Real Estate FAQ - For Buyer
- 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
- 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
- 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
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.
- 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.
- 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
- 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)
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.
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.