FAQ'S

Most lenders would consider any property bought during the last 3 -6 months as a regular home loan application. You would be eligible for the same rates and income tax benefits as any other home loan. However, if you delay and the property purchase becomes more than 6 months old it will be treated as Loan against Property. The rates for the same are higher and there would be no tax benefits as well.

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

As per Real Estate (Regulation and Development) Act, 2016, “Carpet Area” means the net usable floor area of an apartment, excluding the area covered by the external walls, areas under service shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

A list price is how much the seller lists the home for, also referred to as their “asking price.” The sale price is the amount the home actually sells for.

The Registration Act, 1908, the Transfer of Property Act, 1882 and the Real Estate (Regulation and Development) Act, 2016 mandates the registration of an agreement for sale of an immovable property. By registering the agreement for sale of an immovable property, it becomes a permanent public record. Further, a person is considered as the legal owner of an immovable property only after he gets such property registered in his name.

Usually, if a real estate agent is asked to help you with the value of a piece of property, he would be able to do so based on information through recent purchases & sales of any similar property in that area. E.g. Let us believe that you need to use a piece of property as a security against a loan, then during such instances, the bank’s loan approval process would be faster and smoother if an official evaluator certifies the property.

Nowadays, several banks insist on valuation certificates before issuing loans using properties as security. The value thus certified may also have chances of getting a higher amount of loan sanctioned. Besides, this official valuation will be a useful negotiating tool when selling the property. Such certifications are advantageous in situations where the correct value of the property has a legal bearing—such as a will statement, insurance papers, business balance sheets etc.

Capital Gains are not charged if a person buys a new flat within two years of the date of sale of the original flat and invests the entire profit made into the new apartment. However, the same is subject to the provisions of the Income Tax Act, 1961. One should always consult with his/her Chartered Accountant in this regard.

An agreement of sale, coupled with actual possession of the property, is considered as a conclusion of the sale. Usually, during the time of possession is when the entire amount is to be paid.

Depending upon the type of case it is, a rent agreement can be taken care of in two ways:

• When the rent contract is from year-to-year / exceeding one year’s rent / reserving yearly rent, then a registered document can be created, which both the landlord and tenant must execute.
• When an oral agreement followed by delivery of possession is considered to be enough.

The basis for the calculation of maintenance charge is dependent on the actual area owned by the individual.

Co-operative Housing Societies usually have a legal compulsion to collect a Sinking Fund. This fund is implied so that, just in case the building needs to be repaired or reconstructed in the future, society has sufficient funds to carry out the work. The General Body of the society then decides the amount that is to be contributed-it should be at least ¼ per cent per annum of the cost of each apartment, excluding the value of the land. Eg. To carry out reconstruction, repairs, structural additions or alterations to the building as the architect thinks is required and certifies.

Pradhan Mantri Awas Yojana (Urban), PMAY this scheme is primarily aimed at providing housing for all. Therefore, understandably, all those who already own a home or any of their family members own a home, are kept out of the benefits of PMAY.

The list of documents required to apply for a housing loan is as follows:
  Completed Home Loan Application Form

• Passport-size Photographs
• Proof of Identification like PAN Card
• Passport
• Aadhar Card

Proof of Age: (Any one of the below)

• Aadhar Card
• Passport
• Bank Passbook
• Driving License

Proof of Residence:

• Bank Passbook
• Voter’s ID
• Ration Card
• Utility bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill)

Income Documents:

• For Salaried Individuals:
• Form 16
• Certified letter from Employer
• Payslip of last 2 months
• Other investment proofs (like fixed deposits, shares, etc) and his/her passport-size photographs.

Self Employed:

• Income Tax Returns (ITR) of the last 3 years
• Balance Sheet and Profit & Loss Account Statement of the Company/Firm (duly attested by a C.A.)
• Business License Details (or any other equivalent document)
• Registration Certificate of Establishment
• Proof of Business Address

Property Documents:

• NOC from Society/Builder
• A detailed estimate of the cost of construction of the house
• Registered Sale Deed, Allotment Letter or Stamped Agreement of Sale with the Builder (original document)
• Occupancy Certificate (in case of ready-to-move-in properties)
• Property Tax Receipts, Maintenance Bills and Electricity Bills
• Payment receipt or bank account statements showing payments made to the Builder or Seller

Your eligibility for a home loan is always determined by your satisfactory compliance with the statutory KYC (Know Your Customer) norms of the banks, your financial status and repayment capacity.

These are a few ways to reduce your EMI: You can opt for a loan with a longer repayment tenure. Go for a Step-Down EMI Plan. Try and consider taking loans with your existing bank. Opt for a higher down payment.