If you are buying a property in the outskirts of Chennai then check for the following details with the developer:
Land rights document
Does the land come under city corporation limits?
Does it come under a Taluka area?
Check for non agricultural clearance if it is rural land
Has the developer obtained permission and required clearances from the area development board?
Has the respective government bodies legally approved water and electricity connection?
What are the administrative fees, duties and taxes to be borne by the property buyer?
Clarify the stamp duty, registration fees, documentation fees, electricity and water connection charges, car parking charges and maintenance fee.
Additional important expenses property buyers in Chennai need to be aware of include: Value Added Tax and Service Tax. In some cases, when the project reaches the possession stage property buyers will need to pay VAT and service tax in addition to the other expenses.
Service tax is tax levied on commercial and residential construction. In general the rate of service tax is 4 per cent of the total construction cost. The residential Builder’s agreement with the buyer must reflect this point.
VAT has replaced the earlier sales tax and all builders’ pay VAT. The builder can choose to pay two per cent of the total building cost or calculate it on item basis for materials like sand, cement, bricks, etc.
The service tax and VAT put together would roughly work out to 2% of the price mentioned in the sale agreement in the case of apartment complexes with less than 12 units, and for buildings with more than 12 units it would roughly work out to 6% of the total price.
Sometimes escalating construction costs can impact the amount charged by the builder, howeverreputed residential builders don’t levy any additional charges because of rising construction costs. Also, the rate quoted will include all taxes and that is the final price.
Are you in the process of buying a property in Chennai? If yes, then you might want to know how to register a property in Chennai.
Once you have shortlisted the hot property that you want to own, then the next logical step is to enter into an agreement for sale with the seller/residential builder. The agreement for sale is between the seller and purchaser. The deed must mention:
·Father’s name: example, Mr Praba, son of Mr Shanmugam Illangovan
·Advance amount paid with details of cheque number/demand draft number/cash paid
·Balance amount to be paid and various other details
Please bear in mind that the final sale deed completes the sale transaction. Who can draft the deed? An advocate, licensed document writer, or a chartered accountant who has a document-writing license can draft the sale agreement.
Only licensed copywriters or licensed typewriting copywriters must prepare the document copy, also the copy sheets sold by the registration department must be used. Cost of each copy sheet is 1 Indian rupee. There is a fee that you will have to pay for document writing and the fee is prescribed by the government.
When can you register? The registration must be completed within four months of the execution date. This timeframe is not applicable to wills. If you are unable to register within the prescribed timeframe then you can pay a fine and complete registration at a later date. The percentage of fine varies depending on the time delay.
Where can I register the property? Registration with the relevant district or sub registrar’s office is mandatory. Documents needed for registration are: Stamped, signed and executed deed; required registration fees, duplicate registration fees, sub division fees, etc. It takes about 3 days for the documents to be returned.
Please note a list of stamp vendors is available with the registration department of Tamilnadu. These vendors a re licensed to sell stamp paper at face value and commission to the vendors is borne by the government. Stamp paper is also available at the Sub Registrars’, Treasuries, and Assistant Superintendent of Stamps, Chennai. Stamp duty can be paid as cash or demand draft.
The overview of property registration in Chennai will give you a better understanding of the process!
The Chennai property market is prolific. Over the years the city of Chennai has evolved into a hot property market primarily because of rapid economic growth, great infrastructure, improved lifestyles and increasing disposable income among people.
Today, more and more people are able to invest in land, apartments, and houses at a much younger age; earlier people were able to buy a property only in their middle age. Times have changed; youngsters today are able to own an apartment thanks to the availability of numerous banks loans and the pocket friendly equated monthly installments.
To a new home buyer the whole property buying process may seem overwhelming. However, being organized and gathering adequate information will ease your worries.
Once you have decided to buy an apartment in Chennai you will need to:
· Research the formalities involved. The steps involved in buying land varies slightly from buying an apartment or house.
· Documents required to be submitted will differ depending on the choice of property land/apartment/house/ new property/resale property
· When buying a property from a private builder make certain that you get the original sale deed. The builder and the buyer must sign the sale deed.
· Verify if the building plan is legally sanctioned and approved.
· Hire a counsel to help you verify all relevant documents.
· Seek your lawyer’s advice to check the commencement certificate to ensure that the land is free from dispute.
· Clarify with the builder if he can provide a completion certificate.
. Check on the possession date / handing over of the property by the builder
· Draw a rough budget of how much it would cost you.
· If leading banks have tied up with the builder you can be assured that the builder is reputed as most banks have very stringent rules and don’t easily support residential projects.
Most importantly decide your budget for property investment. Keep in mind that right through the buying process there will be other expenses as well apart from the property price you will be paying. Other expenses include but are not restricted to stamp paper, lawyer’s fees, registration amount, maintenance costs, other facilities that you may have to pay for such as club membership etc.