Buyers Guide
Registration
Registration of a document creates a secured legal title, interest in the subject matter of the document. It is a legal formal Time Limit for registration.
The document/s should be registered within a period of four months from the date of execution of the document/s.
If for any reason, the document/s could not be registered within a period of four months then the same can':" registered within an additional period of four months after making an application and paying penalty.
If more than eight months have passed and if one is desirous of registering the document then one should prepare the Deed of Confirmation/Declaration One Should register the Deed of Confirmation/Declaration to which the, original document has been attached as an annexure. In this case the Deed of confirmation / declaration is registered & not the annexture.
Effect of Non- registration If a particular document is required to be registered under the act is not registered then as per Section 49 of The Registrator Act, 1908, that document becomes inadmissible in the court of law. In other words it losses its legal validity in the eyes of law,
Registration Fees Registration fees is 1 % of the Market Value or Agreement Value whichever is higher subject to maximum Rs. 30,000/-. It is to be paid through Pay Order.
Documents required for registration:
Original Agreement duly executed. In case the document needs to be adjudicated it is better that an unexecuted document is submitted for adjudication.
Pay Order @ 1 % of the Agreement Value or Market Value as per Ready Reckoner towards the Registration Fees.
Two photographs of the executing parties.
Copy of PAN Card. In case the party does not have PAN Card, it has to submit form no. 60.
Original Stamp Duty receipt.
Copy of Power Of Attorney in required cases.
Two witnesses with valid identification proof & photographs.
Copy of Property Card of the Land on which the property is situated.
Photocopy of the Municipal Assessment Bill Copy if the Building is completed prior to 25-03- 1991. And for the Building completed on or after 25-03-1991, copy of I.OD/Commencement Certificate/Occupation Certificate issued by the Municipal Corporation is to be submitted.
NOC under Urban Land Ceiling Act in case the Land is transferred.
Letter from the society in case parties wishes to claim depreciation OR the Building does not have a Lift.
Stamp Duty
Stamp duty is a levy like any other tax collected by the government. It is payable under Section 3 of The Bombay I Stamp Act, 1958. Stamp Duty Is payable on instruments and not on transactions. Stamp Duty is payable on I documents as per Schedule-l of The Bombay Stamp Act, 1958. Stamp Duty is payable on instruments before or at the time of execution or on next working day following the day of : execution. (Execution means putting signature on instruments by the person/s executing the instrument. Stamp Duty should be charged on the basis of the contents of the instrument only. In the absence of any agreement to the contrary, the purchaser/transferee has to pay stamp duty. Information such as the Carpet or Built-up area of the flat, number of floors in the building, year of construction, name of Division village and C. S. / C. T. S. number of plot of land on which property is situated must be mentioned in the agreement for sale of flat for quicker response.
I From 01-05-1994 till date stamp papers are to be purchased in the name of one of the parties to the ' document. Prior to 01-05-1994 stamp paper could be purchased in any name. Stamp paper purchased upto 30-11-1989 was valid for any period of time. However from 01-12-1989 all stamp paper (whether purchased before, on or after 01-12-1989) is valid for a period of six months from the date of purchase. If stamp duty is not paid on time, it attracts penalty at the rate of 2% per month on the deficit amount of the stamp duty w.e.f. 01-05-2001.) Stamp Duty on residential flats in a co-operative housing society and buildings covered under Article 25(d) of Schedule I of The Bombay Stamp Act, 1958,attracts concessional rates. Whereas stamp duty on non-residential properties is charged at a flat rate of 5% of the Market Value. Agreement For Sale, Conveyance, Exchange, Gift, Certificate of Sale, Deed of Partition, Power of Attorney to sale immovable property given for consideration, Deed of settlement, attracts stamp duty on Market Value of the property.
FAQ’s for Bank Loans
YOU’VE FOUND THE PERFECT home, in the perfect locality, signed on the dotted line and booked it. So now all you have to do is decide on where to place your LCD TV? Not quite! There are numerous problems that can crop up even after the down payment is made. Here’s a list of them and their possible solutions:
Loan Lessons
Although the home loan you had based your hopes on may come through, it is very often lesser than the desired amount due to some hitch or another. In such a case, it is very difficult to procure the rest of the money to pay for your house. Sometimes banks even reject the loan application outright because the paperwork submitted isn’t complete or proper.
Solution: It is better to finalize your home-buying decision after ensuring exactly how much loan you will get from the finance authorities prior to entering the deal. Also make sure that when you present the papers, they contain your current employment records, salary slips, loans already taken and credit card history etc.
Possession Delayed
Delayed possession often has a serious spiraling effect. You might have sold your old home or discontinued your lease and need to move into your new home which is still not ready. Or you may be paying hefty amounts of simple pre-EMI interest on your loan which could be making a huge dent in your bank account for months on end. Worse, you could be doing both.
Solution: When buying an under construction flat, it is wiser to buy from a reputed builder and pay money based on a slab basis. This way you pay as per the progress of the project. Also, it would be prudent to have a ‘penalty clause’ with the builder, wherein for every month of delay he has to pay a certain ‘fine’ to you.
Lack of Documents
Most builders have all the municipal documents and permissions ready with them. But different banks have different legal requirements. It may so happen that your bank may demand a certain document that the builder or seller doesn’t possess. This may require you to run to the builder’s corporate office or worse, the municipal office to get hold of the proper documents or repeated trips to the bank to find an alternative.
Solution: Before you pay your earnest deposit, get lists of must- have documents from your bank and get your seller to look at them and tick off all the documents he has in his possession. Then ask the bank if the loan can proceed with the available documents. Usually banks need a copy of the completion certificate, building plans, occupancy certificate, share certificate, 7/12 extract, original agreement, title deed before they can even start processing your loan.
Non-Cooperation
Your near-completion house deal could suffer a serious setback if the builder were go to absconding just before possession. Or your whole deal with the seller could go smoothly only to have the society or builder simply refuse to give you a No Objection Certificate. Or the builder could start acting pricey and demand extra charges for parking or grills or a huge lumpsum of maintenance charges.
Solution: It is important to establish contact with other buyers in the complex to have a collective voice against an errant builder. It gives you bargaining power in case things go wrong. In case of a resale deal, get the seller to introduce you to society office bearers. Establish a friendly interaction so that your requests for an NOC or other building documents are entertained.
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