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1. What does vastu shastra for home mean?

Vaastu shastra for home is a traditional and ancient form of Indian Architecture that proposes to use the benefits of nature, its energy fields, and elements in a scientific way to enhance wealth, happiness, and health in our living space. Although it may not be absolute for your home, it’s the science of the environment around you to enhance your daily life. It creates an energy around you that revitalizes the energy in your body and your mind.

One of the most important Vastu tips for homeowners and buyers is the direction of the main entrance. Vastu Tips for home entrance suggest that the main door of the house is regarded as a gateway for good energy, so make sure you make it Vastu-friendly. For example, if the door is facing the south, place a pyramid or a helix near it.

2. What is the basic procedure of taking a home loan & what are the eligibility criteria?

The basic procedure for taking a loan for a home starts with you filling the application form which is the most basic document that starts your home loan process wherein you provide your details like your name, address, occupation and income. Additional documents required for your home loan may include details about the property you wish to purchase, estimated cost, and the down payment you can pay. These documents need to be verified before your loan application form can further. Home loans being a long-term borrowing instrument, their tenure can range from anywhere between 5 years to 30 years. Banks look into your credit history, essentially they assess your credit score before they grant you the loan. They assess your income in comparison to the cost of the house and determine if you will be able to pay off the house.

Pre-qualified is usually the first step- it tells how large of a loan you can qualify for, and pre-approved is the second step where they conditionally grant you the loan for the house.

The extra costs in applying for a home loan may include application charges, administrative charges, legal fees, franking fees, notary fees, indemnity costs, CERSAI charges, and documentation fees.

3. What is meant by stamp duty?

Stamp Duty and registration charges are some of the preliminary requirements for purchasing a property. Stamp duty is a tax that is levied on a single purchase of property and it has to be physically impressed on the document concerned showing that the stamp duty has been paid.

Stamp Duty Calculation differs from state to state but they are usually 5-7% of the market value of the property. Stamp duty in Mumbai had been reduced to 2% till March 2021 due to the pandemic, but now reinstated back to 5% from April 2021. It also depends on the kind of property, commercial or residential, number of floors, and location. It is payable on sale deeds, conveyance deeds, and power of attorney papers. It should be paid on or before the date of executing a document. It can be paid through money order or DD within two months of the execution of the instrument.

4. What is property tax?

Property Tax payment is made out to the local government or the municipal corporation of his area. It includes the owner’s tangible assets which include his house, his properties that rents out, other residential commercial or residential properties that he possesses. For property tax online payment, one can go to their municipal corporation website and access the property tax portal to pay their taxes.

Depending on the use of property, the property tax rate in Mumbai ranges from 0.316%-2.296%. If it’s a disputed property, then the property tax will be paid by the person selected by the assessing officer till a decision has been reached in court. Property tax calculator depends from state to state but to calculate property tax in Mumbai the following formula is used-It is a percentage of the *capital value of the property.

*Capital value = Rate of base value^* Total carpet area/area of land in case of vacant land * building type * age factor * usage factor * floor factor.
(just check the numbers & calculations)

5. What is property registration?

As per section 17 of the Registration Act, 1908* property registration is a simple process, where, after completion of processes and submission of all documents you legally become the owner of the property. To simply put it, you can legally use or dispose of the property. However, property registration involves a process on the completion of which you’re one step closer to getting access to your dream home.

These steps include-
1. Verification of the title of the property
2. Estimation of the property value
3. Preparation of the stamp papers
4. Getting the sale deed ready
5. Payment of stamp duty & registration charges
6. Approach the sub-registrar for registration
7. Documents submission
8. Completion of registration

*The act applies to the entire country except Jammu & Kashmir.

6. Is Property Registration A Must?

When you have narrowed down your dream home in your dream locality, you must remember to register your property as it is necessitated by Indian law. As per Section 17 of the Indian property Act of 1908, property registration is a must as it legitimizes your ownership of that property. In case you forget to register the property in your name, the seller who is the seller from whom you have purchased the property will remain the legal owner and only he/she will be entitled to the rights, interests, and bills related to the property and not you. Hence, you must abide by this law and register your property.

7. Do I Need To Pay Stamp Duty On All The Documents Forming A Part Of A Property Transaction?

Stamp Duty on the property is usually paid on the market value of the property or the selling price of the property to the buyer whichever is higher. This is charged to facilitate the processing of legal documents needed to help with the transaction involved in buying a house. These documents include the sale deed, conveyance deed, and sale agreement. It is a tax paid on any document that is needed to create, extinguish or transfer liability or rights which is why stamp duty charges are paid on all documents that constitute this responsibility.

8. What do banks consider when granting a home loan?

If you are looking to buy a house, then there are certain financial factors you need to check as banks assess them before granting you a house loan. They look at your income and expenses for the last couple of years, your credit card statements, and if you have a lot of unnecessary spending it’s time that you adjust your expenses, as banks do scrutinize spending habits. They also check whether you have any liabilities in the form of debts which may be student loans or personal loans or tax liabilities. They also put a good amount of importance on your credit score so that your credit score is within the 700 range for a good deal on your home loan.

9. Who pays house/property tax?

A person who is in legal possession of a property pays the house or property tax. The word Owner here refers to the legal or the deemed owner of the property. The property must be registered in the name of the person paying the property tax. In general, the rate of property tax ranges from 5-20% depending upon different regions in India. The property tax rate in Mumbai is up to 14%.

10. Does Vastu matter?

Although Vastu for home may not be an inevitable or essential part of living, it does, however, enhance your experience. Abiding by Vastu tips leads to a healthier and fuller life due to an influx of good energy. It is the science of the environment that you live in and tuning it to maximize the inflow of good energy and minimize the bad. The energy in your environment directly links that of your mind, making it an important part of your living space.

11. What are the charges for property registration?

Buying a house can be overwhelming as it requires a lot of financial planning and knowledge about the many procedures and charges related to buying a house. From selecting the best home loan plan for your financial bandwidth to paying your down payment and starting the property registration, buying a home comes with a lot of steps. After possession, it is imperative that you register the house in your name, and in order to do this you need to pay the stamp duty. The Government charges a tax when a buyer wants to register a house in their name, and it varies from state to state, usually, it is 1% of the property price. The Maharashtra government has a flat registration fee for properties worth over 30 lakhs which is 30,000 INR.

12. What property documents require stamp duty?

Stamp duty and registration charges are based on the number of documents that require the stamp duty. The Central Government levies stamp duty on the following documents-

  • ● Exchange Bills
  • ● Credit Letters
  • ● Promissory Notes
  • ● Debentures
  • ● Insurance Policies
  • ● Transfer of Shares
  • ● Proxies
  • ● Receipts
  • ● Lading Bills
Additional charges may be levied by the state government and it varies from state to state.

13. How And When Is The Stamp Duty Paid?

Stamp Duty calculation is an important part of the property registration process and can be done using a stamp duty and registration calculator online. It is payable on the property rate or the circle rate wherein the property is located, whichever is higher. These rates are fixed by the state government, therefore it varies from state to state. For example, for Maharashtra, the flat registration charges of properties worth over 30 lakh is 30,000 INR. Buyers have 14 days after the purchase of property to pay any stamp duty that is due.

14. What are the key charges associated with a home loan process?

When applying for a house loan, the buyer needs to be aware of the financial cost of the home loan process. The first charge related to a home loan is the application fee which is charged on the verification process of all the documents the borrower has provided. This is followed up by a processing fee which is levied on the cost of credit appraisal and it depends on the borrower’s loan type, amount, etc. In addition to these major fees are the supplementary charges- which the technical valuation charges, CERSAI charges, a nominal documentation fee, an indemnity fee, a legal fee charged for the legal scrutiny of the concerned documents, and lastly an administrative fee for the processing of your loan which varies from bank to bank.

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