REAL ESTATE - HOUSE HUNT

YOUR HANDY GUIDE TO HOME BUYING

I] FIRST CHOICE – PICK YOUR CHOICE:

Location is KING in MUMBAI’s Real Estate Market. For most buyers, the choice of a home is determined by destinations they can afford. We bring you locations in Mumbai & Navi Mumbai, segregated by budgets, to simplify your house hunt.

It is always helpful for a home buyer to make a check-list of things to look out for before scouting for a home. After all, buying a home is no child’s play, as one puts in all their life savings in building their dream house. In addition to the financial aspect, another decision that plays a major role is that of an emotional one. A home buyer must give preference to the location, accessibility of the complex and certainly look at whether the amenities and facilities being offered at the project, match his priorities. What is vital is the fact that it is necessary to check whether the project is approved by the civic authorities and construction is undertaken by a reputed developed. In a bid to help home buyers, mentioned below are suitable locations in Mumbai & Navi Mumbai, according to the budget of the home buyers. These are divided into five categories – INR 20-40 Lakhs, INR 40-60 Lakhs, INR 60-80 Lakhs, INR 80-1 ½ Crore and INR 1 ½ Crore and upwards. The ranges mentioned are only the basic cost of the flats and don’t include any kind of additional tax or expenses.

INR 20-40 Lakhs:

“The locations in this category include Vasai-Virar, Boisar, Badlapur, Ambernath-Naigaon, Vasind-Asangaon, Panvel-New Panvel and Ulwe. In these locations, around 50 per cent of the realty market is 1-BHK; 40 per cent is 2-BHK and the remaining 10 per cent is 3-BHK,” The last couple of years saw the city expanding towards the suburbs due to soaring real estate prices, space crunch and increase in demand for housing. For home buyers, turning to the suburbs of Mumbai is an affordable bet. “Virar offers a well-planned area with a scenic, picturesque landscape. Developing at a good pace over the last 10 years and being low cost as compared to Mumbai, Virar has emerged as a major residential accommodation venue. One of the important reasons for Boisar’s residential landscape to have boomed is due to the presence of the Maharashtra Industrial Development Corporation (MIDC) that has created jobs for one lakh plus people. With the train service extended till Vapi, the connectivity of this place has improved. Vasind and Ulwe are other upcoming areas. The former can be reached in 1.5 hours from Dadar by road and the latter is in high demand due to the Thane-Belapur railway line getting extended. One has to be careful while investing in this segment and should opt for good developers as many a times, quality of construction might not be good or infrastructure wise, the place might not be good. “In such cases it doesn’t make sense to invest, as it won’t appreciate and will not have great resale value.

INR 40-60 Lakhs:

The locations available under this budget include Kamothe, Kharghar, Ghodbunder Road (Thane), Dombivali, Vasai-Virar, Badlapur, Boisar, Ambernath-Naigaon, Kalyan and Vasid-Asangaon. In these locations, around 35 per cent of the realty market is 1-BHK, 50 per cent is 2-BHK, 10 per cent 2.5 BHk and the remaining 5 per cent is 3-BHK. These locations have grown due to the industrial activities around it. The prices in these locations have gone up two-three times in the last 10 years. For instance, the property in Dombivali, which was Rs. 1500 sq. ft. previously, is now going at Rs. 4000 per sq. ft. Similarly, the rate is Kharghar have gone up by three times in the last 10 years. The mega-city near Dombivali, developed by Lodha Group, comprises of four integrated projects. Case Bella was the first project that was launched in 2009 at about Rs. 2000 per sq. ft. and within four years, the current minimum price of the apartments in Casa Rio Gold, is pegged at about Rs. 5300 per sq. ft. an incredible rise of about 165 per cent. Locate at Kalyan-Shil Road at the junction of Navi Mumbai and Dombivali, Casa Rio Gold is 15 minutes from DAKC and Dombivali station and 25 minutes from Thane. A toll road has come up from Shil junction to Kalyan. For improved connectivity, in the pipeline is a proposed monorail by the MMRDA, a transport hub and a six-lane highway. “Lodha’s Casa Rio Gold is available in the configuration of 1, 2 and 3-BHK in the range of 40-80 lakhs. As part of developing the social and physical infrastructure, the Group has entered into a franchisee agreement with the MSEDCL according to which, the location has been elevated to Class A category for 24x7 power supply. Navi Mumbai’s Kharghar, Kamote and New Panvel, are promising locations, which have shown tremendous growth in the recent years. Known as the educational hub of Navi Mumbai, Kharghar is a place that is well suited for people across all age groups, be it newly weds, a family with children, middle-aged or senior citizens. With the proposed international airport, the realty prices in these areas have increased by two to three times.

INR 60-80 Lakhs:

Under this budget, the locations available include Thane, Dahisar, Mira Road, Panvel, Kalyan, Kalwa and Virar. Corresponding to the budget, these locations have larger apartment configurations. In these locations, around 20 per cent of the realty market is 1-BHK, 30 per cent is 2-BHK, 30 per cent is 2.5-BHK and the remaining 20 per cent is 3-BHK. Most preferred in these areas, are the 2.5 BHK units. On the central side, Thane has large layouts and open spaces as most people nowadays opt to live in large integrated townships with everything, from work to schools at a stone-throw’s distance. “Rodas Enclave in Thane comes under this budget category and is present in the fully-developed Hiranandani Estate. Thane enjoys easy connectivity with the rest of Mumbai and Navi Mumbai. The property rates in Thane have appreciated from Rs. 2000 to Rs. 15000 per sq. ft. in the last 10 years. Lodha Splendora located on the eight-lane Ghodbunder Road, Thane, offers 1, 2 and 3-BHKs ranging from Rs. 60 lakhs to Rs. 1.5 crores. There is access not only to Central Thane, the Western Express highway and the Eastern Express highway but also to the international and domestic airports, including the upcoming international airport in Navi Mumbai. With businesses and industries already present in the area and a high degree of social infrastructure, Ghodbunder Road with its excellent connectivity, is set to boom. This is already evident as one can see the mushrooming of residential properties from various developers.

Rustomjee Evershine Global City at Virar, provides amenities and caters to all age groups. Global City has a unique offering for Kids – ‘Yazoo Park’, a 12 acre exclusive amusement park for kids inside the township. It has the capacity to house 20,000 families, offers a wide range of apartments to home aspirants ranging from 1-BHK to 4-BHK (400 sq. ft. to 1350 sq. ft.). “To ensure that residents of Global City live in world-class conditions, all forms of basic infrastructure have been planned and are being executed, including roads that are 75-100 feet wider, water and power supply and three sewerage treatment plants that will allow recycling of water. A dedicated sewage treatment plant is expected to generate 1.20 lakh liters of water per day for flushing and gardening purpose. Besides this, around 60,000 plantations will provide a green environment to the residents. Education being a priority, it has proposed schools, colleges, as stadium size playground and a state-of-the-art health-care facility”.

INR 80 Lakhs-1.5 Crores:

According to this budget, the locations available are Thane, Panvel, Kharghar, Mira Road, Bhandup, Mulund, Nerul, Powai, Ghatkopar, Chembur and Kandivlli. In these locations, 1-BHK forms 20 per cent of the realty market, 2-BHK forms 30 per cent, 2.5 BHK forms 35 per cent and 3-BHK forms 15 per cent. These locations demand a premium because of its developed physical and social infrastructure and easy connectivity of all parts of Mumbai and Navi Mumbai. The starting of the Metro and monorails will help in appreciating the value of these areas. These areas have the presence of prominent developers including Lodha Group, Hiranandani, Kalpataru, Arihant Superstructures, HDIL, Marathon and Rustomjee”. Rustomjee Urbania, spread across 127 acres in Thane, falls under this category. The buildings have been designed and certified with IGBC Gold Rating to meet energy efficient standards prescribed by IGBC Green Homes. Acme Group’s Acme Boulevard, located in the prime location of JVLR, falls in this category. “It provides fabulous connectivity with the Westerns Express Highway being at a mere distance of 2.6 kms and the JVLR at a distance of one km. It is in close proximity to Konkan Hospital, Holy Spirit Hospital, MIDC, the domestic airport, Jogeshwari/Andheri railway station, Powai and SPEEZ. Acme Hills in Goregaon East, Acme Avenue in Charkop, Kandivalli West and Oasis in Kandivalli East, also fall under this category. Hiranandani has a project in Kandivlli that falls in this category, with Rs. 1 crore for a 1-BHK going upto Rs. 10 crores for a 5-BHK. “The building is in a fully developed area and is opposite to Raghuleela Mall. It is 90 per cent complete and possession starts in one year’s time.

INR 1.5 Crores and upwards:

Under this budget, the locations available include Goregaon, Malad, Kandivlli, Andheri, Powai, Kanjurmarg, Chembur, Ghatkopar, Lower Parel, Wadala, Juhu, Kurla and South Mumbai. In the luxury space, there are many projects in the most talked about western suburbs of Mumbai like Bandra, Khar and Juhu. The suburbs are well-connected to all major commercial hubs and are in close proximity to the airport, shopping malls and eastern and westerns highways. Juhu is today, without doubt, Mumbai’s most affluent suburb and home to some of the biggest names in India Inc. and Bollywood. It has more celebrities per sq. km. than in any other corner of Mumbai. One of the compelling reasons why people want to reside here is the strong social and cultural fabric. Juhu boasts of many high-street retails destinations, 5-star hotels, world-class health care, renowned educational institutes and places of worship. There are two premium segment upcoming projects by Rustomjee in the area – Rustomjee Elements and Rustomjee Elita. Bandra, also known as the queen of suburbs, is amongst the most sought after residential destinations in Mumbai. Due to its strategic location, Bandra East is witnessing a surge in demand as it is located in close proximity to commercial hubs like Bandra Kurla Complex, international schools and hospitals, airport, Bandra Worli Sea link, Western and the Eastern Express highway. However, with the current under construction supply being very limited, residential values in Bandra East will definitely continue to rise, thereby, giving significant capital appreciation over the next few years.

Two premium segment offerings of Rustomjee in the area include Rustomjee Oriana and Rustomjee Seasons. Khar west has the best gourmet destinations in town. Located minutes away from Linking Road, a bustling shopping destination lined with international fashion labels and Carter Road, Rustomjee’s Le Reve stands in the midst of a haven for epicureans. The neighbourhood boasts some of the finest heritage schools in the city, so the little ones can be assured of quality education. Andheri is another location that offers a mix of convenience and luxury. Acme Group’s Acme Stadium, is located in Azad Nagar, Andheri west and offers exquisite amenities and facilities. Bhavans College, SP Jain Institute of Management Studies, Kokilaben Dhirubhai Ambani Hospital and the Metro railway station; all are located in its vicinity. Its locational advantages include its proximity to malls, good connectivity to all parts of western Mumbai and the Western Express Highway. Other offerings from Acme Group in this range include Acme Legacy located in Vile Parle west and Acme Elanza in Ghatkopar west.

On the central side, Kanjurmarg is the starting point of the Jogeshwari Vikhroli Link Road (JVLR), which connects the Eastern and Western Express highways. Kanjurmarg is at an interesting junction allowing residents to breeze through to either of Mumbai’s key central or western zones. Employment opportunities are replete with easy accessibility to BKC, Lower Parel, Andheri, Powai, Mulund and Ghatkopar, as well as south and central Mumbai, Thane and Navi Mumbai. It also benefits the train network, phase 1 of the monorail route, which connects it directly to the western suburbs and phase 1 of the Metro Rail, which connects it to Versova and Andheri on the western side and Ghatkopar on the eastern side. Lodha Group’s Aurum Grande at Kanjurmarg offer 2 and 3-BHKs costing upwards of Rs. 1.5 crores. Hiranandani’s projects in Powai fall in the category of Rs. 1.5 crore and upwards. Powai, a fully developed township, has seen close to 100 times appreciation in the last 25 years. “While the cost was Rs. 400 per sq. ft. in 1987, today it is around Rs. 30000 per sq. ft.” The Hiranandani Group also has plans to offer 1 and 2-BHKs in Powai that is currently in the pipeline. Chembur has seen phenomenal changes over the last five years and is set to witness a major boom in the forthcoming years, based on the many infrastructure projects that will result in fantastic connectivity to all parts of the city, from south Bombay, BKC, western and central suburbs and Navi Mumbai. “With a change in the income patterns and attitudinal shift is spending and lifestyle expectations, local buyers are upgrading and expect the best layout, designs and amenities and have started to look upon Chembur as a viable residential and investment destination. Supreme Universal’s projects in Chembur include Supreme Signature and Supreme Epitome that fall under this category. The Group’s other projects in this category include Supreme Badrinath at Khar west, Supreme Symphony at Andheri west, Imperial Residency at Juhu Scheme and Lake Superior at Powai.

After evaluating the location and the requirements needed by the buyer, before zeroing in on the property, the buyer should also ensure availability of finance for buying the apartment through savings or loan. These days, developers assist the buyer in arranging finances for buying the home on loan basis. On the same lines, be realistic and do not over commit on your home loans. “Buy a home that is comfortable for you financially. One can always upgrade to a bigger home by selling this later.

II] INFRA WATCH – IS IT THE RIGHT INVESTMENT?

Are you being swayed by announcements of a major infrastructure upgrade in an area, to buy properties? Think twice and take a closer look at the property appreciation dynamics of an area before investing.

Does the announcement of transport infrastructure projects really boost property prices and investor interest in the area? Sometimes it does and sometimes it does not. It depends upon a number of factors, according to property consultants. E.g. with the announcement of the monorail, the property prices had increased by 15-20 per cent in Chembur.

It is an established fact that scheduled infrastructure projects tend to increase the value of properties in the adjoining areas. This occurs because the infrastructure project becomes a part of the USP for the developers or property owners. There have been instances where property prices have increased by 50-70 per cent, since the announcement of an infrastructure initiative, until the operational phase.

Any infrastructure proposal, results in investor interest in the market and then, it is a chicken and egg situation where each drives the other. “Whenever any infrastructure project is launched, it is impacts the property prices in the area as more and more people get interested in the area. Expectedly, the eastern freeways, Santacruz-Chembur Link Road (SCLR), monorail project, have already driven up the real estate values in areas like Chembur, Ghatkopar, Kurla and Andheri. Similar is the case of Kandivlli, Malad and Navi Mumbai.

Since the proposal for the international airport in 2010, the property prices in and around Navi Mumbai skyrocketed from double to triple. The announcement had an impact on the prices in areas like Kalamboli, Kharghar, Panvel and Ulwe. However, with the delay in the project, a price correction was announced immediately by the developers. The biggest problem is that even though a project is announced, there’s no guarantee that it will be implemented. A change in government or its policies could result in an unprecedented delay or complete stalling of the project. The project may not start on time, or the project may get cancelled before it even gets under way. That’s way it pays to stay well-informed, especially if politics are involved.

While infrastructure projects may lead to a rise in demand for low-to-mid-income housing, it could negatively impact the demand for high-end residential property. So, in case of prospective infrastructure projects like an airport or a Metro corridor, the profitability of the property can take beating due to the increased noise and crowding. Also, the cost of properties in areas surrounding major infrastructure projects is expected to rise if the Mumbai Metropolitan Region Development Authority (MMRDA) proposal is implemented. The MMRDA has sent a proposal to the state government to charge a development fee on all property transactions, in areas surrounding major projects like the Chembur-Wadala-Jacob Circle monorail, the Metro corridors and the Sewri-Nhava Sheva Mumbai Trans Harbour Link. “The development charge would be a one-time payment for the buyer; so it should not be a big burden.” So, the buyer should check all these factors before planning to buy properties near upcoming infrastructure projects. “One should check the property appreciation dynamics involved before investing in a certain property, on the heels of a major infrastructure upgrade or project implementation announcement. A proper assessment of the demand drivers around a particular infrastructure project is of the essence to establish the genuine investment potential in the vicinity, on a case-to-case basis. Generally, ‘the real estate zone’ is already packaged within large infrastructure projects to increase the viability. Investing in such zones, maybe as a co-developer, is a good idea”.

III] CHECK LIST – FOR NEW HOME BUYERS

A detailed check-list for potential home buyers, in order to simplify their home buying process, is listed below:

Considering that property has become such a significant and expensive commodity in the past couple of decades, there are always a number of corrupt players in the market who want to make a quick buck and dupe unsuspecting buyers. To avoid such situations, it is necessary for prospective buyers to get into the prescribed form of agreement, instead of signing the one given by a builder, which could have additions and alterations working to his benefit. Very often, fly-by-night builders drafted agreements, which included terms and conditions that were contrary to the provisions of The Maharashtra Ownership of Flats Act and Rules as well as the Maharashtra Cooperative Societies Act. To combat this, the authorities made amendments, providing a prescribed agreement form to protect the interests of innocent buyers. The particulars of the prescribed form are mentioned below:

ü  If a building is to be constructed, it is the liability of the promoter to construct it, according to the plans and specifications approved by the local authority where such approval is required under any law, which is in force at the time.

ü  The agreement should specify the date by which the possession of the flat is to be hand over to the purchaser.

ü  It should clearly mention the extent of the carpet area of the flat, including the area of the balconies, which should be shown separately.

ü  It should specify the price of the flat plus the costs including the proportionate price of the common areas and facilities (should be shown separately), which are to be paid by a purchaser and the intervals of instalment that have to be made.

ü  The agreement should plainly inform the purchaser of the precise nature of the organisation that is to be constituted by the other persons who have taken or will take the remaining flats in the building.

ü  It should include the nature, extent and description of the common area and facilities.

ü  The agreement should clearly state that use for which the flat is intended and also impose restriction, if any.

ü  The agreement should also have a certificate by an attorney-at-law or advocate, under clause (a) of sub-section (2) of section 3.

ü  It should also have attachments of the Property Card or extract of Village Forms VI, VII and XII or any other relevant revenue record, showing the nature of the title of the promoter to the land on which the flats are constructed or are to be constructed.

ü  The agreement should also have plans and specifications of the flat, as approved by the concerned local authorities.

IV] LOAN SMART – THE COMPLETE GUIDE TO HOME LOANS

There are several advantages to opting for home loan. Will explain the process and the facts that potential borrowers need to be aware of before taking a home loan.

Buying a home is one of the biggest priorities for every Indian, once he/she settles down in life. This is one of the most common goals that one finds, while drawing up comprehensive financial plans for individuals. Seven out of ten clients will have the goal of buying their first home, or buying a bigger home, or buying a house for investment.

This trend is also aided by the easy availability of home loans. Moreover, the rate of interest on home loans is competitive, as compared to other types of loans available in the market. Tax benefits too, are available against home loans, on the repayment of the principal amount, as well as on interest payment, which reduce the cost of borrowing. People also tend to let out the additional home purchased on a rental basis. This rental income earned from the property can be used to pay the equated monthly instalment (EMI) on the home loan. All these factors serve as incentives in invest in property.

People usually take home loans for a term of 20 years or more. This allows them to avail of the maximum amount, while ensuring that the EMI remains within the repayment capacity of the individual. According to the Reserve Bank of India (RBI), housing loans constitute more than 50 per cent of loans disbursed to individuals in the personal loans segment, while the remainder is made up of personal loans, vehicle loans, education loans and credit card outstanding.

Home loans are available for purchasing new, as well as resale residential properties and also for constructing a house. People can also avail of composite loans, to purchase land and construct the house. The title of the property should be free from all encumbrances, to avail of a home loan. In case of a resale flat, the purchaser should have all the chain of documents. Loans are available from the public sector, as well as private banks and also from housing finance companies. The maximum amount of loan available is approximately 80 to 90 per cent of the agreement or registration value. The registration value of the property is the value as per the stamp duty ready reckoner for the purpose of payment of stamp duty or the agreement value, whichever is higher. Stamp duty and registration charges are no longer financed and are included while calculating the total cost of a house.

Banks are governed by the RBI and follow the base rate system. Housing finance companies, on the other hand, are governed by the National Housing Bank (NHB) and follow the Prime Lending Rate system. Banks calculate the interest rate as base rate plus spread, while in the case of NHB the interest rate is the prime lending rate minus spread. Eligibility for a loan is based on the income of the borrower, i.e., the repayment capacity of the borrower. There is no standard norm for the same and every lender has its own set of rules for deciding the eligibility. Before finalising the loan disbursement, the lender also takes into account the EMI for the existing loans and credit card dues, if any.

The Credit Information Bureau (India) Limited (CIBIL) report is one of the most important sources for the lender to assess the credit history of the borrower. CIBIL is a repository of information that is pooled in by all banks and lending institutions operating in India. It is important for loan applicants to check their CIBIL score, before applying for any loan. A higher score can help the applicant to negotiate for a better deal, with respect to the interest rate and other charges. A score of 700 and above, out of 900, is considered good for getting any loan. The age of the borrower and property are also considered while approving a home loan. Lenders generally ensure that all EMIs are paid before the borrower retires, and fix the tenure accordingly. The retirement age is taken as 58 years in case of salaried people and 65 years in case of businessmen or professionals. Lenders normally assume that around 40 to 45 per cent of the borrower’s income is available to service the loan. Borrowers can also include their earning spouse, parents, children and brothers (in some cases) to increase their eligibility. It is mandatory for the co-owner of the property to be co-borrower but the co-borrower need not be a co-owner.

Different types of home loans:

1. FIXED INTEREST RATE: In this type of loan, the rate of interest remains fixed during the entire tenure of the loan. Very few banks offer this type of home loan.
2. FLOATING INTEREST RATE: The rate of interest varies in line with the repo rate declared by the RBI in its monitory policy, from time to time. The rate also varies with the change in base rate or prime lending rate of the borrower.
3. DUAL INTEREST RATE: In this system, the rate of interest is fixed for an initial period of one to five years and subsequently, the loan automatically follows a floating rate scheme.
4. HOME SAVER OR OFFSET LOANS: This is a good option for those who have large inflows into their saving bank account and is not used immediately. In this system, the loan applicant has to open a current account with the bank. The borrower can deposit and withdraw from this account just like any normal current account. However, interest is charged on the aggregate principal amount, after taking into account the balance in the home loan-linked current account. The rate of interest is higher by 0.25 to 0.50 per cent in these loans, as compared to regular floating rate home loans.

Miscellaneous Charges

Borrowers also have to bear charges, such as processing fees, legal fees and stamp duty, for creation for the mortgage. Prepayment charges are also levied on fixed and dual rate (till the initial period of fixed rate) home loans. However, there are no prepayment charges in case of floating interest rate home loans, as per the guidelines of the RBI and NHB. Therefore, it is advisable to opt for a floating rate loan as the borrower can prepay the loan any time. One can also transfer an existing outstanding home loan from one lender to another. This process is known as balance transfer. This is especially useful if the existing lender is charging a higher rate of interest, as compared to competitors in the market. However, the applicant should check the prepayment charges in the existing loan (if it is a fixed or dual rate loan) and the processing fees levied by new lender, before opting for a balance transfer option.

Tax Benefits

Deduction under section 80C: Principal amount of home loan up to a maximum limit of Rs. 1,00,000 in aggregate, with other items of investments, such as EPF, PPF, insurance premium, ELSS scheme of mutual fund, etc.

Deduction under section 24B: Interest on home loan to the extent of Rs. 1,50,000 if the property is self-occupied. If the property is let out, the full interest amount is eligible for deduction. Both, the owner and the co-owner, can claim the tax benefit in the ration of their respective share in the home loan. The co-borrower who is not a co-owner is not eligible to claim the tax benefits.

V] LEGAL EYE – CHECK FOR ENCUMBRANCES ON PROPERTY

Get a ‘nil-encumbrance’ certificate before buying any property, to ensure that there are no encumbrances attached to it.

For anyone buying a property, it’s important to ensure that there are no encumbrances attached to it. Now, the best way to do that is through a nil-encumbrance certificate. The charges created on any property reflect directly on this certificate. If any property has been offered as a security for a loan or has been purchased from borrowed money, it will create a charge in the form of an encumbrance. So, even if you want to know if the property has been mortgaged as security for any debt or obligation, the best way to do so is to check the certificate which will have an encumbrance charged.

Whether it’s a sale of property or a purchase, a nil-encumbrance certificate is an important document. The certificate is also issued for the purpose of seeking a loan. What the nil-encumbrance certificate does is that it certifies that the property in question is not already mortgaged. If already mortgaged, the liability for the outstanding loan may land up being passed on to the new owner. The nil-encumbrance certificate is issued in the language in which all registers and records are maintained at the sub-registrar’s office. However, an English translation can be obtained after payment of an additional fee.

Anyone purchasing a property can obtain this certificate from the registrar’s office. There is a procedure however, to obtain the certificate. Firstly, an application needs to be submitted on Form 2 (with a Rs. 2 non-judicial stamp affixed) to the tahsildar, giving your complete residential address and the reason for which the said certificate is required. After this, you will need to attach a copy of your ration card or any proof of residence indicating your residential address, duly attested. Ensure you furnish details of ownership of immovable properties providing correct survey numbers and the place where the property is situated. The application must have complete details of the period during which encumbrance is to be examined, the full description of the property, measurements and boundaries.

This application has to be submitted to the jurisdictional sub registrar’s office, under which the property falls. Requisite fees have to be paid too. The fee is to be paid for every year, with any fraction of the year being considered as a full year. After receiving the application, the tahsildar seeks a report from the patwari inquiring whether there is any entry in favour of a person or legal body. If there is no such entry and the report is favourable, the nil-encumbrance certificate is issued after conducting a detailed inquiry. It takes anywhere between a fortnight to a month for the certificate to be issued.

The encumbrance certificate is issued in either Form 15 or Form 16. In situations where the property does not have any encumbrance during the said period, Form 16 is issued. If the property has charges registered against it during the period, Form 15 is issued. Form 15 discloses the nature of charges created, documents registered in respect of the property, amounts secured, registered number of the document, registration details and references i.e., book numbers.

However, remember that the certificate is issued only for a pertinent period of time and does not cover any period prior to or after the period requested. This certificate is an extract of the register maintained by the sub-registrar’s office which, in turn, is based on the documents registered with the Registrar’s office.

There are certain times during which transactions are not registered too. Leases for less than a year need not be registered. Also, testamentary documents need not be registered and in case of equitable mortgage where the borrower deposits the original documents pertaining to the property with the bank, it may not get it registered with the registrar’s office.

VI] LEGAL TAKE – DOCUMENT REGISTRATION IS A MUST

Take note of the procedure to register a document to ascertain that all your property-related transactions are being made in accordance with the law.

It’s imperative that a document is registered in order to ascertain its legality. Failing registration, a document’s legality is questionable. Not every document can be registered though. There is a procedure to do the same. The sub-registrar cannot admit a document for registration, unless a string of particulars are fulfilled at the time of lodging documents for the registration under the provisions of the Registration Act, 1908. They are:

Ø  The property is required to fall under the jurisdiction/zone of the office of sub-registrar.

Ø  The purchaser/seller or power of attorney holder has to be personally present with the document to be lodged for registration. In case he is an authorised person, then power of attorney is required to be enclosed along with the main document.

Ø  The Registration Act provides for contingencies where delay in presentation in unavoidable. Section 25 reads: If owing to urgent necessity or unavoidable accident, any document executed, or copy of the decree or order made in India, is not presented for registration till after the expiration of the time herein, before prescribed in that behalf, the Registrar, in cases where the delay in the presentation does not exceed four months, may direct that on payment of a fine not exceeding ten times the amount of the proper registration-fee, such document shall be accepted for registration. Also any application for such direction may be lodged with a Sub-Registrar, who shall forthwith forward it to the Registrar to whom he is subordinate.

Ø  If the document lodged for registration is written in the language known to sub-registrar or if translation is annexed, it will be accepted for lodging for registration.

Ø  For correction, erasers, changes, the proper/authorised person is required to sign/ authenticate the correction, etc.

Ø  The description of the property must be correct and complete.

Ø  The stamp paper must be purchased prior to six months of date of lodging for registration.

Ø  If the full stamp duty is paid as per the determination of the true market value rules or on the basis of consideration, whichever is higher, then it can be admitted for registration.

Ø  If all the documents are tendered/lodged for registration as per the above points and are complete, along with necessary certificates, then the documents will be admitted for registration and thereafter, the process of registration will be completed.

Ø  If the case any lacuna is found in the document or in the enclosure lodged along with the documents, it will be recorded in writing on the scrutiny form and the documents will be returned to the person who lodged it for the purpose of removing the lacunas.

VII] DECIDING FACTOR – RATE YOUR OPTIONS

Confused about the many properties that you have been visiting? Need to figure out which one is right for you? Then take this table along the next time you go on site visit and rate the projects you see on various parameters. Mark them from 1 to 10, with 10 being the highest. The one that scores the most points out of a total 200, is probably the ideal home for your needs.

PARAMETERS	PROJECT 1	PROJECT 2	PROJECT 3	PROJECT 4	PROJECT 5	PROJECT 6
NAME OF THE PROJECT
BUILDER BRAND
LOCATION
CONFIGURATION
PROJECT OVERVIEW
COMMON AMENITIES
OPEN SPACES
PLAY AREA
CLUB HOUSE
AREA OF APARTMENT
HOME LAYOUT
FIXTURES AND FINISH
LOCALITY
CONNECTIVITY
EDUCATIONAL FACILITIES
SHOPPING OPTIONS
HEALTHCARE SUPPORT
GREEN FEATURES
RESALE POTENTIAL
RENTAL DEMAND
TOTAL