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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.

15. How much time does it take for the documents to get registered?

The entire property registration takes around a week. It starts with the preparation of the final deed which is done by the buyer’s lawyer, and the fee of the lawyer is around 1% of the property price. This process takes about 5-7 days. The buyer also has to pay the stamp duty, this charge varies from state to state, but is usually around 5% of the true market value of the property. The stamp duty in Mumbai is 5%. Once the payment is made, the bank issues the receipt and acknowledges the payment, this process does not take more than a day.

16. Can I register my property online?

Mumbai offers the luxury of property registration online. To do so, you need to find out the circle rate to decide the actual value of the property you are about to purchase. On the basis of that, you can use an online stamp duty calculator, to figure out the registration and stamp duty amount. For online flat registration, you can also pay these fees online and get a receipt for the same. However, this appointment can only be made after the payment of the registration fees and stamp duty has been processed. It can be done using net banking, your credit, or a debit card. TDS also has to be paid online, for which you can get a receipt for the same. Your mobile will receive all the OTPs and details regarding your property registration, and the message regarding the registration will also be sent to your phone. However, bear in mind that for the registration of your house you have to mandatorily visit the registration office.

17. How To Calculate Stamp Duty On Property Purchase?

Stamp duty charges on the property can be calculated easily using a property registration charges calculator online. Stamp duty calculation is done on the basis of the rates that are decided by the state government. For Mumbai, it is 5% of the property value. Factors that affect the stamp duty charges are the location of the property, type of property, usage of the property, etc. There are various stamp duty calculators available online which can easily determine the exact charges that are to be paid.

18. How is stamp duty paid?

Stamp duty on the property can be made through any mode which is convenient for the buyer.

  1. You can physically pay it in person, all these details are written on the stamp paper which can be bought from an authorized seller. All the relevant details regarding the property are noted on the stamp paper, and the value of the stamp paper is equal to the stamp duty available.
  2. You can make the payment through an authorized franking agent. Most banks have this facility. The property details are printed with the paper along with the relevant stamp duty charges and submitted to the bank. This service can be availed by homebuyers by paying the franking charge levied by the agent.
  3. You can also pay your stamp duty online by just logging into the SHCIL website. Register as a new user, and once the registration has been made, a link will be sent to your verified email address to complete the process.
19. What is the Difference Between Pre-Approved & Pre-Qualified Home Loans?

Home loan documents and the home loan process can be slightly different for pre-qualified and pre-approved home loans.

  1. Usually, the pre-qualification process precedes the pre-approval of the home loan.
  2. The pre-qualification process is usually when the applicant offers the lender a comprehensive account of their credit statement and financial history, income, company details, etc.
  3. Pre-approval is the step where the lender verifies the details and documents required for a home loan that is provided by the applicant. They also do a thorough credit check and verification of the lender’s financial background.
  4. Pre-qualification is quite an elementary process as it is mostly verbal, on the other hand, the pre-approval process requires a comprehensive set of financial documents like income tax returns, balance sheets, etc.
  5. A pre-qualification letter does not cost the applicant anything, however, a pre-approved letter may cost the applicant an amount after the loan closure.
  6. A pre-qualified letter need not specify the interest rate on the home loan, however, the pre-approved letter will specify the rate of interest that can be locked in a specific rate
  7. The pre-qualification process can take up to 30-45 days, however, the pre-approved phase can take around 4-5 days for the loan to close.

20. Is It Important To Have A Home Inspection?

Before you decide to invest heavily in a home, make sure that you cover all bases and check the quality of the home you are about to purchase for you and your family. In India, almost a lac of home-buyers buy their property without actually knowing the structural faults and issues with their homes. Usually, while buying a home we often place a lot of importance on the location, amenities, nearby facilities, etc, and although these are important considerations to make, one needs to inspect their home for structural integrity, design flaws, walls, ceilings, etc. Here’s a checklist you can use for a thorough home inspection-

  1. For Floors and Ceilings, check for cracks and alignment of the doors and windows as it may reflect structural and workmanship flaws. Check for peeling off paint, and water sports on the walls and ceilings, they usually have a light brown color.
  2. For the Carpet area, make sure that your developer is following the RERA norms. According to the RERA, the definition of carpet area is changed so as to stop unscrupulous means of inflating the size of the apartment. Carpet area as per RERA is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment'.
  3. Make sure your window gapings are sealed, as open gaps may lead to inflated electricity bills due to energy loss. The gap between the window and the sill should be checked as this gap may cause a lot of problems during the rainy season.
  4. Check the tiling, look for any faulty tiles or dado tiles, which can fall sometimes if they are hollow. Look for any sharp edges of the tile which may hurt your feet if gone unnoticed.
  5. Check for plumbing measures-like clogged pipes and toilets, leaks in the concealed pipeline, and check the PVC pipes, basins, faucets, and showers.
  6. Check for electricity fixtures- this is quite important as faulty or old wiring can cause fatal accidents. Get a professional inspection company to check the main wiring, bulbs, lights, energy efficiency, and if there are adequate numbers of electrical points in every room.

21. What are the auspicious days on which one should book a house?

Buying a house is quite a huge event in a person’s life, both financially and emotionally. Therefore, getting the perfect and the most auspicious day to make your property registration profitable and prosperous is important. The auspicious day to book a house depends on a variety of factors and differs from person to person. It is, however, common to observe a Shubh Muhurat based on the holy Panchanga or an auspicious timeline within which you should book your home.

It is also important to follow Vastu for home. Vastu Shastra for home is a set of auspicious principles based on the optimum alignment and directions to maximize prosperity and good fortune.

22. Who is a 'deemed owner' for the purpose of payment of property tax?

The definition of a deemed owner is- that they are an owner by implication. It means that they need not be the person under whom the property is registered, but they are liable to pay the house property tax. Some instances where this may occur-

  1. When an individual transfers the property to their spouse or minor child.
  2. In a Hindu Undivided Family (HUF) - a case where two or more people hold a legal property, like in the case of home owned by a joint family where the property cannot be legally divided among the members.., it holds the property on behalf of all members, it will be treated as the owner, while in reality, the property is in the name of the individual members of the family.
  3. The person who has been allotted a building under a house building scheme in a cooperative society or company will be the deemed owner of the property.
  4. A buyer of the property who is willing to perform their part of the contract according to the provisions of section 53A of the Transfer of Property Act, 1882 is deemed as the owner of the property. That person only has possession but no title in the property.
  5. A person who has had a lease on the property for not less than 12 years and has acquired rights, they are the deemed owner of the property.

23. Can a property other than a property used for residential purposes by the owner and his family, be called a self-occupied property?

The provisions of the I-T Act for FY 2018-19 state that if a person owns more than one house, and none of them have been put out for rent or let out during the year, then they can treat both properties as self-occupied and all other properties, if any, as deemed to let out. The market rent that a similar property would fetch is deemed as the annual value of the property and is taxable even if they don’t earn an income on this. Thus, a person can have only one self-occupied house property as per the provisions of the I-T Act for the current FY, and he has to pay tax on all other house properties even if they have been lying vacant or occupied by any family member. The new provision states that considering the financial burden of paying taxes and maintaining families on multiple properties, there have been some changes.

If the person owns more than two houses, then they can claim the annual value of any two properties as nil, therefore they won’t be required to pay tax on the market rent on the second property. It can be treated as self-occupied only if it meets the following conditions.

  1. If it is occupied for the owner’s own residence.
  2. If it cannot be occupied owing to the owner’s employment, children’s education, or business at some other place.

24. Do I have to pay property tax for a vacant house property other than self-occupied property?

Taxable Property can be your home, office, shop, or building as the Income Tax Act does not differentiate between a commercial or residential property. The property is taxed under the income from house property, and the owner for the purpose of the income tax is the legal owner of the property.

If it is used for business it can be taxed, then the maintenance and repair can be claimed as an item of business expenditure.

New tax reforms have made it easier to extend the notion of self-occupied to two or more properties and the remaining are taken as deemed to be let out. A house property that is rented for the whole part or a part of the year is considered a let-out property for income tax purposes.

Using an online property tax calculator, you can estimate property taxes on the multiple properties you own. The taxes on the houses you let out are taxed on the market rent of the property for the entire year.

25. What are the current rates for the different property taxes that need to be paid?

Property tax is the amount that is paid by the owner of any property to the relevant municipal body in the area, periodically. This tax is paid every year and it is charged on every tangible asset that the person owns. These taxes are based on the assessments made by local municipal bodies and they accordingly levy a proportionate tax on the property. The rate of property tax and manner of valuation differs from one municipal authority to the other. There are different ways in which property taxes are calculated. Take the Annual Rental Value System- it levies taxes on the property based on the gross annual rent it can incur if it is let out. On the capital value-based system, the property tax is estimated on the basis of the market value of the property. This system is used in Mumbai, where the property tax is a percentage of the market value of the property. Currently, this rate is 0.316-2% depending on property use.

26. Who will pay the property tax when the title of the property is in dispute?

In matters of dispute, the opinions of the court are final. Disputed properties often go through a long and complicated battle in courts where lengthy documents are reviewed to assess the real owner of the property. However till the final judgment arrives, an assessing officer has the power to decide the owner who will be liable to pay the property taxes till a final judgment has been made with regards to the real owner of the property. If the judge decides against the assessing officer’s judgment, then the person who has been paying the taxes all this while can ask for a refund from the owner deemed by the court.

27. How important is the 'facing' of a house? According to Vastu, a house should face which direction?

As per Vastu Shastra for home, the facing of a house is really important as the placement ensures an easy path for good fortune and prosperity to enter your home. A north-east-facing home is quite ideal according to Vastu Shastra. According to Vastu, north, east, and northeast facing homes are the most ideal and auspicious for your home. Contrary to popular myths, a west-facing home is also a great choice as it invites success and fortune to the youth living in the house.

28. What is most important in a home inspection?

Getting a home inspection done is an important step before zeroing in on a property. A home inspection thoroughly investigates the quality and design idea behind constructing the unit. It checks for construction defaults, safety hazards, plumbing, electricity, etc. However, the most important point in a home inspection is to assess the structural integrity of the home, and see if there are any foundational defaults in the unit you are about to purchase. Checking for structural issues can bring out many safety issues related to electrical wiring, plumbing, HVAC systems, and broken windows.

29. How to calculate carpet area?

With the new changes brought about by RERA, buying a house is now more transparent than ever. According to the RERA norms, the projects are required to disclose their actual carpet usable area, to provide accurate information about the space in their apartment. Now buyers will know the exact space that is allocated to them and the amount of space that is allocated to balconies and verandahs. RERA defines ‘carpet area’ as the ‘net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’. The formula is

Carpet Area = Net Usable Floor Area + Internal Walls

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