Knowledge Center

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[accordion open title=”General FAQ’s”]

What is the difference between built up area, super built up area, and carpet area?
Carpet Area: This is the area of the apartment/building which does not include the area of the walls.
Built up Area: This includes the area of the walls also
Super Built up Area: This includes the built up area along with the area under common spaces such as the lobby, lifts, stairs, etc. This term is therefore only applicable in the case of multi-dwelling units.

What are all the important documents one should check before buying any property?
If you want to purchase a property, you have to look at the following

  1.  Approved layout plan
  2. Approved building plan
  3. Ownership documents
  4. Carryout search, etc. Contact an advocate before you purchase a property so that he can advise you.

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. Section 30, of Bombay Stamp Act, 1958 states the liability for payment of stamp duty.

In whose name are the stamps required to be purchased?
The stamps are required to be purchased in the name of any one of the executors to the Instrument.

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.

Which are the instruments that attract the payment of Stamp Duty?
The instruments like the following :-

  1. Agreement to Sell
  2.  Conveyance Deed
  3. Exchange of property
  4. Gift Deed
  5. Partition Deed
  6. Power of Attorney
  7. Settlement and Deed
  8. Transfer of lease etc are some of type instruments attract Stamp Duty on market value of the property.

Note: The above mentioned details are only for knowledge purpose it is requested to contact the concerned person for more details and updates.

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[accordion title=”Housing Finance”]

What are the eligibility conditions for a home loan?
To qualify for a home loan, most of the lending institutions in India require you to be:

  1.  An Indian resident or NRI
  2. Above 21 years of age at the commencement of the loan
  3. Below 65 when the loan matures
  4.  Either salaried or self employed

Home Loan Documents
Salaried Individuals

  1. Salary slip/Form 16 A.
  2. A photocopy of the first and last pages of Ration card or copy of PAN/Telephone/Electricity bills.
  3. A photocopy of Investments (FD Certificates, Shares, any fixed asset etc. or any other documents supporting the financial background of the borrower.
  4. A photocopy of LIC policies with the latest premium payment receipts (if any).
  5. Photographs (as applicable).
  6. A photocopy of bank statement for the last six months.

Self-Employed/Businessmen

  1. A brief introduction of Business/Profession.
  2. Balance Sheet, Profit and Loss account and statement of income with Income Tax returns for the last 3 years certified by a CA.
  3. A photocopy of Advance Tax payments (if applicable).
  4.  A photocopy of Registration Certificate of establishment under shops and Establishments Act/Factories Act.
  5. A photocopy of Registration Certificate for deduction of Profession Tax (if applicable).
  6.  Bank statements of Current account and Saving account for the last 6 months.
  7.  A photocopy of any bank loan (if applicable).
  8. A photocopy of the first and last pages of the Ration card or a copy of PAN/Telephone/Electricity Bills.
  9. A photocopy of LIC policy (if applicable).
  10.  A photocopy of investments (FD Certificates, Shares, any other fixed asset).

What are the types of home loans available?
There are a variety of home loans available. They are:

  • HOME/ BUILTUP PURCHASE LOAN:

This is the common loan for purchasing a home.

  • 2. HOME IMPROVEMENT LOAN:

This loan is given for implementing repair works and renovations to your home.

  •  HOME CONSTRUCTION LOAN:

This loan is available for the construction of a new home.

  • LAND PURCHASE LOAN:

Sanctioned for purchase of land, for both home construction or investment purposes.

  • BALANCE TRANSFER & TOP UP LOAN:

Balance Transfer loans help you pay off an existing home loan with a higher interest rate, and avail of a loan with a lower rate of interest

  • LOANS TO NRI:

This loan is tailored for the requirements of NRIs wishing to build or buy a home in India

What is an EMI?
EMI (Equated Monthly Installment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.

What is a fixed rate of interest?
Some institutions have a fixed rate of interest, which means the rate of interest remains unchanged for the entire duration of the loan. This means you do not benefit, even if rates of interest drop in the market.

What is a floating rate?
This is the rate of interest that fluctuates according to the market lending rate. This means you stand the risk of paying more than you budgeted for in case the lending rate goes up.

What are the other costs that usually accompany a home loan?
Home loans are usually accompanied by the following extra costs:
1. Processing Charge:
It’s a fee payable to the lender on applying for a loan. It is either a fixed amount not linked to the loan or may also be a percentage of the loan amount. The loan amount required by you cannot be less than the processing fee.
2. Pre-payment Penalties:
When a loan is paid back before the end of the agreed duration, a penalty is charged by some banks/companies, which is usually between 1% and 2% of the amount being pre-paid.
3. Registration of mortgage deed.

What are the tax benefits of home loans?
Both principal as well as interest of home loans attract tax benefits. With effect from 1st April 2005 (i.e. assessment year 2005-07) under section 80C of the Income Tax Act 1965:

  • Principal amount of repayment of loan along with other savings such as PF, PPF, Life Insurance premium etc up to a maximum of Rs 1,00,000/- will be eligible for deduction from gross income.
  • Interest paid on loan after completion of construction will be deductible from income from property.
  • For self occupied: Income will be treated as nil and interest payment will be treated as minus income which will be adjusted against other income.
  • For rental property: It will be adjusted against rental income
  • Interest paid on loan before completion of construction will be allowed as deduction from income at 20% per year for the next five years.

Note: The above details are only for knowledge purpose it is requested to contact your bank for more updated and correct details.

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What is Vastu Shastra?
Vastu Shastra is the ancient art and science of building.

Which are the traditional texts which discuss Vaastu Shastra?
There are many age old books on Vaastu Shastra. Some of them are Samarangana Sutradhara, Mayamata, Manasara, Matsya Purana, Brihat Samhita, etc.

What is meant by Vastu Purusha?
Vastu Purusha is the deity ruling the plot of land. Legend has it that when Lord Shiva was fighting the demon Andhaka, His perspiration fell on the ground, out of which was born the Vastu Purusha. This hungry being started devouring all that came in the way. When the Gods in the heaven took up this matter to Lord Brahma, the creator, He ordained them to hold the Purusha face down with the help of 45 deities. Lord Brahma blessed the Vastu Purusha to be the deity of plots of land and that all owners would pray and give offerings to him, in return for which, he would protect the owners/inmates. That is how the Vastu Purusha Puja came into being.

Is there any relationship between Vastu and Astrology?
There is a close relationship between Vastu and Astrology. In astrology, the fourth house has been attributed to immovable property, amongst other things. If the lord of the fourth house, the planets in the fourth house, the aspects to the fourth house, etc. are all good, then the person will enjoy property. Otherwise, the results will be negative. There are also many special conditions or ‘yogas’ such as Ayatna Griha Prapti Yoga, Vichitra Prakara Soudha Yoga, etc. which destine a person to different conditions of property holding. Further, one has also to see the planetary configurations at a given point of time, in conjunction with one’s nakshatra in order to fix a muhurta or an auspicious time for starting various stages of construction work as well as the griha pravesh.

What is the role of geographic directions in designing buildings?
Geographic directions such as North, South, East and West are very important in Vastu. In fact, all buildings are supposed to exactly face each of these cardinal directions and not at an angle.

Which direction should the plot face?
The plot can face any of the four cardinal directions. Based on which side it faces, the position of the main entrance is decided.

Where should the well or water sump be located?
It should be located in the north east corner of the plot.

Where should the tap in the garden be located?
It should be located in the north east corner of the plot.

Where should the main entrance of the building be located?
The house, in the form of a square or a rectangle, is superimposed with a grid of nine by nine divisions. Based on the direction either north, south, east or west, the division in which the main entrance is to be located is determined.

Where should the master bed room be?
The master bedroom should be located in the south west part of the house.

Where should the kitchen be?
The kitchen should be located in the south east part of the house.

Where should the puja room be?
The puja room should be in the north east corner of the house.

Where should the guest room be?
The guest room should be in the north west of the house.

NOTE : The above are only guidelines and not precise prescriptions for building a house as per Vastu shastra. Application of the above should be done only under consultation and guidance of a Vastu expert who will examine the property and make specific recommendations.

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[accordion title=”Buying a property in Himachal Pradesh”]

Facts about buying a property in Himachal Pradesh:

  1.  A non-Himachali cannot buy agricultural land. Since the economy of the state is agricultural/ horticultural driven, Himachal Pradesh has certain provisions under which non-Himachal residents and non-Himachal agriculturists cannot buy agricultural land in Himachal.
  2. Special permissions are granted by the Govt. to outsiders under Sec 118, who intend to buy land in Himachal Pradesh. Outsiders can however buy land that is not being used for any agricultural purpose. However to buy land they would first require a prior permission from the State Government.
  3. Non-Himachalis one can buy or acquire the property only in urban areas and not in rural or agricultural areas.
  4. Property ownership of a non-Himachali would be limited only to the constructed area and the land on which this property is built will not be in his ownership.

Here is how a non-Himachali who wants to purchase or acquire land in Himachal Pradesh can do so:

You first need to clearly determine the purpose why you intend to purchase or acquire under Rule 38 A (3) of Himachal Pradesh Tenancy & Land Reforms Rules 1975. The permissible limits for building a residential house is 500 square meters and an area not exceeding 4 acres for agricultural or horticultural purpose.

Once you have shortlisted the plot and have completed your negotiations with the owner, you will need to visit the local patwari or the right land record officer along with the landowner to get the requisite copies of revenue record:

  1. Latest copy of Jamabandi
  2. Tatima Shajra

Once all the papers are in order and everything is agreed upon you should execute an agreement on the prescribed value of the stamp paper, with regard to the proposed transfer of land. It is not compulsory to register this agreement under the Indian Registration Act.

Here you will have to execute an affidavit duly attested by a magistrate stating that:

  1. That you have not earlier acquired any land for the same purpose either in your own name or in the name of your family, with the permission of the State Government under clause (h) of subsection (2) of section 118.
  2. That the land to be transferred is fit to be used for the purpose for which it is being transferred.
  3. That you will use the land, proposed to be transferred, for the same purpose for which it is sought to be transferred.

Apart from the above, you also need to procure an attested affidavit of the landowner stating therein that he, after the proposed transfer, will not become landless, and if so he shall not claim any benefit/land under any scheme prepared for the benefit of the landless persons in the State.

Since you will be buying the land for building a residential house, you will need to obtain additional documents/certificates including:

1. Certificate of permanent residence issued by the Tehsildar or the Magistrate of the area concerned.
2. No objection certificate in the form of affidavit from co-shares of the land proposed to be transferred.
3. No objection certificate:

  •      Where the land to be transferred is abutting the State or the National Highways from the Public Works Department.
  • Where the land to be transferred is located in an area where the provisions of Himachal Pradesh Town and Country Planning Act 1977 are applicable from the Town and Country Planning authority concerned.
  • Where the land to be transferred is located in a municipal area from the municipality concerned.

4. In case you are a government employee or working in public undertakings/ autonomous bodies, a copy of permission of the employer.

For more information you can also visit the following websites:
(i) Department of Town and Country Planning, Himachal Pradesh (http://himachal.gov.in/tcp/)
(ii) Application forms and criteria for acquiring/ transfer of land to non-Himachali (http://admis.hp.nic.in/hprevenue/PDFFiles/ExtractRule-38-A.pdf)
(iii) Chapter 10 of Section 118 of Himachal Pradesh Tenancy & Land Reforms Act (http://himachal.gov.in/tcp/chap10.htm

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