Who’s Your Builder?
- Know your builder through his projects. Points to find out about
your builder.
- His previous projects
- His reputation with other business associates
- Achievements
- Whether he offers timely possession
Housing Finance
And You
Keeping the following criteria in mind, check which Housing Finance
Institution (HFI) suits your needs.
- EMI (Equated monthly installment) – The amount and the number
of installments.
- Interest rate and its computation on total loan amount, on reducing
balance or whatever other method.
- Processing fees and any additional charges.
- Need for guarantors.
- Processing time for loan approval.
- Repayment period and pre-payment charges, if any.
- Loan amount approval. This is usually 3-4 times the annual income
of the household
- HFI’s service centre network.
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Intricacies
- Title
- Approval from various authorities
- Amenities
- Possession time
- Occupation certificate if the building is ready
Check Them Out
It is important to check a few things before getting into any deal,
financial or  otherwise
with the builder.
- The area of the flat
- Quality of construction
- Project approved by housing finance companies
- Additional charges
Detailed Examination
While finalising the deal
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Ensure that the ‘Agreement
of sale’ is drafted as per the requirements of Maharashtra
State Ownership of Flat Act (MOFA).
- Annexure to the agreement of sale
A complete ‘Agreement of sale’ contains relevant title certificate,
IOD, CC, list of amenities, copy of plan, etc., as annexure.
- Payment terms
Make sure that the payment terms are linked to the progress
of construction work.
- On finalisation of the deal:
a) Stamp duty – Stamp duty is something like
sales tax, payable by the buyer. It varies from state to state.
- Calculation of stamp duty (Maharashtra)
a) Assess the value of your flat based on
the location. This detail could be availed from the ‘Stamp duty
ready reckoner,’ and obtained from the Registration Department.
b) The stamp duty amount is calculated on
the market value of the flat and not on actual agreement value.
The stamp duty is applicable on the market value or agreement value,
whichever is higher.
The following table will help you estimate the stamp duty amount.
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Market value of the flat as per stamp
duty ready reckoner
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Stamp duty |
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a) Does not exceed Rs. 1,00,000
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Nil
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b) Exceeds Rs.1,00,000 but does not exceed
Rs.2,50,000
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0.5% of the value
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c) Exceeds Rs.2,50,000 but does not exceed
Rs. 5,00,000.
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Rs.1250 plus 3% of the value above Rs.2,50,000
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d) Exceeds Rs.5,00,000 but does not exceed
Rs.10,00,000
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Rs.8,750 +6% of the value above Rs.5,00,000
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e) Exceeds Rs.10,00,000
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Rs.38,750 plus 8% of the value above Rs.10,00,000.
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- Registration
The agreement on which you have paid stamp duty has to be registered
with the Registrar’s office by both the buyer and the seller.
The current registration charges are 1% of the agreement value
or Rs.20,000/-, whichever is higher.
Important notes:
Registration of the agreement of sale is a necessary requirement
before you avail of Housing Finance Loan. HFI will need the registered
deed and a copy of the registration slip. Do remember to follow-up
with the Registration Dept to get the original document back.
Buying A Flat In
Resale
- Verify original agreement for sale and registration receipt.
- Verify whether stamp duty is paid as per market value or not.
- Verify whether flat is free from all encumbrances.
- Verify original share certificate.
- Letter of Intention to the society from seller.
- NOC from society / builder for registration.
- Get transfer papers signed by seller and accepted by society.
- Obtain 230A certificate from seller in Form 34A prior to registration.
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