Disclaimer: Elite Developers has made available this website solely for educational and informative purposes with regard to real estate sector and no warranty is made with respect to the accuracy or reliability of the information provided. There is no assurance that any statement contained or cited herein is complete, correct or precise and the same is not to be construed as a legal advice on the matter. Elite Developers has the right to alter or modify any content on the website at its sole discretion. Elite Developers disowns any liability that may arise in connection with the use of this information. Interested persons are advised to apprise themselves of necessary information before investing/purchasing any property.
The Real Estate Regulation and Development Act (RERA) 2016 effective from 1st May 2017, is the law created to regulate the real estate sector. It seeks to ensure transparency and accountability in the real estate sector. It sets up clear regulations to protect the home buyers & developers against default and provides for fast track grievance redressal.
A RERA Registration Number is assigned to a project after its registration with the RERA authority in the state. It is granted to projects once all required documents have been submitted by the developer and validated by the RERA authority. It indicates that a project is being developed in compliance with RERA.
As per RERA, Carpet Area is the net usable area of the apartment. This excludes the area covered by external walls, areas under service shafts, exclusive balcony or veranda. However, this includes the area covered by the internal partition walls of the apartment.
Built-up Area includes the carpet area, outer wall thickness and the balcony.
The built-up area along with a share of all common areas such as the lobby, lift shafts, stairs, etc. proportionately divided amongst all unitsmakes up the Super Built-up Area.
Floor Space Index is the ratio of the combined gross floor area of all floors (except areas specifically exempted under regulations) to the total area of the plot. It varies from locality to locality depending on the surrounding infrastructure to support the development. A higher FSI will have a higher built-up area.
Loading Factor is the multiplier applied to the carpet area that accounts for a flat's proportionate share of the common area. Thus, the Loading Factor, when combined with the carpet area, leads to the super built-up area.
A Clearance Certificate is used to attest that an entity/person has paid all dues and is clear of any liabilities that they held towards another entity/person.
A Commencement Certificate is issued by the local authorities to a real estate developer giving them the final permit to start construction. It is issued only after the developer presents all required clearances and sanctions. It is mandatory for a developer to obtain this document before commencing the construction of a building.
A Completion Certificate is issued by a local authoritystating that thedevelopment has been in accordance to the approved sanctioned plans or specifications.
A Conveyance Deed is a legal document that shows the transfer of property title from one person to another. It is similar to a sale deed; however, it has a broader application. It not only covers cases where title is transferred through sale, but also includes transfer of title in case of a gift, exchange, lease, mortgage or any other circumstances.
Encumbrance Certificate or EC is a certificate that assures that a property is free from all liabilities and has an adequate legal title. An EC may also contain liabilities created on a property that is held against a home loan as security. It is a clear indicator of all transactions with regard to the property.
NOC is issued by any agency, organization or institute indicating the intent of not objecting with the development proposed in a vicinity.
Occupation Certificate or Possession Certificate is issued by the local government authorities pronouncing a building suitable for habitation.
Property Card is the legal proof of ownership of land in an urban area. It contains the history of ownership of a land parcel.
A sale deed is a very important legal document for evidencing sale and transfer of ownership of property in favour of the buyer from the seller. The sale deed is executed subsequent to the execution of the sale agreement/agreement for sale, and after compliance of various terms and conditions detailed in the agreement for sale/sale agreement.
Stamp Duty is a tax levied by the government on the purchase of a property.
Indian Green Building Council (IGBC) Green Homes is a rating programme developed in India, exclusively for the residential sector. The objective is to facilitate the effective use of site resources, water conservation, energy efficiency, and handling of household waste, optimum material utilization and design for healthy, comfortable & environmentally friendly homes. The Certification Levels Awarded are Silver, Gold, and Platinum based on the extent of sustainable practices followed.
It may happen due to multiple reasons:
Through a thorough online search, you can find a lot of relevant project information online that could enable you to be more informed before a site visit or interaction with any developer's representative:
If you wish to connect with the developer directly, make sure to go to the official website of the developer and connect on the contact co-ordinates mentioned there.
As per RERA, each real estate agent needs to be registered with the authority. RERA provides the registration number along with the registration certificate
to every RERA authorized real estate agent.
You can check information of all registered agents through the RERA website by searching for his/her name or Agent registration number (For example, MahaRERA website→ Registration→ Registered Agents → Search→ View details)
List of registered real estate agents can be checked online on state-specific RERA sites (For example, MahaRERA website→ Registration→ Registered Projects→ Search→ View Details→ Project Professional Information)
Following criteria can be used to shortlist projects:
Through a thorough online search, you can find a lot of relevant project information online that could enable you to be more informed before a site visit or interaction with any developer's representative:
The construction quality stands for adhering to IS standards and delivering on the following aspects:
|1||Conventional Techniques||In-situ method or wet construction method, in the conventional formwork, standard framed panels are tied together over their backs with wailings, which are essentially horizontal members.||Bricks remain cooler as compared to concrete, modifications later are easy to be implemented.||Wall forms are prone to edge and corner damages, increased pressures by wet concrete can lead to a leak of grout and hence, a bad finish to the wall.|
|2||Aluminum Form Technology||Commonly known as "MIVAN" is a popular type of aluminum formwork technology. The formwork and floor slab structures provide a structural system in one continuous pour. Using this technology, large room sized walls and floor slabs are erected at the site.||Concrete shapes constructed with the utmost consistency, accuracy, and high quality.Highly durable structures produced.||Making modifications is not easy.|
|3||Tunnel Form Technology||In this technology, a stable structure is put up on a 24-hour cycle basis. The tunnel form technique is commonly used for multi-storied buildings as it reduces cycle time.||A sturdy and durable structure formed.||Making modifications is not easy.|
|4||Prefabrication||It is the practice of assembling components of a structure not at the place of the actual project, but at a factory. Then, the entire assembly or sub-assembly is transported to the construction site and assembling it with the main structure.||Indoor fabrication can reduce the impacts of severe weather. Reduces inaccuracy in construction.|
The Indian Green Building Council (IGBC) has launched IGBC Green New Buildings rating system. This rating program is a tool which enables the designer to apply green concepts and reduce environmental impacts that are measurable. IGBC recognizes Green New Buildings that achieve one of the rating levels with a formal letter of certification and a mountable plaque.
You will require your Pan Card, Aadhar Card, 2 passport size photographs and a canceled cheque for booking.
As per RERA, the agreement of sale must be registered before the receipt of 10% of the total sale consideration by the builder/developer.
Process of registration:
Registering the documents related to the transfer, sale or lease of property is mandatory by law under Section 17 of the Indian Registration Act, 1908.
Find below the steps involved in the registration of a property and the documents required to ensure that your property gets successfully and timely registered:
Check for encumbrances at the office of Sub-Registrar of Assurances: This can be done by taking a look at the title deed or ownership status of the property such as mortgages or loans. You should verify that the title deed is registered in the name of the person who is selling the property. While investigating this, you must check the following aspects:
Preparation of the final deed by the buyer's lawyer:
It is the buyer's lawyer who prepares the final sale deed of the property. The document is embossed on green legal paper leaving the date and place blank and then submitted for stamping. The fee of the lawyer though varies, is usually one percent of the property value and the process takes around a week.
Payment of stamp duty:
The buyer has to pay the stamp duty for stamping of the Sale Deed. The charges vary from state to state but are usually around 5-6 percent of the final sale consideration as per the sale agreement.
Execution of the final deed at the local office of Sub-Registrar of Assurances:
This will require the presence of the buyer, the seller and two witnesses at the office of the Sub-Registrar of Assurances within whose jurisdiction the property is located.
The fee is usually one percent of the transaction value or Rs 30,000 - whichever is less.
The due registration fee is to be deposited with the cashier against a receipt and then the document is presented before the Sub-Registrar in accordance with Section 32 of the Registration Act, 1908. The documentation is returned to the buyer within half an hour. Subsequently, the seller hands over the physical possession (the keys) of the property to the buyer.
Apply for the mutation of the Title Deed:
Mutation refers to the change in title ownership from one person to another when a property is sold or transferred. This is essential as it enables the new owner to get the property recorded in his name in the Land Revenue Department.
Once the buyer attains the letter of mutation, he becomes the official owner of the property purchased. Since the process is very complex and involves numerous steps, it is recommended that you should take assistance from a property agent or consultant and a qualified lawyer.
The documentation should include the following:
List of papers/documents applicable to all applicants:
The loan approval process can take 15 to 30 days. The actual time will depend on documents and the smooth scanning of the documents.
Subvention scheme allows the concerned person to not pay any Pre-EMIs till fixed period or possession i.e., all the interest till fixed period or possession will be paid by the developer. So, basically, you own property without having to pay any interest till the fixed period or possession.
Full EMI: Full EMI repayment of a home loan is the payment of principal as well as interest. This payment begins after the construction of the house is complete.
Pre-EMI: It is the payment of only the interest applicable on the loan, so Pre-EMI is lesser than full EMI. Pre-EMI is paid for the time period when the house is being constructed. The pre-EMI period is not accounted as part of the loan term
Difference between Full-EMI and Pre-EMI
Loan disbursal: The full EMI option is more apt for a one time disbursal of the entire loan amount. The pre-EMI option is suitable when loan disbursal happens in parts.
Interest rate calculation: The interest of pre-EMI is compounded based on the loan amount disbursed to the developer unlike the interest of Full EMI which takes into account the entire loan amount.
Loan repayment tenure: Since the monthly installments under full EMI contribute to the principal amount, the debt is repaid sooner by choosing this option compared to the pre-EMI option.
EMI payments: The monthly payments begin from the start of the construction for the pre-EMI option. Whereas, the EMIs for the full EMI option starts only after the completion and possession of the property.
Impact on the components of loan: With the payment of each monthly installment using the full EMI option, the principal amount and tenure get reduced. On the other hand, the EMIs paid using the pre-EMI option do not have any impact on the principal amount, loan repayment tenure, or rate of interest.
Resale of property: With pre-EMI, the borrower will be able to sell the property right after or within a few years of its completion. On the other hand, individuals who have availed the full EMI option may not be able to sell the concerned property for a certain period of time.
Impact on finances: Paying pre-EMI can be easier on the pocket owing to the fact that the borrower has to only pay the interest during the pre-construction period while this might not be the case with the full EMI option.
Pre-EMI is Ideal for:
Those who wish to save money during the pre-EMI period and invest it in such a way that they get good returns on the amount.
For example, consider the full EMI payment is Rs. 25,000 out of which the interest contribution is Rs. 5,000. By choosing to pay pre-EMI only, i.e., Rs. 5000 interest only, the borrower can invest the remaining Rs. 20,000 elsewhere and earn consistent returns. This can be accrued to pay the EMI at a later stage
The pre-EMI option is also ideal for property investors who wish to sell the property once construction is completed
Those who are waiting for a change in income capacity or cannot afford to pay full EMI at the moment will find the pre-EMI payment to be the best option
Full EMI is Ideal for:
Those who wish to pay the home loan by the time of possession of property.
This option is also ideal for those who face the risk of delay in construction. This would mean payment of pre-EMI for a longer period, which makes the total cost of availing the loan higher
Both pre-EMI and full EMI repayment method for home loan enjoy the same tax benefits. The tax deduction is not applicable during the under construction phase. However, once the borrower obtains the possession certificate, the amount paid as interest (in pre-EMI or full EMI option) will be aggregated and is considered for a tax deduction in 5 equal installments.
Conditions for choosing Full-EMI option
Below mentioned are the scenarios wherein it is preferable to choose the full EMI option for your loan repayment:
Conditions for choosing Pre-EMI option
See the list mentioned below in order to learn when you should opt for the pre-EMI option:
A pre-approved home loan is an offer for a loan based on your repayment capacity. The disbursal of the home loan is subject to you identifying a property within the validity period of the pre-approved loan and the property meets the lender's legal and technical due diligence requirements.
The Main Advantages of a Pre-Approved Home Loan:
Loans are pre-approved by banks based on your credit history and previous loan repayments if any.
The documents that need to be submitted are:
List of Papers/Documents Applicable To All Applicants:
Income Proof for Salaried Applicant/ Co-applicant/ Guarantor:
Income Proof for Non-Salaried Co-applicant/ Guarantor:
The pre-approval is open only for a maximum period of six months and if you do not apply within this period, it becomes null and void. The validity period might vary from bank to bank. Once, the validity expires, you will again be charged the processing fee for the loan.
Interest rate: You should find out if the rates are fixed or floating. As opposed to Fixed Rates, Floating rates vary according to market conditions. For shorter loan tenure of 2-5 years, it is better to opt for fixed rates. But for a longer tenure, floating rates work best.
Pre-Approved loans: Banks with your salary account might offer you a pre-approved loan. This has certain advantages like less documentation and faster processing.
Processing charges and prepayment: The processing fee is the charge banks deduct for processing the loan. This can be anywhere between 0.25%-2% of the loan amount and varies from bank to bank.
Documentation: Though most lenders seek the same documents, like proof of age, address and income, actual requirements may vary.
Turnaround time: The time taken to sanction and disburse home loans varies from bank to bank. There are a number of post-disbursement services involved. These include getting regular account statements and interest certificates on time every year. Choose a lender with strong systems and a good record of after-sales service.
Pre-approval on Property/Developer: A lot of projects are pre-approved for availing home loans for buying a property in that project by a certain number of banks. This means that the bank has done due diligence on the legal aspects of the property and only then approved the property beforehand. So whether or not you avail a loan from that bank, you can conclude that the project is safer given that it has been pre-approved by some reputed banks.
Credit score: The credit score ranges from 300 to 900. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved. Anything above 750 is considered a good credit score. All banks /NBFCs usually look at the credit score as one of the many checks they do before advancing a loan.
How it is calculated:
A credit score is calculated on a number of factors, especially on your payment history. Your repayment track record contributes to over 35% of weightage while computing the credit score. In addition, your credit score is also calculated based on:
A credit scoring algorithm is then used by credit bureaus to calculate your credit score. Your credit score not only helps lenders assess your loan eligibility, but it also helps them understand if you are worthy of credit. The higher your credit score, the higher are your chances to get your loan approved.
Benefits of a good credit score:
With a good credit score, banks provide you with a lot of benefits, such as low-interest rate, higher loan amount, quicker loan approval process and higher repayment period. To enjoy all these benefits, the eligibility criterion is to have a credit score of 750 and above.
How to get your credit report?
Errors in your credit report can delay the loan approval process or at times result in rejection of loan. So, it is better that you check your credit score before going for a loan, to avoid any unnecessary delay.
You can buy your credit report along with the credit score from CIBIL. The fastest way of getting your CIBIL credit report is through online. You need to pay fees of Rs. 500 to get your credit report online.
You can visit the site below to get your free credit score
You can apply for tax deduction under the following sections:
This section provides tax deduction for the amount paid by an individual towards repayment of the principal amount of home loan. The maximum tax rebate allowed is 1.5 lacs under this section.
This section entails tax benefits on interest paid on home loan. The maximum tax benefit is 2 lacs for a self-occupied property.
The home loan can be used to cover cost of construction, repair, or purchase of a property. In case of a rented out property, there is no upper limit for seeking rebate. In this case, the entire interest paid on the home loan is eligible for rebate.
Section 80 EE:
This section provides tax exemption on home loan interest for first time home buyers. An additional deduction of Rs.50000 is provided which is over and above the tax deduction of Rs.2 Lacs provided under section 24B and Rs.1.5 lacs under section 80C. However, the deduction is applicable only if:
Price of Property purchase < 50 lacs
Home Loan amount < 35 lacs
The benefit is available till repayment of the home loan.
Here is a list of important property documents required to buy an apartment or an independent house.
If you are booking the house before the construction begins, you only need to pay the booking amount. If it is under construction property then you need to
pay the cumulative amount specified in the payment plan till the current status of construction.
For ex. If your payment plan specifies 10% booking amount, 10% on completion of the plinth and 10% on construction of the first slab, then you need to pay total 30% while booking if the first slab is already completed.)
According to RERA, 70% of the amount realized from the home buyers should be kept in an escrow account, opened in a bank recognized by the government.
The developer can withdraw money only when it is certified by an architect, engineer and a chartered accountant, that the amount withdrawn is in the
proportion of the percentage of completion of the project.
A developer cannot accept more than 10% of the cost of the apartment as an advance from the home buyer, before getting the agreement of sale registered.
If the person makes an advance deposit on the basis of an advertisement or information contained in the brochure or model apartment and sustains a loss or damage due to incorrect or false information, he shall be compensated by the promoter.
The amounts will have to be paid as per the payment schedule mentioned under the state RERA rules and as per the agreement between the developer and the purchaser.
Before taking the keys from the developer or an owner, make sure that you have received the original documents and photocopies of all the essential documents from the developer/owner. The important documents one should be obtain are as follows:)
As per RERA, the developer is liable to return the complete amount paid by you with interest and compensation if he fails to deliver the project on the committed timeline and provided that such delay has been caused owing to the developer.
Things to check within the Project/Unit
The amenities ensured at the time of sale should be available.
Lifts and common areas:
The lifts should be working property and ensure that the common areas are well-lit.
Features and fittings:
At the time of possession, you must check the fittings and fixtures provided in your house. These fittings include electrical points, switchboards, bathroom fixtures, door knobs, windows, etc.
Doors and windows:
You should not forget to ensure that the doors and windows are placed as per the plan. All the doors and windows should open and close smoothly. Ensure that there is no rusting on the handles and no creaking side while opening and closing the doors.
Both exterior and interior painting should be complete at the time of possession. There should be no visible flaking or patching. You should also check for cracks in the walls especially around electrical sockets.
Look for cracks:
One must carefully look for the cracks in the foundation, ceilings and walls, which essentially indicate movement of the structure caused by settling, soil expansion etc. Check for cracks on the walls, especially along the electrical sockets.
Clogged drains and outlets is a major issue encountered on moving in a home. You should ensure that all drainage outlets in balconies, bathrooms and kitchen are working.
Check for leakages:
It is easier to address the leakages at this stage before you have moved into your house. Hence ensure that there are no leakages in the bathroom, kitchen sink, other taps and faucets.
Check switches and plug-points:
Make sure that all electrical sockets, plugs and bulb holders are connected to the main supply. All switches and plug-points are working. If there is inverter supply, do not forget to check if the supply shifts to the inverter once the main supply is switched off.
Obtain all sets of keys:
You should make sure that you have collected all sets of keys for your house.
According to RERA, in case if any structural defect or quality issue, is brought to the notice of the developer within a period of five years from the date of handing over possession, it shall be the duty of the developer, wherever possible to rectify such defects without further charge. This should be done within thirty days.
The developer should pay the interest amount for the extended time on the amount paid by the customer. The rate of interest should be the same as the rate which customer pays for delayed payments; this interest rate should be decided before by the developer and customer. If there is still dispute, you can approach the RERA tribunal. Appellate Tribunals under state regulators will be enforced to settle real estate grievances and complaints within 60 days from the date of filing.
RERA Authority for every state has laid out its own online mechanism to file a complaint. E.g. To file a complaint under Maharashtra RERA, you need to register as a user on the state website for RERA. After the registration, in your profile, you will find the tab to file the complaint.
The fee for the complaint differs with the state as well. For e.g. In Maharashtra, the fee is Rs. 5,000 and in Karnataka, the fee is Rs. 1,000.
Till the formation of the society, the developer should take care of the common amenities although, after the formation of the society, the respective society should take care of the amenities.
A developer must form a society in accordance with the provisions contained in the applicable local laws. For eg, in Maharashtra, the society is formed once the developer has reached 51% of booking in the building. In the absence of local laws, the society is formed within a period of three months of the majority of allottees having booked their apartment.
According to Co-operative Housing Society Manual 2012 – here is the list of roles and responsibilities of cooperative housing society managing committee: