The joy of constructing your dream home on the plot of land you own is incomparable. Deciding to buy a home is one of the biggest steps one can take in life. Though it's a great feeling to be a homeowner, So it’s imperative to make sure it is done wisely as there are so many things to take into account when you buy a home. One needs to keep in mind few things before investing in any kind of property.
- + How to choose the right property?
One should buy property in an area which has adequate basic amenities such as power, water, sewerage, etc. It is important to do your checks and balances while deciding on a project. Infrastructure in the area, connectivity, builders goodwill and price of the property are key components a buyer needs to take into consideration. A buyer should also carefully check points such as the builders experience, number of projects completed and delivered, banking institutions involved and present buy options available to suit your requirements. It is better you conduct a field survey before identifying a suitable property meeting your budget and location preference.
- + What are the important documents one should check before buying any property?
If you want to purchase a property, you must see the approved layout plan, approved building plan, ownership documents, carryout search, etc. Consult an advocate before you purchase a property so that he can advise you.
- + What are the taxes you have to pay while purchasing property?
If you are buying a new property, you have to pay Service Tax, VAT and Stamp Duty on the total amount of purchase. If you buy re-sale property, then you do not have to pay any of these taxes.
- + What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?
Market value means the price at which a property could be bought in the open market on the date of execution of such instrument. The Stamp Duty is payable on the agreement value of the property or the market value whichever is higher.
- + Who is the appropriate authority for knowing the market value of the property?
The Sub-Registrar of the area, in whose jurisdiction the property is located, is the appropriate authority for knowing the market value of the property. In addition to this, financial institutions do also assess market value of the property through their own empanelled valuation agencies
- + Who is liable to pay Stamp Duty-the buyer or the seller?
The liability of paying stamp duty is that of the buyer unless there is an agreement to the contrary.
- + Who can be a co-applicant?
A co-applicant is/are the co-owners of the property which is being offered as collateral/security to the loan. However all co-applicants need not be co-owners. Co-applicants to the loan are generally husband/wife, father/son, etc.