans: These are specialized loans, structured to suit the requirements of NRIs who wish to build or buy a home in India.
- Loan against Property (LAP): These loans are given or disbursed against the mortgage of a property.